Just Eat has today launched a manifesto and open letter signed by over 1,500 small restaurants, calling for support from the next Government across three key areas. The manifesto’s recommendations are aimed at supporting the growth of small businesses in the hospitality industry, and enhancing their resilience against a tough economic backdrop.
According to a survey of 1000 small restaurant owners conducted by Just Eat, the biggest issues impacting their businesses are increased food costs (65% of respondents), increased energy costs (56%) and the cost of living issues impacting customers (54%), showing the need for financial support where possible.
The online delivery platform identified three key asks as most urgent based on continual dialogue and day-to-day support for its 88,000 partners across the nation. Just Eat and its restaurant and retail partners contribute £3.5 billion to the UK economy each year, but should these policies be implemented the sector will be empowered to accelerate economic growth across thousands of high streets.
In its Recipe For Success manifesto, Just Eat is calling on the next government to support the following changes:
- A reduction in Business Rates to allow more hospitality businesses to qualify
Business Rates relief provided an important lifeline to hospitality during the pandemic, but with rates continuing to hinder the growth of small restaurants, Just Eat believes now is the time for further changes to the system. The platform is calling for an adjustment to the Small Business Rate Relief to allow more hospitality businesses to qualify, as well as an extension of relief periods for new businesses and a widening of the criteria for vacant property relief, to encourage new entrants to the high street.
- Support for workforce development including changes to the Apprenticeship Levy and National Insurance Contributions (NICs)
To help the sector to expand its workforce whilst managing costs, Just Eat is calling for the next Government to reform the Apprenticeship Levy to include greater redistribution of funds across the sector. The manifesto is calling for further flexibility in how this funding could be utilised, for example for apprentices of all ages, or for upskilling courses most relevant to small hospitality businesses outside of traditional apprenticeships.
The business is also calling for a targeted National Insurance Contributions (NICs) relief policy to make recruitment easier for small restaurants. This could be done through amending existing NICs relief into a graduated system so restaurants with lower turnovers would be exempt, but as these restaurants grow, the level of relief would decrease and they would contribute more, enabling them to grow sustainably.
- The creation of an Office for Small Business
Just Eat is calling for the creation of an Office for Small Business to provide tailored guidance and assistance to small restaurant owners navigating emerging local and national regulations, as well as expert advice and support on accessing funding and maximising growth. Larger businesses receive dedicated support from central government, but currently no equivalent exists for the UK’s small businesses.
Leigh Phillipson, Sales Director at Just Eat UK & Ireland, commented: “Small restaurants are the backbone of the high street supporting hundreds of thousands of jobs, bringing communities together and providing food for people up and down the country. But times are very tough for a sector faced with rising costs, labour shortages, changes in regulation and supply chain disruption. Much more needs to be done by whoever forms the next government if high street heroes are going to survive and thrive.
“We work hand in glove with these small businesses every day, which is why we’re calling for policies that support their growth. As we approach the General Election, we hope this Manifesto acts as a call to arms for the next Government to back our pledges and stand up for the sector.”
Shaf Khan, owner of chicken restaurant Munchies based in Sheffield, said: “Munchies opened its doors in 2017 and I’m proud that our business has weathered the storm in the face of a turbulent economy and other external pressures.
“But the reality is, it’s never been tougher operating a business in hospitality – despite being a core part of communities, many restaurants are struggling with rising costs, prohibitive business rates and challenges with recruiting and retaining staff. Small restaurants bring so much vibrancy to high streets yet their profits are squeezed more than ever – it’s crucial that the next government commits to supporting our sector, to ensure the long term success of restaurants like ours.”
