‘Restaurants won’t survive’: Michelin chef opens venues abroad to withstand UK taxes
Summary
British Michelin-starred chef Jason Atherton is opening restaurants abroad, such as in Italy, to help support his UK businesses due to high taxes and difficult conditions in the UK hospitality sector. He says restaurants in the UK face higher taxes than in Europe, making it hard to make a profit and risking their survival.Key Facts
- Jason Atherton is opening a new restaurant in Italy called Maria’s, located in the Principessa hotel at Forte dei Marmi.
- He has restaurants in various countries, including Dubai and St Moritz.
- Atherton says UK restaurants face higher taxes, including a 20% VAT (value-added tax), which is the highest in Europe compared to Italy’s 10%.
- Business rates (a type of local tax) have increased in the UK after Covid relief ended, adding about £32,000 extra in tax costs to the average restaurant.
- Employer contributions to national insurance (a UK tax on wages) have risen for lower-paid workers, increasing labor costs for restaurants.
- UKHospitality, an industry group, says UK restaurants are at a disadvantage due to these high taxes compared to European competitors.
- Atherton is cautious about opening new UK venues and says some of his UK restaurants are losing money.
- He strives to keep prices affordable, such as offering pints of beer for under £5 despite rising costs.
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