Bao co-founder Shing Tat Chung: ‘Diversify, prepare, and avoid being too optimistic’

Should there ever be demand for a hospitality ‘how to’ guide on responding to a global pandemic, the Bao team could write a pretty strong one.

Since those initial virus rumours began to circulate at the beginning of this year, the London-based Taiwanese restaurant group didn’t waste any time in mobilising a response.

In March, the then four-strong brand – with restaurants in Soho, Borough and Fitzrovia, plus a ‘Bao Bar’ in Hackney’s Netil Market – announced it was due to open its first all-day dining concept, Café Bao, in Kings Cross.

Not ideal timing, but as co-founder Shing Tat Chung tells MCA, undeterred by the Kings Cross set back and estate-wide closure, the business set about pursuing a different avenue of opportunity.

From April to July, it launched three independent delivery concepts – delivery-only Bao sister brand Rice Error, a selection of at-home ‘Bao Made By You’ kits, and Call Suzy, a second delivery-only brand from its older sibling restaurant, XU, in Chinatown.

Unsurprisingly, this year wasn’t the first time the business had explored a delivery option, but due to travel concerns about its core bao bun offer, Shing says the business decided to hold off.

“The thought that we would be delivering a product under par, that wasn’t as good as the restaurant, didn’t sit well with us,” he says. “But as soon as we started to see the impact of covid in London, we had to think of a delivery option quickly.”

Set in the decision “it wasn’t going to be bao,” and inspired by the popularity of Taiwanese bento boxes, the group began exploring the idea of a new brand entirely.

“Rice Error became its own brand, but you can still feel it’s related to Bao,” Shing tells MCA. “You have less restrictions with a new brand, so we could have more fun with it.

“We felt we could be more creative and innovative. There were endless opportunities of what we could do.”

Offering a selection of chi shiang rice boxes with toppings from guinea fowl to mapo aubergine and chilli chicken leg, since its inception Rice Error has been operating directly from the Bao restaurants, but when in-store trade returns the business has no plans to abandon its new brand.

The sister concept has increased trade at Bao’s Netil Market bar to such an extent that operations have extended from two hours on a Saturday to seven day trading, and Shing says it will remain a part of the business’ wider plans going forward.

Not only will it “comprise the delivery option for all of our restaurants,” the business has considered expanding Rice Error as a “physical brand with a separate store,” though Shing stresses the team remain undecided on the idea.

As far as its ecommerce offer is concerned, the business has equal, if not higher, hopes.

Before the pandemic, its online retail arm comprised a “very small range,” of branded merchandise, and as the business had “always planned to increase it,” lockdown provided the perfect opportunity to do so.

Consumers can now choose from an extensive at-home range, including a Bao-Bleeker Burger partnership kit, a selection of spirits and cocktails, as well as t-shirts, tote bags, candles, crockery and more.

“The pandemic has really fast-tracked our ecommerce,” says Shing. “The next steps will be to build on its momentum and keep it relevant after covid.

“We’re going to keep developing it after the pandemic with more collaborations and lines. We want to create a more compelling offering and take it from restaurant replacement to more of a digital supermarket.”

Describing Bao’s diversification drive as a “huge pull” on resources and “massively stressful,” Shing doesn’t deny it’s been difficult, but with London likely to re-enter another quasi-lockdown next week, he doesn’t doubt it’s been worth it.

“Most of the hard work has been done, so whether there’s a lockdown 3, or they just call it tier 3, we are in a stronger position,” he says. “The ecommerce itself is now equivalent to one site’s revenue, so it’s really protecting the brand and the business.”

And although Bao hasn’t lost sight of its dine-in plans – if government restrictions allow it plans to open Café Bao in December – he adds that diving into digital is an option other restaurant brands should consider.

“Everyone’s got their own unique circumstances,” he says. “Some people will find it’s better to stay closed and claim furlough and CIBLS, but there are others who need the cashflow and want that brand presence.

“To those people, I would promote the idea of diversifying.

“This is not a short-term thing, it won’t be solved in the next six months. So, if people are trying to survive, they need to look to diversify, they need to prepare for continued hard times to come, and they need to avoid being too optimistic.”