Hospitality shocker: Jamie Oliver’s restaurants go into administration

by | Jun 4, 2019 | General News

James Trevor Oliver, one of Britain’s most celebrated chefs.

Shockwaves ripple through the hospitality industry as renowned chef’s restaurant chain collapses

The hospitality industry is left reeling after celebrity chef Jamie Oliver announces his restaurant chains have gone into administration.

The high street brands Fifteen, Barbecoa and Jamie’s Italian have all been hit, costing around 1000 jobs.

We find out more.

J. Oliver hitting headlines for all the wrong reasons

Jamie Oliver, the celebrity chef known for trying to improve school dinners and bringing quality and affordable food to the high street, is back in the news, but not for reasons he will be happy with.

The Naked Chef has expressed his devastation at the closure of an incredible 22 out of 25 restaurants in his restaurant group last week, costing a whopping 1000 jobs across the F&B sector.

The news of Oliver’s restaurant empire collapse came as a shock to the industry, with the sudden news that most of the Fifteen, Barbecoa and Jamie’s Italian restaurants were going into administration hitting the news in the middle of last week.

Tough times for the F&B sector

As everyone in the hotel industry knows, it’s tough going for F&B outlets, especially those within hotels themselves, but also on the high street.

Chains and multi-outlet eateries often struggle after rapid expansion, where owners and operators opt to ride high on a wave that then burns out way too fast.

High street chains, restaurants and hotels in general are being hit by economic uncertainty and the drama of a still unknown Brexit.

While customers are still consuming the hospitality industry’s services and goods, deals are not being made and investments are being held back.

In the case of Jamie Oliver’s restaurant group, the chain expanded at lightning speed, but then seemed to get stuck in a bubble. The group was unable to evolve with the changing times and keep up with F&B trends, something of key importance in the hotel industry.

In a statement, Oliver said he was “devastated” by the closure of the restaurants and loss of jobs, “We launched Jamie’s Italian in 2008 with the intention of positively disrupting mid-market dining in the UK High Street, with great value and much higher quality ingredients, best-in-class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that.”

However noble this endeavour was, it ultimately proved to be part of Oliver’s restaurant empire’s downfall, as the high rents demanded in high street locations are ever-increasing and the offering of these F&B establishments can often seem out of step with current trends.

Administrators KPMG said, “The group had recently undertaken a process to secure additional investment into the business and, since the beginning of this year, Jamie Oliver has made available additional funds of £4m to support the fundraising. However, with no suitable investment forthcoming and in light of the very difficult current trading environment, the directors resolved to appoint administrators.”

[ssba-buttons]

Related articles

[wpspw_post design="design-7" grid="3" show_author="false" show_date="false" show_category_name="false" show_tags="false" show_comments="false" show_content="false" taxonomy="post_tag" limit="3" category="398, 378" pagination="false"]

SHARE

[tweetshareinline tweet=”Shockwaves ripple through the hospitality industry as renowned chef’s restaurant chain collapses” username=”tophotelnews”]

MORE NEWS

[wpspw_recent_post_slider design="design-13" show_author="false" show_date="false" show_tags="false" show_comments="false" show_content="false" dots="false" slides_column="1" autoplay_interval="3000" speed="1000" limit="5" category="40"]

Newsletter

Best Stories for you

[wpspw_recent_post design="design-7" grid="3" show_author="false" show_date="false" show_tags="false" show_comments="false" show_content="false" limit="6"]

Pin It on Pinterest