In administration

[Aspman]

Bella Italia hs gone titsup

 

https://www.theguardian.com/business/2020/jul/02/bella-italia-owner-falls-into-administration-with-loss-of-1900-jobs

 

"The owner of the Bella Italia, Café Rouge and Las Iguanas restaurant chains has collapsed into administration, with the immediate loss of 1,900 jobs."

[edbostan]

It's a crowded market. There is a Decathlon near us and they stock about everything for every sport and pastime

[gadgetman]

57 minutes ago, Aspman said:

Bella Italia hs gone titsup

 

https://www.theguardian.com/business/2020/jul/02/bella-italia-owner-falls-into-administration-with-loss-of-1900-jobs

 

"The owner of the Bella Italia, Café Rouge and Las Iguanas restaurant chains has collapsed into administration, with the immediate loss of 1,900 jobs."

Sadly another brand struggling before Covid 

[Aspman]

3 hours ago, gadgetman said:

Sadly another brand struggling before Covid 

 

I feel sorry for the employees but it does seem that we are having a clear out of the premium "casual dining" sector which charged a lot whilst not delivering very much.

 

Franky and Bennys being the prime example (up here anyway the others are less common). Pretty ordinary food for proper restaurant prices and service which was usually not that great. I stopped going a long time ago since it just wasn't good value.

Edited 3 July, 2020 by Aspman

[gadgetman]

1 hour ago, Aspman said:

 

I feel sorry for the employees but it does seem that we are having a clear out of the premium "casual dining" sector which charged a lot whilst not delivering very much.

 

Franky and Bennys being the prime example (up here anyway the others are less common). Pretty ordinary food for proper restaurant prices and service which was usually not that great. I stopped going a long time ago since it just wasn't good value.

Sadly most dining restaurants had to offer deals either themselves or via the likes of Tastecard, Meerkat etc. 

 

When you can get 2 for 1 not only does it devalue the brand, but customers then vote with their wallets when they cannot get a discount. 

 

For the last few years, discount schemes are the only way many in hospitality got bums on seats, or heads on beds. 

 

Coupled with people tightening their belts as they did in 2008, and you start to see this is unlikely to be the V shaped bounce of the economy that we're told it is. 

 

A second spike this side of Christmas could see hefty job losses and upto 60% of HORECA businesses will close. 

 

A colleague who knows someone in one of the pub associations told us during our morning huddle that the sector is bracing for an immediate loss of 15-35% of jobs in the pub and dining sector by the start of August. 

 

This will then impact the high Street, with pretty much everyone struggling to cover their running costs. 

[cheezemonkhai]

8 minutes ago, gadgetman said:

Sadly most dining restaurants had to offer deals either themselves or via the likes of Tastecard, Meerkat etc. 

 

When you can get 2 for 1 not only does it devalue the brand, but customers then vote with their wallets when they cannot get a discount. 

 

For the last few years, discount schemes are the only way many in hospitality got bums on seats, or heads on beds. 

 

Coupled with people tightening their belts as they did in 2008, and you start to see this is unlikely to be the V shaped bounce of the economy that we're told it is. 

 

A second spike this side of Christmas could see hefty job losses and upto 60% of HORECA businesses will close. 

 

A colleague who knows someone in one of the pub associations told us during our morning huddle that the sector is bracing for an immediate loss of 15-35% of jobs in the pub and dining sector by the start of August. 

 

This will then impact the high Street, with pretty much everyone struggling to cover their running costs. 

 

I'll miss cafe rouge, but only because you could get a nice, not too expensive croque for lunch without having to book.

I do agree though, there were far too many places trying to charge high prices for poor food/service and then discounting to get people through the door.

 

Plenty of these were basically bust before COVID, but cheap credit was keeping them on life support.

Whilst it is sad they go, those who are left and new businesses will be stronger as there will still be customers will want to eat out, but there are fewer choices and those that have failed tend to be multi unit chains.

I don't have a crystal ball, but a relatively large drop in the number of available seats, could well be a good thing in the medium to longer term.

 

A second wave is almost certainly coming, so it's just a case of when.

As for the job cuts, people will likely blame furlough being tapered and it certainly hurts, but it had to be tapered at some point and without the scheme these people would likely all have gone when COVID kicked off.

 

Hopefully there will be jobs out there once this passes and training available as an option to those who need it.

 

 

[@Lee]

4,000 Boots staff to go and they're closing 48 Boots opticians citing Corona. (On LBC Radio just now) 
And 1,300 at John Lewis and eight stores. Retail's going to take a hammering by the looks of it sadly.
https://www.bbc.com/news/business-53348519

Edited 9 July, 2020 by Lee01

[StevesTruck]

45 minutes ago, Lee01 said:

4,000 Boots staff to go and they're closing 48 Boots opticians citing Corona.

 

Guessing everyone's just going to Barnard Castle instead?

[Aspman]

1 hour ago, StevesTruck said:

 

Guessing everyone's just going to Barnard Castle instead?

