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To wonder why not all restaurants have registered for "Eat out to Help out"

(95 Posts)
daggered Tue 04-Aug-20 19:51:45

We're on holiday in a small beach resort and only about 4 local restaurants seem to have registered for the Government's "Eat Out to Help Out" scheme. They all have long queues. Back in my home suburb most but not all of the restaurants seem to have registered. It seems a no brainer to me so I'm wondering why some restaurants haven't bothered. Am I missing something?

OP’s posts: |
Justmuddlingalong Tue 04-Aug-20 19:53:32

They have to claim the money back from the government. Many restaurants and cafés don't have the funds to wait.

Glitteryone Tue 04-Aug-20 19:54:48

Cash flow.

Not all small businesses will have the money to fund this upfront and wait on claiming it back from the government.

user1497207191 Tue 04-Aug-20 19:55:41

Justmuddlingalong

They have to claim the money back from the government. Many restaurants and cafés don't have the funds to wait.

Correct, they need cash immediately to pay suppliers, staff etc., not wait weeks, maybe months for the Govt to pay. Most have already used up what reserves they had accumulated during a few months of lockdown where they had no income but expenses to pay.

canigooutyet Tue 04-Aug-20 19:56:14

You mean the thing that was announced earlier today or yesterday? Maybe that's why not all have jumped on board.

It's ok government suggesting discounts, but can the business afford to randomly knock money off? All those tenners or whatever mount up.

Port1aCastis Tue 04-Aug-20 19:57:05

Because the government will take ages to reimburse the restaurant business and they cannot buy food from their suppliers at half price so will risk: running at a loss.

littleducks Tue 04-Aug-20 19:58:04

There were problems with some of the furlough money rules changing last minute, they might not want to risk loosing out later down the line

Tobebythesea Tue 04-Aug-20 19:58:38

@canigooutyet

The businesses get the money back from the government

canigooutyet Tue 04-Aug-20 19:59:43

Oh damn they have to claim it back?

Yea can see why there is reluctance. Look at a lot of the "benefits" government have put in place. Free school meal voucher - some schools only got the money back in July.

The laptops, school puts in a request for 40. because that's how many students meet the requirement. School sent 9 and told that's all your getting.

Small business/self employed help at the beginning what a palaver and endless wait.

UnaCorda Tue 04-Aug-20 20:00:18

canigooutyet

You mean the thing that was announced earlier today or yesterday? Maybe that's why not all have jumped on board.

It's ok government suggesting discounts, but can the business afford to randomly knock money off? All those tenners or whatever mount up.

It was announced weeks ago. And the money is refunded.

Bitchinkitchen Tue 04-Aug-20 20:01:10

Tobebythesea

*@canigooutyet*

The businesses get the money back from the government

Yes, but not instantly, so they have to be able to afford the loss of revenue initially.

CoffeeandCroissant Tue 04-Aug-20 20:02:57

It should be reasonably fast, HMRC say they will pay eligible claims within 5 working days and businesses will be able to submit claims on a weekly basis.
www.gov.uk/guidance/register-your-establishment-for-the-eat-out-to-help-out-scheme#making-a-claim

canigooutyet Tue 04-Aug-20 20:05:03

Yes seen it was announced last week.

Can see restaurants lining up to sign up to something they will eventually get back.

What's wrong with companies running their own offers like they did before and during CV?

Bitchinkitchen Tue 04-Aug-20 20:05:40

CoffeeandCroissant

It should be reasonably fast, HMRC say they will pay eligible claims within 5 working days and businesses will be able to submit claims on a weekly basis.
www.gov.uk/guidance/register-your-establishment-for-the-eat-out-to-help-out-scheme#making-a-claim

I'm not sure I'd bet my business on that tbh. I think I'd be more likely to wait a couple of weeks for the inevitable teething issues/site crashes to be resolved.

Herdwick Tue 04-Aug-20 20:06:00

It's only on Monday - Wed. Many places near to me don't open Mon - Tue anyway and aren't going to change that just to make use of an untested government scheme for a month.

Bitchinkitchen Tue 04-Aug-20 20:06:35

canigooutyet

Yes seen it was announced last week.

Can see restaurants lining up to sign up to something they will eventually get back.

What's wrong with companies running their own offers like they did before and during CV?

Because when companies run BOGOF or similar, they are still swallowing the cost. This way they get it back from the government.

canigooutyet Tue 04-Aug-20 20:06:49

And lol at the government pay it back.

So for me to save a tenner on a meal now will bite me on the ass in raised taxes at a later date?

Shame they couldn't pump these spare tenners into education.

Amijustagrump Tue 04-Aug-20 20:08:59

Its an accounting nightmare. They charge at 50% off and pay vat at full price.

canigooutyet Tue 04-Aug-20 20:11:39

Wonder how long it will be before big chains use it for there benefit to screw over staff. Just like those who use tips towards wages.

Port1aCastis Tue 04-Aug-20 20:11:51

Never something for nothing and someone always has to pay so eventually that will be the taxpayer as the government debt is now astronomical, the meal scheme alone is estimated at a cost of £1billion

netflixismysidehustle Tue 04-Aug-20 20:12:04

Maybe it's because they wouldn't cope with the demand considering their reduced number of seats during Covid?

user1497207191 Tue 04-Aug-20 20:13:13

CoffeeandCroissant

It should be reasonably fast, HMRC say they will pay eligible claims within 5 working days and businesses will be able to submit claims on a weekly basis.
www.gov.uk/guidance/register-your-establishment-for-the-eat-out-to-help-out-scheme#making-a-claim

Anyone who's been owed money by HMRC knows that what they say and what they do are completely different.

I've got clients still owed money from February that should have been "advanced" funding to pay maternity pay!

HeddaGarbled Tue 04-Aug-20 20:14:23

The purpose of the scheme is to encourage customers on quiet days. If the businesses know they’ll be busy anyway, they don’t need it. Sensible, and public spirited, not to use the scheme when they don’t need to.

BKCRMP Tue 04-Aug-20 20:15:52

A few locally have said their booking A have dropped off a cliff edge for weekends and shifted to mon-weds instead

AnnieMaul Tue 04-Aug-20 20:16:08

For some businesses theres also the issue of potential devaluing of your product. It's why some places never have sales or discount codes, or don't participate in things like taste card or Tesco clubcard vouchers.

If you pay £20 for something one week and are happy with it, you're more likely to be reluctant to pay £40 for it the next. It can drive the expectation of low pricing.

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