According to a recent survey, 84% of the restaurants in London will have to close should their rent rise!
Recent data collected by the property company “Cedar Dean Group” concluded that 84% of the restaurants in London would be forced to move location or close their doors should their rent have to rise. The same survey revealed that 90% of restaurant owners would consider their business to be “unmanageable” with a rent rise. This means a restaurant “exodus” could be on the cards.
The results say an average of 21% of restaurant turnover is spent on rent. However, on average only 12% of a restaurant’s turnover should go on their rent. Meaning restaurants in London are already spending over the average amount of their turnover on rent.
Some areas saw their rent rise by more than double the previous cost. Properties within the postcodes W1, WC2 and E1 saw the highest rent rise in 2017.
The Landlord & Tenant Act 1954 states that tenants are entitled to a renewable lease on the same terms as their original one. Nevertheless, 150 of the restaurants assessed said that their property was not covered by the act.
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