Independent operators voice concern at ‘hardest ever’ hospitality trading environment

London’s independent hospitality operators have expressed concerns about the viability of trading, with Honey & Co co-founder Itamar Srulovich describing the market as the “hardest it’s ever been” since the chain was founded in 2012.

 

“People want to go out and celebrate, but the whole hospitality business model is out of whack,” he told attendees at the launch of Square’s Order Up cookbook in his Bloomsbury restaurant last night (1 December).

 

Jess Blackstone, co-owner at café chain Fink’s, added: “Nothing is not more expensive, but at the same time there’s a kind of energy in the industry. We’ve been growing even though it’s a difficult time.”

 

She said that while the industry in general may seem to be performing well “if you actually look at the individuals there’s so much churn”. 

 

“There will always be someone with a fantastic idea and some savings, but they might not be the ones who are still going a few years later, though the industry overall would be ok,” she said.

 

Hospitality Action’s chief executive Mark Lewis was also on the discussion panel, as Square will donate 50% of the cookbook’s in-person sale proceeds to the charity.

 

He said he had heard concerns from operators across the country. “London’s lucky in the sense that there’s such a big catchment area, but for a hotelier or a publican in a small village where people aren’t spending, if your business becomes marginal, it just becomes impossible to operate," said Lewis.

 

Atreka Cameron, founder and head chef of Caribbean restaurant All Nations Vegan House in north London, said the market has reverted to a similar state as that seen the beginning of the first UK lockdown in 2020, though she was relatively optimistic: “Just as we saw this through in the pandemic, we will see this through also.”

 

Lewis added: “Back in 2020 it felt like there was an end in sight because we were never going to be locked down forever. But now where’s the end in sight?”

 

He suggested that the hospitality industry is “almost too good at surviving and coping” and is therefore being overlooked by the government.

 

Honey & Co’s Srulovich had similar sentiments: “We in hospitality thrive under pressure and we want a little struggle and pressure and then we rise up. We are the kind of people that when it gets harder we just get through it.”

 

He half-jokingly said that the government should just “have it out” and openly “declare war on hospitality”. “We should go on a VAT strike, just don’t pay VAT for one quarter and see what happens,” he said.

 

Lewis also felt the government is “doing nothing” to help the sector following last week’s Budget. “There was a stab at some rate support but that’s really not going to move the dial at all,” he said.

 

“The hospitality industry is such a big provider of funds to the exchequer – they need to understand that they should take the industry seriously.”

 

Cameron added: “The government should put in a system to help people, just like after lockdown. They could give grants to help those struggling around this challenging time.”

 

Srulovich said: “Maybe hospitality is perceived as something that’s not hugely important, but I don’t think that’s a luxury, it’s a basic thing that everyone should have access to.

 

“We should be championing hospitality venues as community hubs. At the moment, on the high street, we are the only game in town. We are the places the community will build around.”

 

Square’s Order Up cookbook profiles recipes from 20 of London’s community restaurants, cafés and bakeries. Look out for The Caterer’s review of the book in the coming weeks.