Jason Atherton: UK hospitality industry’s “Hardest Hardship Ever”, Eyeing Faster Gulf Expansion
Michelin-Starrish Chef Jason Atherton says the UK’s hospitality sector is at its worst – everst state, rising costs, vat of vat and razor-thin margins as he feels aggressive expansion in the Arabian Gulf.
Only talking Arabian business In Dubai, where he is set to open four new restaurants, Atherton, who is the founder and owner of a social enterprise, said that UK economics degrees have boosted growth at home.
“The ink is not dry on contracts yet, but we have made an agreement with a hospitality group to open four restaurants in the next two years here in DAUDI.”
He said his UK outlook was cautious: “We’re not growing too much in the UK at the moment for obvious reasons. We’ll wait for the economy to be a bit stronger and moderate.”
The social enterprise operates an international portfolio of restaurants, including six in London. He said his Dubai restaurants, such as the critically acclaimed line of 45, are “on the rise,” fueled by a strong talent pool, a deep pool of culinary talent and consistent demand.
“Your mark in London, if you have a story of success, is between eight and eleven percent. Some people survive even four percent,” he said. “One change in economic news in the UK and you could see a tumbleweed of restaurants going bankrupt and closing their doors forever…
“If you have success in the UAE, you can see margins north of 33 percent. Night and day.”
He described the UK’s 20 percent on hospitality as “a really stupid move,” comparing it to Ireland’s announcement that it will cut the rate by nine percent by 2026.
“People have to believe in the UK economy. It’s a millionaire these days to open a restaurant in Central London.
“That takes a lot of money and vision and courage. It would be a shame to see it not happen in the near future because of the government banning our industry,” he said.
Atherton has also flagged the post-brexit labor shortage and the crisis of living as margin-killers, while decrying the growing exodus of high-net-worth individuals (HNWIs) from London to Dubai.
He said: “There are a lot of people leaving the UK. My friend who goes to school with him in Notting Wedwa, he hears that my news will go.”
However, he reaffirmed his commitment to the UK capital: “We will always work in London, that’s for sure. We don’t like to be as aggressive in London as we would like to be, if the economic perspective was more open to strategic investment …
“It’s really hard. I don’t want anyone to feel sorry for me. It’s not what it is, but it’s only real.”
Because now Atherton believes that the Gulf region offers exciting opportunities for premium hospitality: “There is a lot of potential that the region does not have.
