Business

Restaurant bosses support call for nine-month rent break

Restaurants in London have closed due to the coronavirus outbreak
PA
Joanna Hodgson
22 April 2020

Restaurant bosses have thrown their support behind a proposal for a nine-month rent free period to help hospitality businesses ride out the coronavirus crisis.

Jonathan Downey, the founder of Hospitality Union and co-founder of London Union, which runs street food venues in the capital, has written to Chancellor Rishi Sunak with a suggestion on how to help companies that have had to close sites due to the Covid-19 lockdown.

A number of bosses signed the letter, including chief executives at Burger King UK, D&D, Dishoom and Wahaca.

Downey, who warned many hospitality firms may not survive the next few months, has proposed a nine month #NationalTimeOut – a rent-free period for hospitality businesses.

It would be a period of payment postponement, where commercial property rents are pushed to the back end of leases.

Leases could be extended by nine months, if the landlord agrees, so that payments aren't lost, just postponed.

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Under the plan there is also support for landlords: “We need to grant the same push back on the next 9 months of their loan and interest payments (where the debt is secured on premises benefiting from the rent-free period).”

A Treasury spokesman said: “We’ve taken action at unprecedented speed to support businesses, jobs and our economy through these challenging times. This includes targeted support for the hospitality sector with business rates holidays and cash grants of up to £25,000 for eligible firms."

The spokesman added: “Pubs and restaurants can also benefit from our other business support measures, including the Coronavirus job retention scheme, VAT deferrals and protection from eviction for commercial tenants affected by coronavirus.”

Landlords and tenants have been trying to come up with new arrangements during the virus crisis.

Yesterday the British Retail Consortium, British Property Federation and shopping centres organisation Revo said they have proposed the Government introduces a scheme of rental support for the space that has in effect been furloughed, just as staff have been, following government-enforced closures.

Retail landlords Westfield and NewRiver said they backed the industry pleas for government support to help underwrite rents for businesses hurt by Covid-19.

Scott Parsons, regional managing director UK and Italy at Westfield’s owner Unibail-Rodamco-Westfield said: “Whilst we commend the Government for announcing business rate relief for retailers, we are also looking for the Government to support retailers and landlords with rental assistance to ensure continuity for all businesses, and to provide consumer spending stimulus packages, so that the industry can quickly get back on its feet.”

Allan Lockhart, chief executive of NewRiver said: “The measures proposed would mutually benefit both retailers and property owners, who both need each other to help maintain a thriving retail sector."

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