In breaking news this week Jamie Oliver’s restaurant chain has fallen into administration. This means that 1000 people have lost their jobs.
Out of the 25 restaurants in Jamie Oliver’s chain, 22 of them have now closed – meaning that just 3 are open in the UK.
Administrators have allowed these 3 restaurants to remain open for the short term future whilst they explore their options.
Jamie Oliver: ‘Devastated’ & ‘Deeply Saddened’
In a tweet on social media Jamie Oliver stated that he was: ‘devastated’ and ‘deeply saddened’ by the mass closure of his restaurants.
He also expressed thanks to the people who had put their ‘hearts and souls’ into the business over the many years.
Jamie’s Italian chain was launched in 2008. The goal was to improve the level of fresh ingredients used on the high street. It also sought to improve animal welfare standards.
This vision led to large growth for the restaurant chain. However its fate was sealed this week after entering into administration.
Expanding the amount of Jamie’s Italian restaurants within the UK, at a fast pace, proved to be the most costly decision for the business.
It’s reported that workers didn’t expect these closures to happen.
What Did Jamie Oliver’s Restaurant Chain Get Wrong?
Jamie’s Italian Restaurant is one of many high profile businesses to have entered into administration in the first half of 2019.
Experts say that the main reason was because Jamie’s Italian failed to keep up with the evolving trends in the restaurant industry.
There have been increases in rent, food prices, and competition since it first opened. It is argued that Jamie Oliver’s chain simply failed to set themselves apart as trends changed.
As noted above: the focus of Jamie’s Italian Restaurants was to use fresh produce, and be a leader for animal welfare rights.
This ethos set them apart, but it also became a popular ethos that many high street restaurants adopted for themselves.
They once were a leader in innovation, but it seem that they failed to progress past that point once the competition caught up.
The Warning Signs To Look Out For In A Business
When we read blogs like this on the internet it can seem like these collapses come out of nowhere.
How can all of this just happen out of the blue?…
Upon closer inspection this doesn’t seem to be a true reflection of the circumstances.
It’s reported that Jamie Oliver poured millions of his own money into the business over the past few years.
His decision was perhaps taken to help balance the recent performance of the restaurants?
Spotting The Signs Early
It goes to show that endings like this happen over a series of events.
As a business owner it is important to spot downward trends as soon as possible to avoid conclusions like this.
Businesses who need support should be considering their structures and performances much earlier, as often it is too late for real change. If business owners don’t have a clear view of the financial data then they will be fighting a losing battle.
However, it isn’t all doom and gloom: data and figures like this are available to small and medium sized businesses through affordable cloud accounting software like Xero.
Do you feel like your business could do with some extra support? Perhaps a switch to a system that allows you to see your business financials throughout the year with clarity?
If so, please get in touch below about our accountancy & bookkeeping services.
We can advise you of helpful steps to take in order to bring your financial information up to date, and view it in real-time.
This will give you the best chance at making your business better.
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