Restaurants will need to introduce sharper buying policies and to get clever with their menus in order to survive the recession, according to a top chef and restaurateur.
Speaking on Radio 4’s Food Programme, Richard Corrigan said that many restaurant operators had previously become too lazy and in the current climate they needed to focus on simplicity and adapting their menus.
“Simple is the way forward, cut down your menu. Everyone thinks that cheaper cuts of meat are bad or inferior, but what we are doing is using our skills as professional chefs.”
Corrigan, who has recently opened his second Bentley’s Oyster Bar & Grill located in Dublin, however, said that in hindsight had he known what was coming he wouldn’t have launched at this time as there was a crisis affecting the sector.
“The top 10 restaurants in London where you could never get a booking for the last five years now have tables free.
“We are an industry that survives on cash flow and what really worries me is that if it becomes so tight how do you survive - we are clearly going to have casualties.”
Luigi Laborini, the head of the 10-strong Spaghetti House chain, said that margins had come under pressure and that the company was feeling the impact of the weak pound against the strong Euro as many of its ingredients were sourced from Italy.
Discussing the growing use of promotions by many restaurant operators, Chris Wood, managing director of Toptable, said that the sector could still survive with offering 50% discounts as long as it was off food because they could generate additional revenue from wine spend and extras such as coffees.
Wood said: “Out of every £1 a restaurant makes from serving food, 30p goes on food costs, so even if they are giving a 60% discount they are still making a profit.
“Even if offers are simply done to fill up restaurants so they look busy it still works.”
