After what many people have described as 2016 being a “ strange” year , in 2017 it seems apparent that everyone is looking for more stability and security. With Brexit still hanging over us, as well as minimum wage increases and rates, nothing is guaranteed and we’ve definitely arrived at a 'survival of the fittest' stage within a competitive market, but lets not forget that we are in one of the most dynamic restaurant markets in the world.
In essence, the Cedar Dean Group will be lobbying MP's and government hard in three key areas:
1) A rates freeze for 2017 in London
The quantum of rates increase in 2017 is simply too much for operators to get their head around. Frankly, the whole rates issue in London needs to be reviewed to avoid potentially killing the golden goose that lays the golden eggs. This may not be a long-term fix but at least it would prevent any significant damage during the course of 2017.
2) Landlords to take ultimate responsibility for Rates
At the Cedar Dean Group, we would like to urge the government to demand that landlords take responsibility of the rates liability. This would lead to landlords giving their tenants a combined package of rent and rates, so that operators can look at the total occupational costs for a fixed period. This would certainly make landlords more sensitive to the overall costs that tenants have.
3) Outside the Act Resistance
We are working on bringing together a group of six operators, who sign a two year bond to not sign leases outside the Landlords and Tenants Act. This will act as a clear message to the landlords, that there will be damaging effects to the restaurant investment market, if landlords continue to put these outside the Act leases in the long term.
We firmly believe that these three actions will really make a difference in protecting our sector to allow operator and investor confidence to allow continue growth in our exciting and diverse food and beverage market.
CEO Cedar Dean Group