The Strategist

Jamie Oliver’s restaurants in the UK announce bankruptcy

05/22/2019 - 09:53

The well-known British chef, TV presenter and restaurateur Jamie Oliver announced bankruptcy of his 25 restaurants in the UK. Experts note that Mr. Oliver’s establishments could not withstand competition from other participants of the restaurant market in the casual segment.

really short via flickr
really short via flickr
“I’m just shocked that our favorite restaurants in the UK are forced to come under external control. I’m deeply saddened by this outcome and would like to thank everyone who has been participating in our business for so many years with all their hearts and souls,” Jamie Oliver told on his Twitter. Audit and consulting company KPMG has been appointed as an external manager in the bankruptcy proceedings of the 25 British restaurants of Mr. Oliver. 

The Guardian quotes KPMG partner Will Wright, who noted that “the current situation in the market of catering companies in the casual sector is more complex than ever. Restaurant group directors Jamie Oliver worked tirelessly to stabilize the situation amid rising costs and fragile consumer confidence. Unfortunately, due to the lack of funds required to continue working under external management, all restaurants, except those located at Gatwick Airport, have now closed. Now our priority is to provide immediate assistance to employees who are out of work.” In total, Jamie Oliver’s bankrupt British restaurants employ about 1,300 people.

British observers have noted that the institutions of Jamie Oliver could not stand the price competition with other restaurants working in the style of casual, which has been actively developing in the UK lately. One of the local leisure market analysts told FT that Jamie Oliver "tried to make all his 25 restaurants special," which was hardly feasible for such networks for a long time. “If you can’t regularly visit each institution, then you should at least ensure presence of your spirit in these establishments - otherwise people will begin to have questions why they pay more than in other restaurants.” In the end, “visitors decided that Jamie’s places were rather ordinary, and not special,” the expert concluded.