London restaurants struggle as costs rise and spend falls

By Becky Paskin

- Last updated on GMT

Related tags: London restaurants, Marketing, London

Cautious consumers are spending less when they eat out
Cautious consumers are spending less when they eat out
Despite most London restaurants making a small profit during September, many claim rising costs and cautious consumer spending is causing their business to struggle

Despite most London restaurants making a small profit during September, many claim rising costs and cautious consumer spending is causing their businesses to continue to struggle.

According to the monthly Restaurant Barometer, released by Business Link​, the good weather and the start of the school term helped customer spend equal that of August 2009, although 53 per cent of London restaurants reported a decline in takings and covers when compared to September 2008.

Three-quarters of respondents claimed that while their restaurants are continuing to remain profitable, returns were small and costs were rising.

One restaurateur said: “Everyone’s struggling at the moment. There are too many things to have to pay for, everyone’s charging extra… We can’t pass on the cost to the customer as they’re looking for a discount and the rent keeps going up.”

The Restaurant Barometer also found that just half of London businesses had a website, a tool considered key for successful marketing and advertising by Business Link. The report also advised restaurants to maintain a database of customers for use in promotional activity.

Related topics: Trends & Reports

Related news

Spotlight

Follow us

Hospitality Guides

View more

Featured Suppliers

All suppliers