Rising rents in London are a positive trend for developers and landlords who, after numerous years of recession, welcome the boost to income and the opportunity to engage in speculative builds.
However, for small independent businesses, the increases are less welcome, and have already led to the closure of a long standing West End restaurant – Food For Thought in Covent Garden.
One of the first exclusively vegetarian restaurants to open in the capital, Food For Thought has occupied the same Neal Street commercial property for more than 40 years and is a firm favourite of locals and visitors alike. Unfortunately, though, a recent jump in rent has seen the owner priced out of the area, with the doors are set to close for good on the 25th of June.
Waitress Laura Roberts told the Evening Standard that the closure will be the first of many in Covent Garden due to the steeply rising rents in the area, but admits a number of reasons were behind the decision.
She says; “The main one is the fact we can’t really afford to be here anymore because of the increasing rent.
“The owners are coming to retirement age and they don’t have the energy to try and find an alternative and fight for it.
“Everyone is really sad, lots of people have been there for a long time – it is a very unique place.”
Yet even the loss of a popular family-run restaurant somewhat pales into insignificance when the future of London’s iconic Chinatown is considered, as many of the traders in the area have also expressed concerns about rising rents.
Owners of the oriental restaurants between Leicester Square and Soho have warned that, as a result of this trend, the area “will disappear in five years”.
In fact, the mass exodus from Chinatown has already begun, with betting shops and fast food restaurants stepping in to fill vacant units where rents can top £250,000 per year.
Furthermore, it seems that the flood of restauranteurs closing up is set to continue – the owners of Loon Tao on Gerrard Street, for example, are now searching for alternative premises after seeing their rent climb from £160,000 to £312,000 per annum in just five years.
One of the major landlords in the area is Shaftesbury PLC which, with a total commercial property portfolio of 71 outlets in the area, saw profits grow by just under 50 per cent in the first half of last year. However, it insists that it is a strong supporter of independent restaurant businesses in Chinatown.
A spokesman said; “The company, whose ownership in Chinatown has been built up over 50 years, has demonstrated a long-term commitment to supporting the local community through its strategy of creating lively, prosperous and interesting destinations in the West End for visitors, those working in the area and residents.
“Shaftesbury continues to work with the local community and Westminster City Council, investing to maintain and enhance the area’s distinctive character and, through its long-term strategy, ensure it continues to grow its popularity with visitors and its prosperity.”
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