ICSM Business News: crisis as hospitality industry is hit by cost-of-living crisis (even Rishi Sunak’s former restaurateur boss goes bust)
By Harry Mottram: Did you pay £12 for a pint of beer at the World Cup in Dubai? How about £7.60p in central London, or £12.50p in the West End or £16.50p in Chiswick for a pint of craft beer? At £80.15p a pint the Craft Beer Company in Brixton have been selling their Reforged 20th Anniversary beer for that eye-watering sum. Clearly prices have risen – at my local pub a glass of wine is now more than £7 and a packet of crisps is £1.49. Prices like these are putting people off going out but pub and restaurant owners have faced hikes in rents, interest rates, energy bills and costs from suppliers and need to at least break even. The collective fall-out is many are shutting down.
The Daily Mail reported this week on Kuti Miah, the owner of Kuti's Brasserie that has gone into liquidation owing an eye-watering £840,000 to creditors. Jessica Warren reported that the Prime Minister Rishi Sunak used to work for the hospitality firm in Southampton when he was young. The owner of the Indian restaurant has blamed the collapse of the business on the cost-of-living crisis with inflation the main cause.
Jessica Warren reported: “Filings show Joytun Bari Ltd owes £338,214.04 to HMRCs, as well as more than £270,000 to Mr Miah himself, £40,000 to Southampton City Council and £40,000 to Barclays Bank.”
The owner Kuti Miah is a personal friend of the Sunaks – the restaurant was the reception venue for their wedding, and it was also fined £1,000 for flouting Covid rules reported the Mail Online.
Ian Carrotte of ICSM – the business credit intelligence membership group – said the hospitality sector was being hit by a ‘perfect storm’ of inflation, interest rates, Putin’s war, Chinese trade issues, energy price hikes, covid-fears, the Brexit trade deal and business rates. He said: “It is interesting that inflation was cited by Mr Miah as being the main cause of his business problems. If you go to your local pub for a pint and a pie, you’ll notice prices have gone up. Likewise in the shops everything appears to have increased in price. It puts a squeeze on household finances – but for businesses inflation is crippling as financial directors need to plan ahead – but with inflation in double figures and likely to rise further it makes that task difficult. It is the reason so many businesses are going into liquidation.”
He said the numbers of businesses in the hospitality sector going to the wall had increased this winter as overheads increased as footfall fell. Below are some of the latest casualties in the industry:
HOSPITALITY: BRASSERIES, BISTROS, CAFES, HOTELS, PUBS, RESTAURANTS
ADMINISTRATORS APPOINTED
BOUJEE RESTAURANT AND BAR LIMITED 12905642
ADMINISTRATION CREDITORS MEETING
CASPIAN RESTAURANTS LIMITED 04646547
COMPULSORY LIQUIDATOR APPOINTED
MANIC BARS LTD 13408974
WHITING AND HAMMOND LIMITED 04729318
CREDITORS’ VOLUNTARY LIQUIDATION DEEMED IN CONSENT MEETINGS
AFRIKANA DERBY LIMITED 12043813
APEX HOSPITALITY LTD 07164401
BELLA VENEZIA RISTORANTE LIMITED 12398292
BLU LOUNGE LIMITED 11479425
FUNNAGE (WHITELADIES ROAD) LIMITED 12916642
GLE NOTTING HILL LTD 11469189
GLOBAL COFFEE SHOPS LIMITED 04422232
GLB BISTRO CO. LIMITED 07388740
GORDON ARMS (CHISLEHURST) LTD 10782115
HARROGATE STAZIONE CAFE LTD 13634415
HIGH STUFF LTD 10970856
SEASONS (DEVON) LIMITED 09496242
SIMPLE FLEET STREET LIMITED 13190187
SIMPLE ST PAUL'S LIMITED 12897545
THE CASTLE NEWBURY LTD 10809283
THE FONTMELL FREE HOUSE LTD 10025617
THE RED HOUSE PUB LIMITED 07379915
THE ROBIN HOOD RAINOW LIMITED 11013492
TGR BAR & RESTAURANT LTD 11882757
WAH PING CHINESE RESTAURANT (BIGGIN HILL) LIMITED 12104267
WAH PING CHINESE RESTAURANT LIMITED 11573780
WELLINGTON SPICE LTD 11231532
LIQUIDATORS APPOINTED
BALTIC LIVERPOOL LTD 12339764
BLACK MOON LTD 11590285
CAFE INDIA (SOUTH SHIELDS) LTD 08714350
CF HOTELS LIMITED 08893481
CLEARWATER PUB ESTATE LIMITED 09598176
CLUB LA COSTA (UK) PLC 03123199
COOLANGATTA CAFE UK LTD 10733659
DAWN INNS LTD 12860986
DIAMOND PUB HOLDINGS LIMITED 12836444
DISTINCTIVE PUBS LIMITED 13208025
DRAYMANS ARMS SPALDING LTD 12678390
FENG SUSHI LIMITED 03720871
HOOK RESTAURANTS LIMITED 08736820
IMPERIL BAR LTD 12278890
INDO RESTAURANT LTD 12152900
INNBAR (FOUNTAIN) LTD 09127293
LA BRASSERIE (KIDDERMINSTER) LIMITED 05715380
LONDON SKY BAR VENUES LIMITED 12415646
NORFOLK ARMS CHAPELTOWN LTD 12060682
OLD INN HOLTON LIMITED 11907060
ORIENTAL EXPRESS (MANCHESTER) LIMITED 04210360
ORIENTAL EXPRESS UK LIMITED 04049819
RCS HOSPITALITY LTD 13414728
SAN REMO GRILL LIMITED 11977307
SEEL STREET HOTEL LIMITED 10599378
SLIP INN LTD 10622199
THE 1940’S TEA ROOM LIMITED 11352272
THE BROW COW LTD 10156008
THE GLASTONBURY HOTEL LIMITED 05448154
THE SWAN HOTEL (UPTON) LIMITED 08972876
THE WELCOME HOME PUB COMPANY LTD 12736499
THE SIX BELLS INN LTD 11809913
UK CREATIVE FOOD AND HOSPITALITY LTD 10610579
VILLAGE & COUNTRY PUBS LTD 11768979
WANNACAFE LIMITED 12258846
WHITTON COMMUNITY SOCIAL CLUB LIMITED IP27534R
WINE STREET COFFEE & CAKES LIMITED 11790525
MEMBERS VOLUNTARY LIQUIDATIONS
DLH RESTAURANTS LIMITED 10302232
DOUBLEJAY HOTELS LIMITED 02179869
MERIDIAN POINT HOTEL LIMITED 04456802
THE CLOUD HOTEL LIMITED 10908262
PETITIONS TO WIND UP
ADVENTURES IN HOSPITALITY LTD 11243404
CLUB HOSPITALITY’S LIMITED 08300903
FESTIVAL HOTELS (HALIFAX) LIMITED 12605427
M & L RESTAURANT SERVICES LIMITED 06764309
NEATH WORKING MEN'S SOCIAL CLUB LIMITED RS004430
PORTSWOOD PUB CO LIMITED 11754643
SHEPHERD COX HOTELS (GRANTHAM) LIMITED 12410703
SHEPHERD COX HOTELS (LYMM) LIMITED 09590614
THE BROADWAY PUB CO LTD 12328526
THE MARINA BAY HOTEL LIMITED 10122150
THE YELLOW KITCHEN LIMITED 12364304
WOOD GREEN CHINESE RESTAURANT LTD 10346362
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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com
About ICSM Credit
ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.
For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.
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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk