| Topic: | Re:Re:Pavement Dining | |
| Posted by: | Paul Corcoran | |
| Date/Time: | 17/01/17 14:50:00 |
| Mark, the actual cost is actually £132 per square metre per annum and it is wrong to compare the cost of space inside the premises to that outside. The pavement tables will be usable for only about a third of the days throughout the year and mainly only at lunch time. Also bear in mind that relatively few meals will be served outside with most customers just having a coffee so the yield on them is much lower. How much profit margin they make is incidental anyway. The increase in fees are only going to cost businesses a few hundred pounds per annum which in isolation is not a big deal. The problem with this change is primarily the timing coming as it does with food costs suddenly rising around 15-20% and the rates revaluations about to hit. These businesses are under huge pressure and while some may decide it isn't worth putting tables outside it is more likely that others will close altogether. New restaurants may come in to replace them but a lot of these will be chains that are looking to show scale in an attempt to raise investment funds so don't need to trade profitably. Also remember these fees also apply to market stalls (I think) who operate on much thinner margins than restaurants and for whom the increase will make a meaningful dent in profits. |