BusinessToday Previous Editions

BUSINESS TODAY 20 June 2019

Issue link: https://maltatoday.uberflip.com/i/1132126

Contents of this Issue

Navigation

Page 13 of 19

20.06.19 14 "IF Jamie can replicate this early Oxford form," wrote the Guardian's restaurant critic Matthew Norman in 2008, "he will soon be driving a prize herd of recession-proof cash cows across the land." Norman was reviewing the first branch of what would be- come a country-wide franchise, designed, in Jamie Oliver's own words, "with the intention of positively disrupting mid-mar- ket dining in the high street in the UK, with great value and much higher quality ingredi- ents, best in class animal wel- fare standards and an amazing team". Fast forward a decade, and this was the Sunday Times' Marina O'Loughlin's verdict on the "tagliatelle with truffles" at the Jamie's in Westfield Strat- ford. "Appalling, a honking, salty swamp of a sauce, brown and dusty with nutmeg. Tiny chunks, not shavings, of taste- less black truffle lurk around, like mouse poos in soup." A mere eight months after that damning review, the celeb- rity chef 's eponymous chain, along with brands Barbecoa and Fifteen, has gone into ad- ministration, putting 1,000 jobs in peril. In an email to staff on Tues- day morning, Oliver blamed "the well-publicised struggles of the casual dining sector and decline of the UK high street, along with soaring business rates," for the company's col- lapse. Administrators KPMG ech- oed this rationale, citing a tough trading environment. Shock dismissals True, the woes of so-called casual dining sector are well documented. Once seen as competitors to Jamie's, Italian chain Strada is down to just three branch- es, while Carluccio's has been forced to close approximately a third of its restaurants, af- ter losing tens of millions of pounds. Burger brand Byron, French cuisine chain Cafe Rouge, and pizza outlet Prezzo aren't far- ing much better. But staff at Jamie's were still hopeful that a turnaround was on the horizon. "We knew it wasn't doing as well as we'd want it to be," says Lucy, who worked at the Glasgow branch for more than three years. Staff, she says, were led to be- lieve that a refit was around the corner, and that taps offering Brewdog beer would soon be installed. Instead, they got a simple email. "My partner was meant to be on shift this morning," says Lucy, who asked for her real name not to be used. "He was told at the last min- ute not to come in as the locks were being changed. "We were then invited to join a conference call and told we had all been made redundant, effective immediately." Lucy and her partner, who worked at Jamie's for five years, say they feel there was a lack of transparency at the firm. "I wish they hadn't said to us that it was fine, when it obvi- ously wasn't," she says. Multiple problems But the 27-year-old is in no doubt as to what led to the chain's demise. "Firstly, the restaurants are far too big," she explains. Due to pared-down staffing numbers, on busy evenings she would be waiting on as many as 11 tables at once, while managers and chefs also felt overburdened. en there was the tie-ins with voucher schemes, such as Groupon, which attracted fick- le bargain hunters, and "didn't inspire loyalty or regular cus- tomers". Tourists and those who hap- pened to be passing by became the key clientele, says Lucy, with "very few people coming in because of excitement of be- ing at a Jamie's Italian". Despite the team's hard work, those who took the time to check local ratings on their smartphones generally stayed away too. "Unfortunately, because of the fact that it is quite expen- sive, we would not be on the top on TripAdvisor," says Lucy. "e market for chain restau- rants is dying - there are loads of places you can go in Glasgow that are cheaper." Many analysts agree, arguing that the private equity firms which developed an appetite for group restaurants over the last few years drove rapid growth in pursuit of profits, to the detriment of the dining ex- perience. Data firm CGA estimates that the number of group restau- rants in the UK increased by almost 30% to 5,785 in the five years to March 2019. Bad reviews and concerns over the quality of ingredients have also increased at many restaurant chains, including Jamie's. e firm was caught up in a meat recall by supplier Russell Hume, which the Food Stand- ards Agency found was "una- ble to demonstrate compliance with food hygiene rules". But Jonathan Woodhouse, a former manager at Fifteen in London, thinks the man at the helm is not at fault. While he concedes that the group "grew too big and tried to do too much," Mr Oliver, he says, "gets a bad rep for everything". e Italian branches, he adds, were "effectively franchises" and run very differently to the TV chef 's early restaurants. Woodhouse says working at Fifteen was "one of the best jobs" he'd ever had, and that Oliver was trying to do "some- thing special" there, with his groundbreaking apprentice- ship programme. "It's heartbreaking to hear it may go under," he adds. Jamie Oliver's restaurants were deemed too large, leaving staff to have to wait up to 11 tables each at any one time What went wrong at Jamie's Italian?

Articles in this issue

Archives of this issue

view archives of BusinessToday Previous Editions - BUSINESS TODAY 20 June 2019