Renowned Glasgow restaurateur calls for city to embrace hospitality

Leading Glasgow hospitality operator Alan Tomkins has urged political leaders to embrace the potential of the industry as a mainstay of the economy as he made the case for value-added tax to be slashed for the sector, declaring that it would enhance the “life expectancy” of businesses.

Mr Tomkins, whose family own and operate city centre venues such as Vroni’s, Ralph & Finns and Malo, said trading had been “resilient” in recent weeks despite the unprecedented cost pressures facing the industry.

And in day two of our special series, Mr Tomkins declared there was an opportunity for hospitality to be supported as a key driver of the economy. He underlined the optimism still felt by many operators even though overheads are making life “really difficult”.

Mr Tomkins told The Herald: “If you look at Glasgow as an example, there so many hospitality businesses there now, and it is such a big, big part of the city. I think the council and the governments should be embracing this because I am sure it is not just in Glasgow.

“Many of the shops that are no longer there are becoming hospitality-style places, and it is a massive employer in these city centres. There has been a change – there are so many different styles of business, from the small independents to the large chain operators.

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“Glasgow really has quite a lot to offer when it comes to bars, restaurants, coffee shops, and general entertainment. And the people who open these places are optimistic. They are people who want to have a good business and want give to their customers a good time – they have a positive attitude about life.”

But he added: “The problem for businesses is, despite everybody trying to be optimistic, the overheads make it so, so difficult.”

The comments from Mr Tomkins came as a major new survey found that the Scottish hospitality industry was facing a “tidal wave of economic challenges”, as high costs force three in five outlets to scale back operations to save cash. The survey, carried out by the Scottish Licensed Trade Association, cited surging energy, food, and staff costs, with 45 per cent of operators reporting increases in their energy bills of more than 250%.

The SLTA declared the industry needs support if operators are to withstand the overwhelming challenges they are currently facing.

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And Mr Tomkins said that cutting VAT – a call that is being made with growing frequency across the industry – could be an “investment government could make” as operators struggle with costs.

The rate of VAT applied to the sector was reduced to 5% shortly after the pandemic took hold and the country moved into lockdown early in the pandemic but has been restored by the UK Government to the normal rate of 20%.

Mr Tomkins, who said there is a limit to how much consumers will accept in price rises that have been put through by operators to recoup costs, noted: “If VAT was reduced for hospitality, it would really reinforce the business and give it more life expectancy. I think there is an argument for that.

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“If I had a wish list for hospitality to be helped and to reward it for the people who keep creating the businesses and the sites, it would be a complete reassessment of the [business] rates and VAT to be looked at, particularly for food sales in restaurants.

“I think that would be such an investment by the authorities and the government that they would actually create longevity for these businesses. They are developing and are becoming part of the culture of city centres and employing so many people.

He added: “It seems now that city centres in particular are getting more hospitality-style business within them. It is all about keeping these premises full and not having empty shops. Anything that can keep the generation of that should be rewarded. That is why I think it should be embraced.

“Hospitality is a massive employer now.”

Despite the current challenges, there continues to be a steady stream of new hospitality businesses opening in the city. Research published by property firm Savills last month found there were 23 new openings in Glasgow last year, making it the busiest year for new launches in five years. The property firm stated that operators were taking a long-term view of the city’s prospects, though it did acknowledge that outlets had also closed last year amid the profound cost challenges.

Mr Tomkins said: “A lot of the sites [highlighted by Savills] are reincarnations, but that said people have still got the drive, the energy, and the expectations that they can actually create a business in them, which I think is to be applauded.”

Mr Tomkins added that he is “not surprised at all” to see people continuing to enter the industry.

He said: “I think hospitality has done a good job in the last decade or so about presenting itself as an opportunity – not just a stepping-stone from job to job.

“And employers do create an atmosphere that this is a long-term job and we are definitely investing more in training people and giving them opportunities to move up the ladder.”

Mr Tomkins added: “We have been very fortunate that our job retention has always been really good.

“But we do see it from the attitude of people working with us – they are staying longer and we appreciate them staying with us, because there is nothing worse than having to replace people on a regular basis.

“The employers know they have to invest in their teams, and it is presenting a better image for the whole business.”

Tomorrow: Tackling staff shortages to avoid the costs of missed opportunities