 

https://www.brewdog.com/uk/barnard-castle-eye-test-12

 

 

It looks like the high street bloodbath is just getting started.

[@Lee]

Burger King and Rolls Royce also
https://www.dailymail.co.uk/news/article-8505037/Burger-King-forced-permanently-shut-one-ten-UK-outlets.html?ito=social-twitter_dailymailUK

[cheezemonkhai]

If we are honest a lot of the highstreet was screwed before by a number of factors:

 

 - Internet shopping

 - Physical shops having a different tax burden to online

 - Drop in footfall

 - Too many companies for the markets they were in, meaning everyone was in a race to the bottom.

 

Covid just meant that those that were hanging on in the hope of surviving won't be able to.

 

The job losses are very sad, but not really unexpected.

 

Boots closing their opticians stores isn't a huge surprise to me if I am honest.

We have a big boots here, with an opticians in store.

We also have a boots opticians store and a boots hearing store.

 

With rates so high and general footfall down, it made sense to move all of the facilities under a single roof to save rents and rates.

That's all that is happening now, possibly accelerated, with COVID as a helpful fall guy as well as a cause for acceleration.

 

Carphone now are online and a brand in a shop.

 

It wouldn't surprise me if some shops take the mini department store approach, not of having everything under one roof, but of pulling seperate organisations under one roof. As an example - PCW/Currys basically could have a store with a Carphone section, a PCW section, a Currys area and a tech help area under the roof of a single store, the size of an existing one.

Between 2-4 stores, just became one store, with all the rates, rents, overhead reductions and sadly some laying off of excessive staff.

 

If you look at RR, it isn't surprising as many of their customers are gone for however long it takes the airlines to recover. They still have services business and I am sure other things too, but when a huge chunk of the business has no customers for a while, staffing has to reflect that to save the larger company.

 

Retail, as above. BK wise, I thought a lot were franchises and with a drive towards healthier eating and I imagine people enjoying having the money they didn't spend it's a downward trend.

 

It's been a while since I ate a BK (Long day of travel with no time for lunch, so maybe not the cheapest outlet), but a meal there costs not far off a meal at one of the casual dining places mentioned above. That's not sustainable when McD's are certainly much cheaper and KFC too.

 

So, yes it's sad to see these jobs go, but I'm not sure any government could do a lot about it as the demand just wasn't there and COVID just made that extra clear.

 

 

 

 

 

Edited 11 July, 2020 by cheezemonkhai
Typo

[Aspman]

The high street shops have to pay big business rates, it makes the internet only operations much cheaper to run. The high street can't compete on that uneven a playing field.

It's also why you see so many indy shops close after 1yr, that's because their rates relief ends and suddenly they get hit with massive bills.

The councils usually get the blame for this but rates are set by central government.

 

 

 

 

[shyVRS245]

Our stores only generate a small amount of business compared to the online side of our business which has been busy now for the last 5 months when spring and early summer are normally quieter for toy sales this year it has busier than the last 3 years almost entirely due the lockdown all over Europe not just in the UK. We will be getting our usual 2% annual pay increase soon to reflect how well the business continues to perform.

[NJRJ]

6 hours ago, shyVRS245 said:

Our stores only generate a small amount of business compared to the online side of our business which has been busy now for the last 5 months when spring and early summer are normally quieter for toy sales this year it has busier than the last 3 years almost entirely due the lockdown all over Europe not just in the UK. We will be getting our usual 2% annual pay increase soon to reflect how well the business continues to perform.

2% pay rise when you've done nowt more than go back and re-infect people? (even if it was man flu - that's bad enough!) you needed jailing, not rewarding.

And you  claim to be a key worker (with letters to prove it) is just so far beyond funny!

[@Lee]

I've been in Germany a while now and I was amazed to find out that they also have Amazons and ebays and other stores languishing in the wonders of Tim's wonderful internets.
What I have noticed is that while some people use those Amazons and ebays with the .de ending, I haven't seen a single physical store close in my *checks calendar* 19 months here in the town where I live.
What I have done ONCE in those 19 months is pay for parking in a larger town 15KMs away. It was €1 and I was there for 1 hour. If I'd made a purchase over X €s it would have been free.
What you get here is a kind of honour system. You buy a display for your car from the local wherever (sold in all sorts of shops cost a €1 or so), set it to the time you arrive and leave it on display in your windscreen. You usually get a max of two hours and anything after that a ticket I believe. Maybe something worth the UK Government looking into if they want to get people back into physical stores because it looks like Bezos et al aint gonna be coughing up anytime soon.

 
 

Edited 11 July, 2020 by Lee01

[john999boy]

I have used the ‘display system’ in a few UK towns too and would agree that it is beneficial to the driver, towns and shopkeepers. Sometimes out of the box thinking benefits more people than just parking revenue. 
 

Just for info as I can’t remember what was claimed in the exact post, but Shy was (or at least should have been), classed as an ‘essential worker’ and not a ‘key worker’. 

