Regardless of the UK’s decision on June 23rd, the Cedar Dean Group’s primary focus is to serve our clients the best we possibly can. The majority of them are café and nightclub owners, their presence and survival along with landlord clients, allows the property market to continue to flourish and thrive. Struggling businesses result in empty properties and as witnessed with the frozen luxury residential market; no areas are immune to tough times.
So what do we think Brexit would mean for our clients?
Perhaps we have no choice but to remain. We are in a marketplace where all business decisions are based on last week’s turnover and the planning that will take place in leaving the European Union will create so much uncertainty that could almost result with a short term recession in Central London.
Looking into the medium term with some understanding about the banking sector, firms such as Goldman Sachs, Credit Suisse, JP Morgan and all other merchant banks rely on the UK remaining in the EU to trade their businesses successfully. In some cases, Brexit for them will mean an up to 80% reduction in their workforce in our capital city. This type of dramatic loss of high earners and affluent individuals in London will affect the whole financial district, causing a rippling effect from high end restaurants through to the rest of the sector.
The British Hospitality Association (BHA) says it has seen evidence that investors have already started to delay investment decisions in the UK, which could ultimately mean job losses. Unfortunately, the UK is not the manufacturing giant it once was however what we do have is probably the most vibrant cultural capital city in the world fuelled by a prominent financial sector. Without this, the 'air in the balloon” may burst and the UK could be marginalised.
Many of us on a personal level aren’t appeased with what the EU stands for, being governed by individuals external to our borders is somewhat unsettling and isn’t the best for our economy. Whilst our government has a huge amount of work to do to improve our economic landscape from which the EU operates from, our view is to stay in, have an innovative approach to the situation and not risk the lives of so many people and businesses.
The real question is can the restaurant sector survive a Brexit transition even if it’s what they believed in?