Medlar has been open for almost 15 years now, and generally is a joy to run and a source of pride for those of us who work here. It has experienced various ups and downs, acting as a bellwether for consumer sentiment.
At times of uncertainty, such as elections, referendums, stock market corrections and budget announcements, we tend to be quieter until the dust has settled. How these events unfold continues to affect us either positively or negatively, but it's often the uncertainty that's the worst.
This last year has been the hardest trading environment we've ever seen. There was a post-pandemic surge in demand, as our customers enjoyed the freedom of being able to come back to us, accompanied by a feeling that they had the means to do so. However, this slowly fizzled out, as the general cost of living spiralled, and specifically for restaurants, severe food, wage and utilities inflation pushed the price we had to charge ever higher. Unfortunately, not only did these price rises erode demand, but they were also insufficient to maintain our margins, so the worst of both worlds. The cost of wages and utilities as a percentage of total turnover now far exceeds anything a good restaurateur would have previously aimed for.
This perfect storm we found ourselves in was then compounded by tax rises in the last year. Increases to employers’ National Insurance cost restaurants around £25,000 per annum. The discount on Business Rates was also slashed at the same time. Other tax changes such as those on non-doms, Inheritance Tax and the addition of VAT on private school fees, also negatively affected us here at Medlar – although disproportionately so compared to the wider hospitality industry.
All of these factors combined have put restaurants like us in real jeopardy. However, food, wage and utility inflation appears to have stabilised over the last few months, and so I am hopeful the worst of that is now behind us. All we can really do is stay positive and continue to focus on our customers, providing them with outstanding food and service, time and time again. When times are hard it's even more important that we look at ourselves, to make sure we are offering the highest quality product at a price that represents excellent value, and so hopefully always exceeding our customers’ expectations!
Joe Mercer-Nairne
Head Chef and Co-Founder, Medlar
About Medlar
Joe Mercer-Nairne is Head Chef at Medlar restaurant in Chelsea, which he co-founded in 2011, following roles at The Savoy Grill and Chez Bruce. Medlar’s cuisine style is French based, with an emphasis on seasonal ingredients from the British Isles and Europe.
www.medlarrestaurant.co.uk
