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Oil industry slowdown forces top Aberdeen restaurant closure

18 March 2016 by
Oil industry slowdown forces top Aberdeen restaurant closure

An Aberdeen restaurateur is to put his restaurant into "hibernation" after corporate trade in the city "disappeared".

Stephen Dillon, who founded steak and lobster restaurant the Prime Cuts in 2007, will close the venue on Saturday with the loss of eight jobs.

Dillon told the Aberdeen Evening Express that midweek trade had been "non-existent" since the start of the year and blamed the oil crisis. The North Sea oil industry has suffered badly as the global oil price has fallen dramatically.

Dillon said weekend trade was better, but still down by 30%, and he estimated that overall trade had dropped 60%.

He told the paper: "All of the fine-dining establishments in Aberdeen have been hit really hard by the oil crisis.

"Last year cost me about £40,000. I was able to absorb that, but since January we've fallen off the plank."

The restaurant's struggle reflects those among the hotel industry in the city, which has seen a reduction in demand at a time when supply of bedrooms is increasing.

Analysis: Aberdeen's hotel market feels the pressure of the oil price drop >>

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