“‘The hipsters are coming!’ – I remember seeing that on social media,” laughs Matthew Richardson, co-founder of Terracotta, the sleek, chic Mediterranean restaurant that finally opened its doors on said waterfront in October.

In a sense, many of the locals’ fears were justified. Terracotta is indeed a concept restaurant. And a formal one – you cannot simply walk in and sit down; guests are greeted at the door to be seated. There’s lounge music and mood lighting. Reservations are highly recommended. Staff even wear uniforms. And, yes, it’s from the group behind rowdy SoHo bars Shady Acres and Honky Tonks Tavern, and the sophisticated Quality Goods Club (QGC). Whisper it: hipster hang-outs.

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In short, Terracotta is utterly unlike anything else on Lamma – and that might be hard for some nimbys to swallow. “The people who said they’d never come, maybe their friend went and now they’ve realised it’s not sinister or anything,” adds the 33-year-old Brit, hopefully.

This most unthreatening invasion has its roots in the pandemic, when Lamma became a regular recreational hideaway for Richardson, like so many others. “During those years Lamma felt like an escape,” he adds, “like going away to this melting pot of people from different places and backgrounds – I thought of it as a place to relax. We envisioned a real seaside feeling, like when you’re on holiday.”

On one visit, he sat down for a pint at beloved British pub The Blue Goose Tavern that was about to shut up shop in summer 2022, freeing up arguably the best waterside terrace in town. The conversation began instantly. “It was a bit of luck – we went there for dinner at the right time,” he remembers. “We knew it was a location too good to pass up.”

Mediterranean cuisine was a natural fit with the desired getaway vibe, so Richardson turned to Richard Solnik, previously of Bedu and Artemis & Apollo, for the QGC Group’s debut dining-first venture – and fifth venue in four years.

For the decor, they employed Studio Amal, the Lamma-based duo more known for its residential work. “But that’s what we wanted – for it to feel like home,” says Richardson. The resulting wood furnishings are rustic and restrained. Even the original tiling from the site’s earlier incarnation as a Chinese restaurant has been uncovered and given a place. “When you do anything with a concept in Hong Kong, you have to force it on people,” says Richardson, pointing the finger at the group’s proudly American-themed Honky Tonks. “You go to bars to escape, so they can be over-the-top – here, we didn’t need to create something that didn’t exist, we just let what was naturally here shine through.”

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While opening on an outlying island wasn’t trouble-free, the easiest part was finding employees. “I underestimated the number of talented individuals there are on Lamma,” admits Richardson. “There’s some incredible people living there, who’ve chosen to live on Lamma as a lifestyle choice.”

Contrary to hearsay, no one was shipped out or pushed to relocate. Indeed, it’s worth noting, for all locals’ fears about out-of-towners infiltrating their ranks, the restaurant’s 14 full- and part-time day-to-day staff – including Solnik and general manager Jean-Morne Leibbrandt – are all long-term Lamma residents. “I didn’t want to poach from people,” Richardson adds, although long-time islanders will certainly spot a few familiar faces on shift at Terracotta.

But have the Lamma locals been converted? When we visited on a Friday evening a few weeks after the restaurant’s opening, the dining area was more than half full. As you might hope from a group better known for its drinks, the cocktails were sublime. The signature G&T – served with Xoriguer Mahon gin – must be the best on Lamma, and the Riptide Daiquiri – with lime, date molasses and mango – would make Hemingway proud. All priced at HK$80 – not Lamma cheap, but significantly below the going rate in Central.

Selling drinks on Lamma, however, was never going to be a challenge – and the venue’s bar and smoking terrace areas remain perennially busy. The real test, though, was the food.

The dining menu is relatively compact, with just a handful each of snacks, “smalls”, sides and from-the-grill mains. Among the former, the hummus (HK$65) and smoked labneh (HK$55) were among the best this former Dubaian has tasted outside the Middle East. The white anchovies (HK$95) came sharp and sour, overpowered by pickled shallots, while serving the Greek olives warm (HK$35) was a nice touch.

Veggie diners are in luck: the roasted aubergine main (HK$150) is a tender delight dressed with tahini and pistachio, and we’d order the heirloom tomato salad (HK$120), with whipped feta and Calabrian chilli, any day. Only the 200g Australian flank steak (HK$195), apparently chosen by the chef for its chewiness, over-delivered on its promise – perhaps why it was already switched out for a 300g strip loin (HK$220) by the time we went to press. Happy to let said chef lead? Then you can splash out on a HK$380 per head “feed me” option.

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It appears that Terracotta has already impacted Lamma’s dining and physical landscape, and there may be no turning back for this sleepy village. In the weeks since its opening, neighbouring restaurants have seemingly reacted, with decor refreshes, new music systems and – just maybe – a more assertive attitude to customer service. The rowdy new Spicy Island Kebab House has injected abrasive beats and another steady source of cold lagers along the bustling high street, while the neighbouring low-key Man Kee cha chaan teng has reinvented itself with a new fusion menu. Both venues sport the clean, industrial-chic furnishings that are de rigueur in SoHo. There’s even a new bubble tea joint, Bubble Up, just opened off the main drag.

So, yes, the hipsters have indeed arrived – and the locals are upping their game in response.

The next test will be if Terracotta transcends the gong-led allegiances and “Lamma drama” of the immediate islanders, and succeeds in Richardson’s goal of enticing tourists and townies to take the 25-minute ferry over just to eat – perhaps locals’ greatest fear of all. Beyond boozy brunches, there are plans to offer picnic baskets, and even run private sampans direct to the jetty outside the restaurant.

“All I’ve got to do is find a bloke to drive the boat,” Richardson quips. Lamma-ites might not like it, but the secret of their sleepy island is officially out – and Terracotta is another fine reason to visit.