‘Rocketing’ rents and
rates threaten historic
London restaurants . .
4
| Hospitality Today | Oct/Nov 2016
Tax burden ‘wildly disproportionate’
says industry leader
Prime Central London is on the verge of losing some of its best-loved
historic restaurants, with nine in ten restaurateurs gearin#g up to adapt
or die if rents and rates continue as forecast, according to a new report by
restaurant property agents Cedar Dean Group.
Nearly nine in ten (87% of) restaurateurs
said they would no longer be able to
continue their business in their current
form if rates and rents continue to rise
as forecast, according to the poll of 100
Prime Central London restaurateurs. Of
those 87%, four-in-ten (40%) anticipate
shutting up shop entirely, while 57%
say they will be forced to relocate to a
cheaper area. Only 3% said they thought
they could adapt their business model.
The research, contained in a report
released this month, comes as London’s
restaurateurs face up to the most
challenging business environment in
recent history. Prime Central London has
seen colossal rent rises over the last few
years, far outpacing those seen in the rest
of the capital. Rents in the W1 and WC2
postcodes have more than doubled in the
past year.
Rents in Mayfair have risen by around
400% over the same period, from £150
Zone A per square foot to £600 per square
foot today. By comparison, on average
London restaurants coming up to their
five-year rent review face an increase in
rent of 50%.