Martin Williams CEO of M Restaurants, which opens it’s latest venue in Canary Wharf this week, is calling for the new Prime Minister, Liz Truss, Nadhim Zahawi and Kwasi Kwarteng for sector wide support to become a reality in the face of the energy crisis.
Martin, who is also the CEO of the Guacho brand, explained, “500,000 jobs are at risk in the hospitality sector. Spiralling energy costs are likely to mean closing time for many Independent restaurateurs, start ups and founders (of which I was one from 2014-2019).
'Food and Wage Inflation, plus ridiculous rates have already wiped practically all profitability out of our sector – now energy costs will simply mean closure for many SME’s – unless the government steps in.”
Martin continued, “At Rare Restaurants we fixed our energy prices – had we not, across our 22 restaurants the impact of rising costs would have resulted in a £3.5m hit on our profitability. To maintain margins this would mean steaks would have to triple in prices to beyond £100!”
He went on, “Our brands current popularity means that we are opening a new M Restaurant in Canary Wharf this week and plan to open Gaucho in Newcastle and Liverpool later in the year, however unless energy prices are addressed, restaurants across the sector will be unable to viably open and many SME’s will sadly collapse.”
Martin concluded, “It is time to reverse the VAT increase made in April and have a comprehensive review and reduction in business rates so that Hospitality has parity with the retail sector.”