Case Details

Over the past 55 years, Café de Coral (CDC) as a restaurant group rode upon opportunities and challenges. Under the leadership of a succession of family members, it was built up from the bottom from a humble family-owned establishment to one that exists in every district and neighborhood. CDC experienced economic success as it concentrated on growing into new cities and public housing complexes in the 1980s and became one of the first catering businesses in Hong Kong to go public at the time. However, it faced economic downturns due to over-ambition and over-expansion into the Mainland, which prompted a strategic retreat and an exploration into new operations models. Additional problems were brought about by modernization and challenges of the pandemic era, but CDC responded by embracing digital transformation, streamlining operational procedures, and providing incentives for staff retention; playing into its motto of “All Happy Together”. It is this very motto and the willingness to embrace change that drove many of the critical decisions and shifted the tides within the business.

The main case analysis is complex due to the cross-cultural nature of Hong Kong and therefore, the management style of CDC leadership. That is to say, the traditional nature of Chinese families, which are deeply linked to the values and practices from the Chinese Classics, intertwined with aspects of Westernized education and influence typical of Hong Kong. Though highly complex, the concepts and theories in the following Teaching Note do not aim to exhaustively teach Leadership Skills nor the Chinese Classics. But rather, cherry-pick relevant aspects that will guide an understanding of the CDC leadership actions leading to their current day success.