High Streets Initiative Praseeda Nair · 13 March 2018
Cost of doing business leaves high street restaurants at tipping point?
The UK’s hospitality industry has demanded government action to support high street restaurants left reeling from a series of body blows. Following a string of high profile store closures, with chains such as Prezzo and Byron reducing outlet head count, signatories from across the hospitality sector wrote to the chancellor to raise a number of issues. The letter read: Recent weekshave’seenadisappointingflurry of restaurant venue closuresas a result ofthe perfect storm of soaring business rates, rising employment costs and Brexit-fuelled inflation that is hitting theuK’shospitality industry.Our outletsare the lifeblood of our high streets, towns and villages, and havelongdrivenregeneration and employment in local communities. Minimum wage increases and rising food costs continue to stretch the margins of small restauranteurs, but business rates was raised as the headline concern for the sector, as 8, 000 restaurants across England face property tax rises above inflation when the next rates cycle begins in April. According to ratings advisor Altus Group, restaurant owners will pay and extra 652.91m in business rates over the next business rates regime. Following last year’s revaluation, 3, 220 small restaurant businesses will see bills increase ahead of September 2017’s three per cent consumer price index (CPI). Over the five-year cycle, the average tax rise per restaurant could reach 24, 133. Take a look back at our business rates coverage:
ABOUT THE EXPERTPraseeda Nair
Praseeda Nair is an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.