Restaurants warn of ‘damage to the closures’

A group of restaurant boss is warning the government must act to avoid damage to the closures and job losses”.

In a letter to the Chancellor, and Philip Hammond, have called for “root and branch” reform of business rates.

The chief executive officer of the Bills, and the president of pub and restaurant chain Mitchell and Butler are among the 15 who signed the letter.

A string of chains, including Jamie’s Italian and Byron have closed the vents, recently, in the midst of financial difficulties.

Last week, the pizza chain Price became the latest to cut back, closing 94 the outlet.

That amounted to about a third of its outlets and all its ambience resembles chain Chimichanga.

Barbecoa, a small chain owned by Jamie Oliver, went into administration last month, while the Italian chain Carluccio’s has called in accountants KPMG consulting on the possible strategies to reduce the costs.
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In the letter to the rector, prior to his spring statement on the economy on Tuesday, the leader described a “perfect storm” that has hit the sector.

They blamed “soaring business rates, the increase in labour costs and Brexit powered inflation” due to tough trading conditions.

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“We need government action to reduce the unnecessary costs of doing business, if we want to avoid damage to the closures and job losses,” the letter said.

“The industry is at a crucial point and has focused the attention now.”

According to a study published last week, one in three of UK’s top 100 restaurant groups are not making a profit.

Consumers ‘ purchasing power squeezed by low wage growth and rising inflation – means that consumers are reining in discretionary spend your free time in general.

Some are replacing it with the home-delivered meals or ready-made dishes, such as Marks and Spencer’s successful Dine for Two for £ 10.

Some analysts also argue there has been too much expansion between the chain restaurants.

Speaking to the BBC, last month, Roger Tejwani, from stockbrokers Finncap, said: “There is excess capacity on the market with consumers that have a significant amount of choice.”