In one instance, she had to explain to the authorities the Japanese tradition of drinking sake out of little cups after being accused of serving shots.
"Touch wood we’ve not had any major issues," she says. "I think we’ve brought a lot of fun to many people rather than causing any troubles for anybody."
Xiao's restaurant entertainment portfolio, which she runs alongside her husband Terence Chau, has now grown to include a number of karaoke bars, sushi bars and Japanese restaurants which are all located in and around Chinatown, an area considered a hot spot for assault by NSW police.
On a busy Friday night on George street, a large police bus is parked just 20 metres away from Mizuya, one of her Japanese restaurants which also provides karaoke. "One thing you learn when you are operating in a hot spot is you have to learn to distinguish between genuine customers and troublemakers," she says.
While the NSW government is considering expanding tougher licensing restrictions to curb alcohol-fuelled violence to George Street, encompassing many parts of Chinatown, local businesspeople say the area is safe.
According to figures published by the NSW Bureau of Crime Statistics and Research, crime in downtown Sydney has fallen since 2008 with violent crime in the city and inner south area falling 2.6 per cent in the past two years.
Maria Park runs O Bal Tan, a Korean BBQ restaurant on Pitt street in an area now known as "Koreatown". She says while there are a lot of intoxicated people in the area, "I don’t think it's as dangerous as the media says it is."
"Licensing in the city is quite strict – we get a few unannounced pops in from the licensing police so we’re quite good here,” she says. “I am quite strict with how alcohol goes out."
Park - whose family has worked in the restaurant trade for nearly 20 years - says all sorts of people like to drink.
"I don't think it is fair to stereotype Australian Anglos or Chinese or Koreans saying they are always drunk, it's not fair, cos it's not everybody but what you can do? Everybody is out for a good time," she laughs.
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