why the high-street crisis isn't all bad for the food industry
By Sean Nevin
The year is only three months old, but so far 2019 has been far from tasty for many restaurant chains.
Earlier this week, the owner of Giraffe and Ed’s Easy Diner, Boparan Restaurant Group, said it intended to close 27 of its restaurants across the country with the company entering insolvency, putting 340 jobs at risk.
The issues on the high street are not just affecting them. Household names including Gourmet Burger Kitchen, Prezzo, Carluccio's, Byron and Jamie's Italian all either closed branches, entered administration, needed rescue deals to stay afloat during 2018.
The high street’s toil meant over 10,000 restaurant workers lost their jobs last year, according to the Centre for Retail Research. Forecasts suggest even more jobs will be lost this year.
Independent restaurants could thrive as chains collapse.
Most of the blame has been placed on soaring costs across the industry. Increases in the minimum wage and rents have hit hard, all coming while the pound is plummeting amid the backdrop of Brexit uncertainty.
Mix in rising business taxes for large businesses and soaring food prices and you end up with a lethal cocktail of issues that is making margins unsustainable.
With the big-name chains no longer the behemoths they once were, this could all be playing into the hands of independent eateries.
People are still eating out. The casual dining market is on the up with restaurant visits rising by 7% between July 2017 and June 2018 according to the NPD research group.
But don’t get comfortable just yet.
With rent prices eye-wateringly high in London, the capital’s food scene could bare the brunt of the high street’s demise harder than anywhere else.