London — British celebrity chef and healthy-food campaigner Jamie Oliver plans to close six of his UK Italian restaurants after pound weakness pushed up costs at branches already not serving enough people.
Restaurants in Aberdeen, Exeter, Cheltenham, Richmond, Tunbridge Wells and London’s Ludgate Hill will shut in the first quarter, a spokeswoman said.
This is the latest sign of pressures exerted on business by the pound’s drop since June’s Brexit vote. Higher costs for sourcing products such as Italian olive oil had made the branches "unsustainable," the spokeswoman said.
CEO Simon Blagden said: "As every restaurant owner knows, this is a tough market. Post-Brexit, the pressures and unknowns have made it even harder.
Branches being closed represent less than 5% of the chain’s sales and staff. The firm said it will seek other positions for the 120 affected workers.
Oliver still plans to open another 22 Italian restaurants outside the UK this year, adding to locations in countries including Australia, Brazil and Russia. He will also add two new Barbecoa steakhouses in Britain.
The business was in "very good shape", finishing last year with like-for-like sales growth and a rise in the number of diners, Blagden said.
Bloomberg
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