The British restaurant industry can’t survive this crisis unscathed

Carluccio’s was the first high street restaurant to go into administration during the coronavirus pandemic, at the end of last month. It’s no surprise as it teetered on the edge when Jamie’s Italian went under, and Byron and Prezzo were closing branches across the country in 2018. This was closely followed by chef Mark Hix’s five restaurants, which also went into administration earlier this week.

That’s only the beginning of what’s to come. How many other high street restaurants, mini chains and independents will fold during this time? The restaurant and hospitality industry is one of the hardest hit sectors in the country, relying on the 36 per cent of us who either ate out or bought takeaway food twice a week.

Their fortunes were not helped by the government initially announcing that people should not go to pubs and restaurants, yet stopping short of ordering them to close. Bookings decreased and reservations were cancelled; customers requested their deposits back but staff wages still had to be paid. Paul Ainsworth, a chef in Padstow with four restaurants, called it “the worst week of his life”, as he tried to prevent making any of his staff redundant.

Now that restaurants have officially closed, paying rent when no money is coming in is the next problem. On Thursday the CEO of Wahaca, Mark Selby, called on the government to introduce a nine-month freeze on rent for businesses to help prevent more going into administration.

Some chefs whose restaurants are closed have turned their attention to supporting the NHS. Celebrity chef Tom Kerridge raised more than £100,000 in just 48 hours and, along with a team of volunteers from his home town in Marlow, is cooking thousands of meals for frontline workers during the next eight weeks.

Not everyone in the industry has found such a simple solution. Producers who once supplied restaurants are having to throw away what can’t be sold, from dairy to vegetables. Some have managed to quickly remodel their businesses, such as the catering company Wolf & Lamb, a previously trade-only business which is now delivering boxes of fruit and vegetables to private addresses. The Roasting Shed is also offering a consumer service for the first time.

Other food services are also feeling the strain, forcing them to innovate. Supermarkets which have delivery slots booked up weeks in advance are now teaming up with Deliveroo to get essentials to people, with Morrison’s offering 30-minute deliveries. Food delivery box services, such as Gousto and Mindful Chef, have seen an incredible surge in orders; many have had to pause their offerings, unable to keep up with the pace of growth.

Our high streets won’t look the same after this pandemic is over. Many restaurants will never fully recover financially, or may never reopen in their current form; significant job losses in the sector are to be expected.

Although there are glimpses of positivity where new business models have been found, the outlook is nevertheless bleak. Our world-renowned restaurant and food industry is now struggling like never before. Whether it’s booking a food box to be delivered or ordering a takeaway from a beloved local restaurant, we should all support the British food business in whatever way we can afford.

Yours,

Emma Henderson

Editor, IndyEats