Friday Five: the week's top news
- Caffè Nero has become the latest high street operator to explore a Company Voluntary Arrangement (CVA) to help it emerge from the pandemic. It is understood that the chain, which operates 660 sites across the UK, is examining a CVA as an option to reduce its rent bill and exit loss-making outlets. A final decision about a CVA is yet to be made, although sources say one is expected in the coming weeks. Last month it emerged that the business had hired KPMG to help negotiate rent cuts with landlords and review options relating to its property portfolio. The coffee chain currently employs about 5,000 people across its UK portfolio. More than 90% of the chain's outlets have reopened since the end of lockdown in June, with about 30 remaining closed for the time being.
- Henry Harris has left his role as chef director of London-based pub group Harcourt Inns. In an statement, the former Racine chef patron said he was no longer involved in the group and was currently working on a new project that he hopes to be able to announce in the near future. He said: "Dear friends, this week I stepped away from the London pubs that I have been running as chef director for the last three years and I no longer have any involvement in them. "I am very proud of what we have achieved. "A truly great team that have cooked and served great food and poured good drinks and I know will continue to do so. "I am working on a new project that I hope to be able to announce before too long."
- Scotland’s restaurants and pubs will receive only £415,000 of Government support over the country’s three-week ‘circuit-breaker’ despite it costing business over £3.5m to close, the Scottish Hospitality Group (SHG) has claimed. A survey across the SHG’s membership has found that the average cost to shut down bars and restaurants is £2,425 while additional fixed costs, stock loss and furlough charges total £5,783 per week. The typical grant support is only £693 per venue leaving a loss of £5,089 per week on top of the one off shut down costs, says SHG. With some operators running as many as 20 premises, the total shortfall across the group – which has more than 200 venues - is more than £3.5m for the three-week period. It comes as First Minister Nicola Sturgeon confirmed that Scottish restaurants and pubs operating within the lower three tiers of the country's new five tier Coronavirus alert system will be able to serve alcohol indoors again from Monday next week.
- The owner of London’s G-A-Y nightclub in Soho has 'decided not to give up' after a court refused permission for his legal challenge against the 10pm curfew to go ahead. In a statement, Jeremy Joseph said the court's decision was made on the papers submitted by G-A-Y and the Government. However, he added that there is still the chance for his lawyers to argue before a judge why the case should be allowed to go ahead and for a judge to make a different decision. "This can happen so we have decided not to give up," he said. Joseph, who also operates G-A-Y Late and Heaven in London, as well as G-A-Y Manchester, announced earlier this month that he was proceeding with his a legal challenge against the 10pm curfew on hospitality businesses after claiming the Government failed to provided any evidence to justify its existence.
- PizzaExpress is to axe a further 1,300 from across its UK estate following a decline in footfall since September and poor city centre trade. The reduction will take place through a combination of voluntary and compulsory redundancies, with job losses expected at all of its remaining 370 sites. It comes less than two months after PizzaExpress confirmed 73 restaurant closures from across its UK estate as part of a Company Voluntary Arrangement (CVA). The closures put 1,100 roles at risk, and the new losses come on top of this.
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