Gaucho restaurant boss claims steaks would have to cost £100+ to cover rising energy bills
The hospitality chief behind the Gaucho steak restaurants has said his venues would have had to charge beyond £100 for steaks in order to cover energy costs if they were not fixed.
Restaurant bosses have urged the new Prime Minister Liz Truss to issue emergency support for the sector as some venues grapple with bill increases of up to 400 per cent this winter.
Martin Williams, the CEO of brands M Restaurants and Gaucho, has said sky-rocketing energy bills risk closure for many “independent restaurateurs, startups and founders.”
Williams’ Rare Restaurants business has fixed energy prices across 22 venues but would have otherwise suffered a £3.5m hit to profitability, he said.
“To maintain margins this would mean steaks would have to triple in prices to beyond £100,” he added.
“Food and wage inflation, plus ridiculous [tax] rates have already wiped practically all profitability out of our sector – now energy costs will simply mean closure for many SME’s – unless the government steps in,” Williams explained.
Industry leaders have called on ministers to introduce a support package with measures including tax relief on VAT and business rates and introducing an energy price cap for businesses as there is for households.
The post Gaucho restaurant boss claims steaks would have to cost £100+ to cover rising energy bills appeared first on CityAM.
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