[@Lee]

Whatever Shy's status as a watcher of TV screens/ night watchman/ bloke who waits at a gate standing next to a brazier to keep his hands warm as sweet FA happens while he spreads his covidjuice is or was, that's done and dusted. Let's move on  

[skomaz]

The parking thing is interesting as the issue is actually local authority incomes...   businesses benefit from free parking but local authorities benefit from parking charges so the LAs use it to gain income and tend to balance parking charges and enforcement chages, with a year on year increase in revenue from both.

 

What they seem to miss is that increasing parking charges drives shoppers away and reduces income for them and businesses and then its a vicious circle

Edited 10 July, 2020 by skomaz

[cheezemonkhai]

10 hours ago, john999boy said:

I have used the ‘display system’ in a few UK towns too and would agree that it is beneficial to the driver, towns and shopkeepers. Sometimes out of the box thinking benefits more people than just parking revenue. 

I have seen shops close in parts of Germany where I work, but no not on the scale of here.

 

The parking is certainly a big thing as everyone will drive in to go shopping where as here in the Uk it is a nightmare.

 

Greedy local councils don’t help on the parking front and I agree a 2 hour free parking system would be excellent for shops.

 

Don't however forget the very different German corporate tax system.

 

The UK certainly does need to reform/simplify taxes and deal with the push to ban the car/parking problems.

Edited 11 July, 2020 by cheezemonkhai

[Ootohere]

UPS , 'not in Administration;, but i wonder why.

 

Ordering from Germany and other EU countries can be great value, and delivery can be as quick as ordering in the UK, 

that is as long as UPS are not doing the delivering.

 

The seller said to arrive by the end of day on Monday so why should they bother being any quicker...

[moley]

11 minutes ago, Roottoot said:

UPS , 'not in Administration;, but i wonder why.

 

Ordering from Germany and other EU countries can be great value, and delivery can be as quick as ordering in the UK, 

that is as long as UPS are not doing the delivering.

 

The seller said to arrive by the end of day on Monday so why should they bother being any quicker...

Of all of the Couriers UPS is only one I really trust. If you package is scheduled for Monday it looks to be on schedule.

[Ootohere]

Great. 

A bike ordered at the same time came from Germany  arrived yesterday with delivery by TNT.

[moley]

54 minutes ago, Roottoot said:

Great. 

A bike ordered at the same time came from Germany  arrived yesterday with delivery by TNT.

One of my German suppliers uses UPS. I have a choice of standard service, which is 2 days or express, which is next day delivery. It all depends how much you want to pay for the delivery.

[edbostan]

13 hours ago, Lee01 said:

I've been in Germany a while now and I was amazed to find out that they also have Amazons and ebays and other stores languishing in the wonders of Tim's wonderful internets.
What I have noticed is that while some people use those Amazons and ebays with the .de ending, I haven't seen a single physical store close in my *checks calendar* 19 months here in the town where I live.
What I have done ONCE in those 19 months is pay for parking in a larger town 15KMs away. It was €1 and I was there for 1 hour. If I'd made a purchase over X €s it would have been free.
What you get here is a kind of honour system. You buy a display for your car from the local wherever (sold in all sorts of shops cost a €1 or so), set it to the time you arrive and leave it on display in your windscreen. You usually get a max of two hours and anything after that a ticket I believe. Maybe something worth the UK Government looking into if they want to get people back into physical stores because it looks like Bezos et al aint gonna be coughing up anytime soon.

 
 

My French one

[Aspman]

On 11/07/2020 at 00:36, skomaz said:

The parking thing is interesting as the issue is actually local authority incomes...   businesses benefit from free parking but local authorities benefit from parking charges so the LAs use it to gain income and tend to balance parking charges and enforcement chages, with a year on year increase in revenue from both.

 

What they seem to miss is that increasing parking charges drives shoppers away and reduces income for them and businesses and then its a vicious circle

 

It is a vicious circle.

 

Central government continually cuts council funding but continues to push central government workloads and responsibilities down to councils (and private businesses).

So you get a double whammy of less money and more to do.

 

Councils then turn to every source of funding they can which includes, licensing, parking, bin charges, etc. Anything that can be charged for will be charged for becuse there are core services (social care etc) that must be provided by law. Everything else will be cut.

 

There is no difference between Westminster and Holyrood on this. They both cut funding (or ringfence it which is Holyrood's fav trick) then pass them blame on cut services to the councils.

 

ther eis a big bomb about to go off not if you look in the guardian - https://www.theguardian.com/society/2020/jul/13/english-councils-poised-cuts-services-job-losses-loss-commercial-income

 

You can bet pretty safely that those councils were ecouraged by central gov to borrow cheap money to buy commercial properties to pave the way for further budget cuts. And tbh for a few years it has worked. Now due to Covid the commercial property sector is a total bomb scare, this will bankrupt many councils. But unlike a business we will have to pay for the bail out.

 

 

Edited 13 July, 2020 by Aspman