Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

January takings drop at 60% of London restaurants

04 March 2009 by
January takings drop at 60% of London restaurants

January was a tough month for London restaurateurs, with 60% of operators experiencing a drop in takings, footfall and customer spend, research has found.

The monthly London Restaurant Barometer, which was launched by Business Link last year, found that two-thirds of restaurateurs in the capital said January was down compared with last year, with 20% of those surveyed down more than a quarter.

The survey, which questioned more than 130 operators across London, also saw operators report problems with cash flow, as cash strapped diners ordered fewer starters and desserts and opted for free tap water.

One respondent said he was "very worried" about 2009.

"I didn't think our area would be so affected as the interest rate cut would benefit those with large mortgages," he said. "But this is counteracted by chain restaurants doing deals which we can't compete with."

Ashley De Safrin, tourism and hospitality specialist at Business Link, added that while many restaurants are offering special deals, profit margins are under pressure as a result.

"While encouraging restaurants to market themselves vigorously during these difficult times, I would caution them against offering blanket discounts as this directly affects their profitability and, ultimately, their survival," he warned.

"There are excellent ways of creating new business without having to sacrifice your profits."

To take part in the February London Restaurant Baroment survey, visit the Business Link website here >>

Good customer service more important than price in restaurants >>

Restaurant barometer to help restaurants battling recession >>

Consumers to cut back on eating out during credit crunch >>

Heston Blumenthal hopes to reopen Fat Duck this week >>

By Kerstin Kühn

E-mail your comments to Kerstin Kühn here.

Caterersearch.com jobs
Looking for a new job? Find your next restaurant job here with Caterersearch.com jobs

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking