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Jamie Oliver's empire collapses – 22 UK restaurants to close Jamie Oliver's empire collapses as 22 UK restaurants close
(about 3 hours later)
All but three of Jamie Oliver’s 25 UK restaurants are closing with the loss of 1,000 jobs after the business called in administrators. All but three of Jamie Oliver’s 25 UK restaurants have closed with the loss of 1,000 jobs after the business called in administrators.
The company, which includes 22 Jamie’s Italian outlets, plus the Fifteen and Barbecoa restaurants in London and Jamie’s Diner at Gatwick airport, appointed executives at advisory firm KPMG as administrators on Tuesday. The closures could mark the end of the celebrity chef’s UK restaurant empire, which began with the opening of Fifteen in London in 2002.
The administration could mark the end of Oliver’s UK restaurant empire, which began with the opening of Fifteen in London in 2002. Only his three outlets at Gatwick airport, which include the last Jamie’s Diner, will remain in operation as administrators seek a buyer. Only his three outlets at Gatwick airport will remain in operation as administrators seek a buyer. A further 300 jobs, mostly at the Gatwick outlets, remain at risk.
Oliver said: “I am deeply saddened by this outcome and would like to thank all of the staff and our suppliers who have put their hearts and souls into this business for over a decade. I appreciate how difficult this is for everyone affected. Oliver, 43, said: “I am deeply saddened by this outcome and would like to thank all of the staff and our suppliers who have put their hearts and souls into this business for over a decade. I appreciate how difficult this is for everyone affected.
Jamie Oliver restaurants at risk of closing - the full listJamie Oliver restaurants at risk of closing - the full list
“I would also like to thank all the customers who have enjoyed and supported us over the last decade, it’s been a real pleasure serving you.
“We launched Jamie’s Italian in 2008 with the intention of positively disrupting mid-market dining in the UK high street, with great value and much higher quality ingredients, best-in-class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that.”“We launched Jamie’s Italian in 2008 with the intention of positively disrupting mid-market dining in the UK high street, with great value and much higher quality ingredients, best-in-class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that.”
More than 61 overseas outlets, including 25 overseas Jamie’s Italians as well as Fifteen in Cornwall, all of which are run by franchisees, are unaffected by the administration. Jamie Oliver Restaurant Group, which includes 22 Jamie’s Italian outlets, plus the Fifteen and Barbecoa restaurants in London and a Jamie’s Diner at Gatwick airport, appointed KPMG as administrators on Tuesday.
Will Wright, partner at KPMG and joint administrator, said: “The current trading environment for companies across the casual dining sector is as tough as I’ve ever seen. The directors at Jamie Oliver Restaurant Group have worked tirelessly to stabilise the business against a backdrop of rising costs and brittle consumer confidence. However, after a sales process which sought to bring new investment into the business proved unsuccessful, the team took the incredibly difficult decision to appoint administrators. More than 61 overseas outlets, including 25 Jamie’s Italians as well as Fifteen in Cornwall, all of which are run by franchisees, are unaffected by the administration.
He continued: “Unfortunately, with insufficient funds available to be able to trade the business in administration, all but the Gatwick airport restaurants have now closed. Our priority in the coming hours and days is to work with those employees who have been made redundant, providing any support and assistance they need.” A 10-year deal with US caterer Aramark to open franchise sites in universities, hospitals and other locations both in the UK and overseas is also unaffected.
The group had been seeking buyers in recent months after Oliver decided to sell up amid heavy competition in the casual dining market that has already seen chains such as Carluccio’s, Byron Burger and Gourmet Burger Kitchen close outlets. Will Wright, partner at KPMG and joint administrator, said: “The current trading environment for companies across the casual dining sector is as tough as I’ve ever seen. The directors at Jamie Oliver Restaurant Group have worked tirelessly to stabilise the business against a backdrop of rising costs and brittle consumer confidence.
The administration comes after sales at Jamie’s Italian dived by nearly 11% last year to £101m as it closed 12 restaurants and made about 600 staff redundant. “However, after a sales process which sought to bring new investment into the business proved unsuccessful, the team took the incredibly difficult decision to appoint administrators.”
Last year, the chain was only saved from bankruptcy by a last-minute £13m injection of cash from Oliver, part of almost £17m of new funding provided to keep the restaurants afloat. Wright said that all but the Gatwick outlets had been closed as there had been “insufficient funds available” to continue to trade the rest of the business.
Oliver got his big break when a visiting TV crew spotted him while he was working at the River Cafe in Hammersmith in 1997, leading to his own show The Naked Chef. “Our priority in the coming hours and days is to work with those employees who have been made redundant, providing any support and assistance they need,” he said.
Since then he has built a TV, publishing and restaurant empire which has had its ups and downs. The Essex-born chef has admitted that 40% of his business ventures were failures. All restaurant staff salaries will be paid up until Tuesday according to the administrator.
In 2015, Oliver shut the last branch of Recipease – his chain of cookery shops – and the last of his four British-themed Union Jacks restaurants went the same way two years later. In October 2017, his food magazine, Jamie, ceased publication after almost 10 years. Jamie Oliver’s restaurant group had been seeking buyers in recent months after the chef decided to sell up amid heavy competition in the casual dining market that has already seen chains such as Carluccio’s, Byron Burger and Gourmet Burger Kitchen close outlets.
The business empire slumped to a loss of nearly £20m last year, dragged down by a grim year at the restaurant chain. A boom which increased the number of chain restaurants by a quarter in five years has come to an abrupt end with about six net closures a month in the past year. In March, Britain had a total of 5,785 chain restaurants, 1.1% fewer than the same month last year, according to research by CGA and advisory firm AlixPartners.
Oliver’s media business, which includes his cookery books and TV shows, continues to thrive, according to accounts published last year, but his licensing business, of which he owns more than half in partnership with other investors and includes cooking equipment and homewares, has also seen profits fall. Full service restaurants like Jamie’s Italian are bearing the brunt of the change in behaviour with sales down 6% year on year, according to market research firm Kantar.
Simon Quirk, consumer specialist at Kantar, says that as economic and political uncertainty have dented confidence, diners have been reluctant to splash out on premium meals. They have switched towards cheaper treats at coffee shops and cafes or gone for more exciting experience such as dine-in markets or in-store cafes that are part of a whole day out.
The administration of Oliver’s restaurant group comes after sales at Jamie’s Italian dived by nearly 11% last year to £101m as it closed 12 restaurants and made about 600 staff redundant.
The collapse of the restaurant empire will be a blow to Oliver who got his big break when a visiting TV crew spotted him while he was working at the River Cafe in Hammersmith in 1997, leading to his own show The Naked Chef.
Since then he has built a TV, publishing and restaurant empire which has had its ups and downs.
In October 2017, his food magazine, Jamie, ceased publication after almost 10 years. The business empire slumped to a loss of nearly £20m last year, dragged down by a grim year at the restaurant chain.
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