THREE Michelin-hailed restaurants were all forced to shut on the same day as Rachel Reeve’s tax spikes.
The swanky venues closed before facing the “looming impact” of the Autumn budget.
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La Goccia, the Petersham, and the Petersham Wine Bar & Deli were recognised for their glam decor and Italian-style dishes.
But now the branches, which opened in 2018, will have to cut their losses as the sites face “unsustainably high costs.”
Co-founder and director of the Petersham Nurseries, Lara Boglione, told The Times they were desperately trying to find a solution.
She said with “significant cost challenges” and “legacy issues relating to the trading impact of Covid-19 and Brexit” the restaurants would struggle.
Rachel Reeve’s budget outlined an increase in minimum wage and employers’ national insurance contribution, which would increase overall costs.
With more outgoing expenses and smaller profit margins, the Petersham Nurseries brand claims it would not be able to sustain the restaurant trio.
After the budget was revealed, experts warned that venues with the lowest-paid workers would be hit the hardest by the tax rises.
Boffins from The Centre for Policy Studies said employers with staff on the minimum wage would be forced to pay £2,367 extra per worker.
Not to mention spikes in national insurance that were implemented this year.
It’s unknown what any of the venue’s staff wage is, but Peterhsham UK, the parent company, will now sell all its assets as it goes into liquidation.
The brand was born in a garden nursery of a property bought by the Boglione Family in 1977.
With its roots in Petersham House, Petersham Nursery started to take shape in 2002 and evolved into the three beloved London restaurants we know today.
Each venue offers a luxury menu and a range of high-end eats with cooking classes on offer and a lavish cocktail bar.
The Richmond garden centre is also famous for its upmarket items, and stunning leafy landscapes.
It’s been pinned as a popular filming location and even made the papers when it sold pre-decorated Christmas trees for £1,500.
Whatever profit was made with those costly Christmas trees unfortunately was not enough to pull Petersham UK through the budget.
The brand claimed their strong sales growth in 2023 was not matched in 2024 and Petersham UK put these figures down to recruitment issues stemming from Brexit.
A company spokesperson said the withdrawal from the EU left an “inability to recruit people with the right experience and skills.”
Less public spending has also affected the hospitality industry, with thousands of pubs shutting up shop.
Factors including the cost of living crisis, an increase in bills, and a rise in rent, has led to fewer Brits splashing the cash.
Without as much disposable income, fewer customers pour money into hospitality making it difficult to sustain.
It was revealed that six pubs were shut every week last year as they were hit by rising business costs.
What is happening to the hospitality industry?
By Laura McGuire, consumer reporter
