IT has not been an easy time for the UK’s restaurant sector.
In grim economic times such as these, discretionary spending is the focus for households looking to cut their budgets. So it is no surprise there have been plenty of casualties in the UK restaurant sector, amid protracted very tough trading conditions.
Read More: Scots restaurant group posts decline in profits
It has been a miserable decade for ordinary households, millions of which have been hammered by the Conservative Government’s austerity, through savage cuts to welfare as well as public sector pay freezes and caps.
To add to the misery of course, households have, since summer 2016, had the spectre of Brexit hanging over them. As the clock ticks and fears of a no-deal exit mount, households are very nervous.
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The DRG, the Glasgow-based restaurant group behind the Di Maggio’s and Café Andaluz chains and the Anchor Line, has shown its resilience over the years and decades. Owners Mario Gizzi and Tony Conetta continue to expand the business.
Mr Gizzi flagged the impact of a tight labour market on staff costs and the fact sterling weakness had made imported ingredients more expensive. These were among the factors behind a 31.5 per cent drop in annual pre-tax profits. Brexit looks likely to exacerbate the challenges for the UK restaurant sector on both of these fronts. People from other European Union member states play a crucial role in the UK hospitality sector.
However, The DRG’s impressive profits of £3.65m, on record turnover of £36.8m, underline the impression that its offerings appeal to consumers in both difficult and good times.
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