Colliers International has called for reform of business rates as restaurant and casual dining brands struggle with the “onerous” regime.
A Colliers analysis estimates Byron’s total rateable value has increased 40% with the 2017 Rating Revaluation, up from £7.764m to £10.63m, with the Cut in SE1 alone seeing a crippling 283% rise from £28,500 to £133,000.
Prezzo saw RV up 23% from £12.8m to £15.9m, with a 116% rise in RV in North Audley Street from £78,000 to 169,000.
Jamie Oliver’s total RV bill appears to have risen 28%, up £5.7m to £7.3m with rises highest in Brighton - up 154% from £68,000 to £173,000).
John Webber, head of business rates at Colliers said: “Several dining chains are now suffering from the same woes as the high street retailers who are also seeing reduced footfall as consumer confidence falls, diners cook at home or have takeaways, whilst inflation rises impact on costs and wages rise.
“With the business rate multiplier so high at nearly 50p in the £, property costs are therefore increasingly becoming an important factor as chains decide which outlets to keep open and which to consider closing. Many companies are now asking their landlords for a reduction in rent as the physical costs of running a property become an increasing burden. Business rates are playing their part in the difficulties as some of the massive rises for particular restaurants show, particularly those in London.
“As for the high street, many former void retail units were taken up by restaurants, and if this sector is now finding the current environment tricky, one wonders about what the high street is going to look like going forward.
“Moving to three-year business rates revaluations is all well and good, but this won’t impact until after 2022. We could be seeing a significant change on the high street landscape in the meantime if nothing is done to support it.
“The Government must act now- to properly reform the system and bring the multiplier down.”
