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The
tables are starting to turn for London restaurants but the effects of
the recession are still being felt. That's the message according to
Business Link in London's monthly Restaurant Barometer - an online
poll of nearly 150 restaurants in the capital gauging how they are
faring in the recession.
The poll found that restaurants
continue to recover steadily. Nearly 30% of restaurants have reported
an increase in takings and customers, and a further third said it has
stayed the same on a month-by-month basis.
Upmarket restaurants in
particular are showing healthy signs of recovery with 40% reporting
increases in profit and customers this month.
The picture also looks promising
when compared with the previous quarter with 40% of restaurants
experiencing an increase in profits and customers.
However, the business environment
remains tough with the impact of the recession deeply felt, 40%
reporting losses in profit and 38% seeing less customers who are also
reducing their spend.
Ashley de Safrin, Business
Adviser for the Hospitality sector, at Business Link in London said: "This
month's poll shows that things are on the up for restaurants,
particularly the high-end sector, but that the heat is still on as
the recession bites into customer spend.
People continue to be prudent,
opting for cheaper alternatives - tap water, house wines and set
menus. Restaurants need to bear these factors in mind when designing
their menus and ordering their supplies. All costs need to be managed
very carefully backed by a strong marketing drive.
Restaurants should capitalise
on summer dining and the rising number of tourists choosing London as
their holiday destination. This is also the time when service needs
to be impeccable."
Ashley says that Business Link in
London's Barometer is an extremely useful tool and urges restaurants
to continue to use the poll on a monthly basis.
"The restaurant barometer
is easy and quick to fill in. It provides valuable insight in to the
ups and downs of the sector and enables restaurants to compare
themselves to other businesses.
While these signs are
encouraging, we are still facing one of the deepest recessions. It is
therefore crucial for business to monitor how they are doing compared
to others - if they don't want to be another flash in the pan."
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