"I am trying to sustain our business by opening abroad. We are opening one new restaurant in the UK but we are very cautious we are certainly not gung ho like we were five or six years ago. If we didn't have a global brand we would find it tough because the UK is tough."
"All I know is that the tax on hospitality in the UK is the highest in Europe. Ireland VAT is 9% we are 20%, hospitality in Ireland is booming. We are not asking for handouts, we are asking for a fair chance to stay alive."
"Business rates increased this year as Covid-era reliefs expired. The industry body UKHospitality has calculated that this will hit the average restaurant business with 32k of extra tax. Additionally, VAT, a consumption tax added to most goods and services, is at 20% for restaurants in the UK, the highest rate in Europe."
Jason Atherton, a 54-year-old Sheffield-born Michelin-starred chef, is expanding internationally to offset financial pressures on his UK restaurants. He is opening Maria's in Forte dei Marmi, Italy, while maintaining a global portfolio including venues in Dubai and St Moritz. Atherton reports that profitability is significantly easier in countries with more favorable policies toward hospitality businesses. The UK hospitality sector faces mounting challenges including increased business rates following expired Covid-era reliefs, a 20% VAT rate on restaurant food, and higher employer national insurance contributions. These taxes represent the highest burden on hospitality in Europe, contrasting sharply with Italy's 10% VAT and Ireland's 9% rate. Atherton emphasizes that without a global brand, UK restaurants would struggle to survive current conditions.
#uk-hospitality-crisis #restaurant-taxation #international-expansion #business-rates #vat-comparison
Read at www.theguardian.com
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