More online
www.thecaterer.com ‘I don’t take any money for myself’:
small businesses face a battle to survive Independent businesses say they are operating on too slim a margin
By Sophie Witts
Small hospitality businesses face a battle to survive with some chefs paying themselves less than minimum wage to keep their restaurants afloat. Rising food and energy costs,
a 20% VAT bill and a drop in customer footfall have pushed many independent venues to
the brink. The Caterer heard from mul-
tiple operators who feared large numbers could shut sites for good after Christmas rather than trade through the quieter January and February period. Gareth Fulford, chef patron
of Purslane restaurant in Chel- tenham, said his electric bill had risen from an average of £650 a month at the start of 2022 to around £2,000 a month. At the same time, the restau-
rant has cut its opening hours from five days a week to three with one on-site prep day, and it is 750 covers down on last year. “High street independents
are falling through the gaps, there’s just no support,” said Fulford. “When you look at the clo-
sures it’s my type of busi- ness that’s closing. One of my friends across town had a res- taurant very similar to ours – modern British – which opened in 2019 and shut about a month ago. It’s just not viable any more. He’s got a young family same as me. “I haven’t got wealthy back-
ers I can ask to invest another £10,000 into my business to keep me afloat. It’s me, my wife, and my employees. If we’re at a loss, we’re out of business.” He said the rise in costs
meant he was no longer able to pay himself a proper wage while keeping the business going. “I’m paying myself way less
than minimum wage. All I’m doing at the moment is keeping my colleagues employed, paying the government tax and paying the utilities companies. I don’t take any money for myself.”
www.thecaterer.com
money [to cover their bills].” James Lewis, head of creative development at the Gauthier restaurant group in London, told The Caterer costs had rock- eted for hospitality businesses. He said that while London landlords used the appeal of independent restaurants to sell residential property, there was little support offered to help businesses in real terms. “It’s almost impossible to be sustainable – only large players with deep pockets can feasibly survive, running loss-making ‘vanity units’ in premium locations,” said Lewis. A total of 383 pubs closed
during the first six months of the year, almost matching the total for 2022, when 386 sites were lost. In the last week, Liverpool’s acclaimed Lu Ban restaurant and Michelin-starred Pen- sons in Herefordshire both announced their closure due to rising costs. The hospitality industry has
Purslane in Cheltenham (top) and Lu Ban in Liverpool (above)
“I’m paying myself way less than minimum
wage” Gareth Fulford
Constant battle on price Bradley Dorrington opened the 50-cover Wine Cellar bar in Bury St Edmunds in August last year. Although his business is trading well, he said it was a struggle to compete with larger
chain restaurants on price. “We’re seeing a consistent
level of trade, but now cou- ples coming in are more likely to order a lower-cost bottle of wine, when previously they’d choose one from our middle range,” said Dorrington. “It’s a constant battle as [chains] can offer a lower price due to their purchasing power. “VAT cripples us before we’ve
even started. A lot of people don’t understand that in a res- taurant, for every pound spent, roughly 18p is gone straight away [to the taxman]. “There are some businesses that aren’t generating enough
been building pressure on the government to offer support to businesses in the Autumn Statement this week, with chef Tom Kerridge warning more venues will shut their doors without help. Fulford has spoken to his MP multiple times but said he had been told there was no money available for tax cuts. “We are desperate for help, and
I’ve written three letters to our MP and his response was that help will not be forthcoming. “I speak to colleagues and
other businesses across the country and everybody from restaurants to small hotels are clinging on by their fingernails. There’s only so long you can do that for. “Small businesses are the life-
blood of the high street, but we’re the ones that are going to be left behind if there’s no support.” The Treasury has been con- tacted for comment.
sophie.witts@thecaterer.com 24 November 2023 | The Caterer | 5
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96
