In recent times various restaurants have closed down, such as the Jamie’s Italian restaurants owned by Jamie Oliver. Share values of the Restaurant Group have plummeted too, and this group owns household names such as Frankie and Benny’s. Read on to find out what has happened to UK restaurants.
The food sector is under a lot of pressure right now across the UK. Restaurants are having to pay the living wage, which has seen the wage bill increase, and they are also paying the apprenticeships levy. The cost of ingredients has also increased, causing the cost of running a restaurant to go up.
The reason many ingredients cost more now is due to Brexit, as the pound’s value has decreased and so the cost of food from Europe has gone up. This is why it has affected Jamie’s Italian, as it buys ingredients from Italy.
Another issue is that the restaurant industry is so large and there are just too many restaurants in existence. Some need to close, as there is an over-supply and consumers have so much choice. Many places offer discounts, and prices are being driven down at the same time as there are increased costs for the restaurants. It is inevitable there will be casualties.
The answer could be to move with the times and invest in new technology. Social media drives a lot of change, and young customers use the internet to research places to eat. They share ideas and opinions and want to engage with the restaurants that are on Instagram and offer a good eating experience. Restaurants also need to use modern commercial catering suppliers such as https://www.247cateringsupplies.co.uk/ to ensure they have the most up-to-date equipment.
Healthy living and new tastes have also driven change that has been hard to keep up with. There is a growing vegan market in the UK, and many traditional restaurants are finding it hard to cope with the pressure of these changing tastes. At the same time, inflation means people are looking to spend less, so there has been a double impact.
Other new developments such as Deliveroo and Just Eat can help to increase sales for restaurants. However, these firms also put pressure on restaurants in terms of staffing with an increase in demand for staff to fulfil the take-away orders.