New research has found that 84% of London restaurants would be forced to close or move away from the capital should rent rises continue. The survey also found that 90% of owners believe rent rises would make their businesses “unmanageable”.
The survey carried out by property company Cedar Dean Group said that rent rises would lead to a restaurant “exodus” in Central London. Restaurants surveyed said that an average of 21% of turnover is spent on rent, with 12% considered the normal affordable rate.
The research found that the W1, WC2 and E1 postcodes saw last year’s biggest rent rises, with costs more than doubling.
Cedar Dean Group CEO David Abramson said “the numbers just don’t add up”, adding, “without intervention, the restaurants will be forced to close their doors and by the time landlords wake up it will be too late.
“One thing the last few months has shown is that high rent and rates are not just affecting businesses that need to improve but also operators that invest substantial sums in the capital city.”
Under the Landlord & Tenant Act 1954, tenants are entitled to a renewable lease on the same terms as their original one, however 150 of the restaurants surveyed said their premises was not covered by the act.