There has to be something fundamentally wrong - restaurant closure

[Terroror]

A restaurant we go to quite often is about to closing after two decades in business.

It’s popular, booked out all the time. In fact, I understand it’s had the busiest Christmas period in its history.

Its closing because the business is no longer sustainable to due to rising costs. Not lack of custom - it’s very busy - but energy costs, rates, staffing costs.

A much loved business down the pan.

There really is something fundamentally wrong when experienced restauranteurs with a busy restaurant can’t make this work.

I don’t see much concern from the government.

AIBU?

Definitely agree, if it's a popular place with repeated custom then people won't mind paying a little extra and the business can continue. Projections would be run for the year or two ahead and inflation, cost increases would be allowed for.

High rents, business rates, ridiculous utility costs...

No wonder independent shops and restaurants end up closing.

This government does not understand small businesses and is doing nothing to support them.

Plus with the cost of living customers have less money to spend.

Read Giles Coren in today’s Times on the subject. (7/2). Taxes and wages too high and people can’t afford to eat out.

Wages too high? People can't afford to eat out? It's one or the other. Or is he saying that hospitality workers don't deserve to be paid enough to eat out

Rates and energy costs are the reason our local pubs are closing down, no support rising prices people not spending. It’s a bit of a shit show out there for all SMEs

There’s a restaurant up for grabs in our
local town - the rates alone are £68k per year. That’s before staff costs and other bills. It’s just a small town in the midlands mind you, nothing fancy. The mind boggles, how any business could stay afloat.

As someone with a business - neither did the Tory’s, please don’t imply it’s all this government . This gvt have at least doubled the employers NI tax allowance to £10,000 per company per year - so that many company’s and individuals with 3 or less people won’t pay any at all - not exactly hugely publicised by right wing media - in fact anything positive is kept very quiet.

the business rates system needs total reform and so in my opinion do rules around commercial rents - in my view if premises have been empty 6 months it more the local authority should have a rule that all offers go via them and are let to the most viable business at best offer as they are making jack shit if it’s empty -

You clearly haven't visited Bristol city centre...I stopped working there in 2009. Since then there have been 3 roads built full of bars/restaurants, lots of pop up food vans. The centre has at least 5 food vans often more.

The town I live in outside of Bristol has 4 Indian restaurants. 2 Italian. Several pubs that do food. A two restaurants that do a whole range of food. A fish restaurant. A bakery cafe.A tapas/Spanish bar. Plus at least 6 take aways...all for 27,000 people. There are a total of 15 pubs i can walk to from my house including 2 in our lying villages.

It's boom town re eating/drinking out. Yet we have lost 2 women hairdressers in the last 5 years.

Agree that a lot of the time it’s to do with the commercial landlords and their greed. Years ago when I worked for a high street bank, the lease on one of the branches came up for renewal. It was only a small branch in an enormous building so the bank said they only wanted to back rent half the property (the other half could have easily been a separate unit for a shop etc). Landlord said no out of pure greed so the bank shut the branch and the building is still empty 10 years later. It wasn’t financially viable for them to keep that branch open because the overheads were massive in comparison to the money the branch was making.

If commercial landlords had to pay the business rates on their properties - occupied or not - then you'd see things change instantly.

In fact the instant solution to all empty property - residential or commercial would be to make them cost money regardless of whether they are used or not.

You can tell it's probably the best solution as it will never happen.

Landlords do pay rates when the premises us empty.

there are ways of getting round not paying business rates on an empty premisses.

And it's tax deductible anyway.

The government is currently putting legislation through parliament which will ban upwards only rent review provisions in commercial leases. This is a control on commercial rents.

That's interesting, didn't know that.

Thank you