Restaurant and pub senior executives call on PM to help industry

More than 20 chief executives of restaurant and pub groups have urged the Prime Minister Theresa May to help the sector by considering a VAT cut, extending transitional relief on business rates and reducing the national insurance burden.

The call was made in a letter, published into today’s (19 December) Evening Standard, which said: “We pay millions of pounds in VAT, business rates, national insurance and other taxes. In other countries, taxes are cut for the hospitality sector.

“We want her to consider a reduction in VAT, extending transitional relief on business rates or reducing national insurance contributions.”

The list of senior executives includes Chris Hill, CEO of New World Trading Company; Alex Reilley, co-founder, and Nick Collins, CEO of Loungers; and Jeremy Roberts CEO of Living Ventures.

The bosses also highlighted to PM May their “anxiety” over potentially losing many of its foreign EU workers after the Brexit vote.

They also raised concern about the weak pound increasing food costs by about 5%. The letter also pointed out that: “Our industry is also penalised because restaurants and pubs have to charge 20% VAT.”

The increased costs of the new apprenticeship tax and increase in the national living wage to £7.50 next year and towards £9 by 2020 were also highlighted by the letter.  

“We back this – we want to pay our people well. However, labour costs represent around 30% of our revenue and we need balance elsewhere in the tax regime to do that.”

The letter: Restaurants need Theresa May's helping hand

The letter: Restaurants need Theresa May’s helping hand

We know Theresa May appreciates the contribution of the hospitality industry but we are not sure the Government understands the commercial pressures we face. We pay millions of pounds in VAT, business rates, national insurance and other taxes. In other countries, taxes are cut for the hospitality sector.

The weak pound has led to food costs increasing by about 5%. Those of us with central London sites have seen rents soar and an increase of 30-40% in business rates. Our industry is also penalised because restaurants and pubs have to charge 20% VAT. We want to tell the PM of the anxiety over our sector if we lose significant numbers of our teams, many of whom come from Europe. We want her to consider a reduction in VAT, extending transitional relief on business rates or reducing national insurance contributions.

John Vincent, CEO and co-founder, Leon

Henry Dimbleby, co-founder, London Union

Jonathan Downey, co-founder, London Union 

Mark Selby and Thomasina Miers, co-founders, Wahaca

Luke Johnson, chairman, Patisserie Holdings

Steve Richards, CEO, Casual Dining Group

Robin Rowland, CEO, Yo! Sushi

Gerry Ford, CEO, Caffè Nero

David Campbell, CEO, Wagamama

Jens Hofma, CEO, Pizza Hut Restaurants

Simon Kossoff, co-founder, Carluccios

Richard Hodgson, CEO, PizzaExpress

Chaker Hanna, CEO, Levant Group

Andy McCue, CEO, The Restaurant Group PLC

Jeremy Roberts, CEO, Living Ventures

James Horler, CEO, 3Sixty Restaurants Ltd

Jason Myers, CEO, Busaba Eathai

Chris Hill, CEO, New World Trading Company

Nick Collins, CEO, Loungers

Alex Reilley, co-founder, Loungers

Ajith Jayawickrema, founder and director, Turtle Bay Restaurants

Richard Bigg, managing director, Camino