Restaurants could be forced to close or relocate if rents and rates continue as forecast, according to a new report by Cedar Dean Group.
The corporate and property advisers are calling for collaboration between landlords, government and leisure industry leaders to action change and implement an affordability statement.
The survey, which covered 600 restaurants in the city, reveals that almost 90% consider current costs ‘unmanageable’ and 84% say they would have to either close down or move out of central London.
The research also found that restaurants are spending an average of 21% of turnover on rent, compared to 12% five years ago. This is already more than Cedar Dean Group’s forecast for 2021 and up from 16% the previous year.
“A number of restaurants are in serious trouble at the moment, predominately related to the rents and not assisted by legislation,” says Roger Payne, Camden Dining Group CEO. “Historically, the most successful rents have been under 12% of turnover and as restaurants have needed to expand, landlords have taken advantage and rents have crept up because of demand.”