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The downward spiral

It's rare that a shock in the world of Hospitality crosses over to the mainstream news. But with the news emerging yesterday that Le Gavroche is to close, we had one of those moments of a topic which is a something if an obsession in our industry actually becoming public, a very visible symptom of a disease which has been incubating for a fair old while now.

Talk amongst chefs has changed in the last few years, as we've navigated the successive shocks of Brexit and Covid, from who's doing what, who's rolling out, who's going for a star and are they worth it to the simpler questions: who's going under? how are you keeping going?

When the news about Le Gav broke, my sous and I exchanged a look and asked the same question, if Michel Roux can't make it work, what hope for the rest of us?

That wasn't the only closure I heard of yesterday, but it's unlikely you've heard about the other one. About nineish, just as I was ticking off my fish order, a guy arrived with a few sacks of chicken. "Have you heard we're closing?" he said. Johnson and Swarbrick, purveyors of the best quality chicken and duck in the North, and  a supplier of mine for the best part of twenty years. Shutting up shop next week. This was a lot closer to home than a London 3 star.

Over the course of a bit of a chat (for obvious reasons, he wasn't in a rush) it emerged that it wasn't so much rising costs (they've never been shy about passing those on) so much as no one to sell to "never really recovered after covid" he said.

Our industry has had a lot to contend with over the last few years (caveat for the easily irritated: this is not me saying no others have, I can only speak from experience), and the stresses and strains are starting to tell on a lot of folk. First, Brexit and half the staff disappeared, then Covid and you're shut on and off for two years, then everyone works out they can make more money stacking shelves in Lidl, wages rise as a result (nb this is not a bad in thing, industry wages weren't great, and now they're pretty good, but that money has to come from somewhere, think about that the next time you complain about paying over a fiver for a pint), then energy prices go through the roof, food prices and ingredients costs likewise. It's been a fun old tap-dance staying on top of it all.

And now, it appears, it's all coming home to roost a bit. The problems which have been common knowledge in hospo circles for the last few years are starting to be noticed by the wider public.

What are the solutions? Well, there aren't any easy ones, possibly business rates could be looked at (the industry is worth 5% of GDP, yet contributes 15% of rates), the big battle cry amongst industry pros is VAT: at a crippling 20%, that fish and chips you're kicking off at paying 14 quid for, 2.80 is straight to HMRC before you've even paid for the fish (3.25 per unit, up from 1.75 two years ago) and spuds (oh, they're twice as expensive this year cos the weather's been shit - stick climate change on the list will you), let alone staff wages and pension, the energy to cook it, the energy to light the building you're eating it in....the irritating thing about VAT on food is there's nothing to claim back. I pay VAT on a barrel of beer, I have to charge VAT on the pint, but I can at least claim the bit on the barrel back. I buy some lettuce, zero VAT, but put that lettuce on a plate and it suddenly becomes subject to an extra 20% tax. Just like that.

But I appreciate tax needs to be paid, how else is Michelle Mone going to nick it all and buy a new yacht? So I highly doubt that there's going to change any time soon.

Sunak's big idea? Takeaway pints. Cheers. And fuck off, you useless prick.

Nope, there are no easy answers. So all I would say is do support your local pubs and restaurants (not Spoons, they'll be fine). Go for a pint, go for a coffee (no, not in Starbucks, they'll be fine, too), go for a meal if your finances allow. Try not to wince at the price. You'll miss us when we're gone.



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