Restaurant Takings vs School VAT

[PollyG23]

Restaurant takings are down YTD and most commentators are saying that it is due to NICS and min wage but surely a big factor is due to the VAT on school fees which is eating into middle class discretionary spending- why is no one mentioning this? (Or maybe I just haven’t seen anything?) What else is getting eaten into? (No pun intended)

Restaurants are suffering from less revenue from most people. Not just the tiny % of adults paying private school fees.

Like PPs said, poor quality, poor service and extortionate prices is the reason. And every time someone feels ripped off, they're reluctant to do it again.

My impression is that less people are pulling out their kids from private schools (if they're already in the system) than was initially predicted but i suspect they’re cutting back a lot on unnecessary day-to-day spend if the margins are tight. I personally think day-to-day would be cut before a holiday but could be wrong

Less then 7% of children attend private school I cannot see how you’re saying that prior to the introduction of VAT the parents of the 7% are supporting the hospitality industry single-handedly.

This resonates with me. Yes, probably just everyone poorer

Most people who eat out don't have dc in private schools.

Many people are felling the pinch & cutting back on discretionary spending

It’s only been one term of fees and it hasn’t negatively influenced us eating out. Saying that, the education tax policy has given us the final push to leave the U.K. (at least for a few years), so I guess we won’t be eating out in the UK at all during that time.

I have 2 DC in private school. We’ve stopped eating out because it’s such a rip off these days it’s not enjoyable. DH asked if I wanted to go out for Mother’s Day and I really just didn’t want to. The food is so overpriced, tables are too close together, service is poor, the general public annoy me (peri menopause). We had a Chinese in the comfort of our own home (which was still overpriced), but at least I could get straight into my PJs afterwards!

I’d happily eat out more if there were more decent restaurants to choose from. Seems to be mainly chain places serving microwave food and fried chicken shops.

My spend in coffee shops has gone down as all of the ones round my area now allow dogs in.

Nothing to do with private schools in my case!

Most of the people I know are saying similar. Nothing to do with private schools for them either.

The Mid-range restaurant market is saturated ..

I stopped eating out just because the added service charge annoys me. I don't mind paying a fair price for a meal out, but sometimes the 12.5% as a tip just seems so disproportionate to the labour time of the service. My family do always choose the expensive menu options so it feels more like a tax on giving them your business than anything related to the customer experience.

My kids are in private school. Like many others I have stopped going out to eat but nada to do with private school. Like others, various grandparents are helping out now when they weren’t before. Helps the IHT and the VAT.

More that for the four of us a mediocre meal a couple of glasses of wine is north of £150. Madness. I also don’t take my kids to £20 a pop trampoline parks, buy them White fox or endless costa coffees.

We have a budget to live to and I want them to learn that treats are treats, not weekly occurrences that people seem to feel they are entitled to to.

I have 3 kids in private school. We are absolutely cutting back on non essential spending - including our teens non-essential spending. So between the 5 of us it is probably close to £1000 - £1200 a month or possibly even more that we are saving in my case (and my DH) by taking lunch to work (instead of buying from an independent) never buying coffee and not eating out as a family weekly and in my kids case not spending it on bubble tea / matcha / ice cream or buying bits and pieces from the high street. I get annoyed with my dd if she gets the bus to school everyday (it’s a 45 minute walk). No holiday home here, or inheritance. Just a huge number of hours at work (70 last week).

How ironic indeed. I’d do the same to be honest.

Although I have never considered it I don't think its a ridiculous suggestion OP.
Our fees are up around £300pm and we have saved that by not replacing our cleaner who retired and we are certainly not going out as much.

Surely all those who have removed their kids from private schools due to the VAT now have extra money to spend in restaurants??

(I know several that will at the end of this year!)

We are very comfortable, but ours are in state school. So VAT not affecting us at all.

Restaurant takings are down because prices have increased due to general cost of living increases over the past few years and poor quality. Dh sells professional kitchen components to some of the higher end restaurants. Raw materials (metal costs) have gone up hugely, in large part due to Brexit, which is passed on to the restaurant and they no doubt must have to raise menu prices.

All the restaurants around here are struggling for staff, the food quality is blah and service isn’t great. I can think of only 1 restaurant locally I would pay to eat in. Otherwise, it’s all a bit shit and at £80 easily for 2 adults and 2 children, that’s nearly my weekly shopping and I could cook something so much nicer myself. Why go out? My middle class self is quite fussy and I’d rather eat my own cooking, even with no VAT to pay.

I’ve stopped eating out as much because it’s just become quite disappointing. Quality and quantity of portions keeps going down while the price keeps going up.

I understand the pressures on restaurants that mean they have to do this, but for me choosing where to spend my money it is making going to restaurants less appealing.

😂😂😂funniest thing I've heard in ages

7% of the population is around over 4.5 million people that you’re referring to!
You’re talking as if 7% is nobody.
This is astounding.

I do agree though that as prices have gone up I expect more so most meals out are pretty disappointing, makes us reluctant to spend the money

Probably spending house to nicer areas and getting extra tutoring.

It isn't the case that 100% of the population have school-aged children, though, so the actual percentage of the population paying school fees will be much lower.

7% of school-aged children, not 7% of the entire population

I actually did have to eat in a hotel restaurant a couple of weeks ago when I was travelling for work. This cost my employer £20. It was shockingly bad. And why I don’t spend my own money eating out anymore!

So the incessant screeds about how VAT on private schools would lead to the near-collapse of the entire educational system turned out to be baseless fear-mongering? I'm shocked. Shocked.

Well not that shocked.