DELIVEROO AND MAJOR RESTAURANT BRANDS CALL ON GOVERNMENT TO TAKE URGENT STEPS TO SUPPORT INDUSTRY

DELIVEROO AND MAJOR RESTAURANT BRANDS CALL ON GOVERNMENT TO TAKE URGENT STEPS TO SUPPORT INDUSTRY

  • Deliveroo and CEOs of major restaurant partners, including itsu and Pizza Hut UK, are calling on the Government to provide further support to UK restaurants to help them through the ongoing pandemic
  • In a letter to the Prime Minister, the 330 signatories set out the need for the Government to implement urgent measures to support the hospitality sector, such as extending VAT reduction and business rates relief, and making sure key workers in the food industry are included in the second phase of vaccine rollout
  • If continued support is not provided, the signatories warn that it 'risks viable businesses failing just as the light at the end of the tunnel is becoming clearer'
  • The letter also encourages the Government to consider how the sector can be supported post-pandemic, and proposes several measures to ensure restaurants can thrive in the future

Deliveroo CEO and founder Will Shu, alongside 330 restaurant partners, have today written to the Prime Minister to call for further support in enabling restaurants across the UK to weather the ongoing COVID-19 pandemic.

The signatories, which include the CEOs of itsu, Pizza Hut UK and Rosa's Thai Cafe, collectively represent more than 1,400 restaurants across the UK. They recognise the important help the Government has provided over the past year, but argue that it is critical that financial and practical support continues in order to protect jobs in the restaurant sector.

With restaurants remaining closed for dine-in services, the industry faces immense financial pressure. The letter warns that if the Government withdraws support too early or too suddenly, it will 'risk viable businesses failing just as the light at the end of the tunnel is becoming clearer'.

In a detailed submission to the Government, Deliveroo and the signatories from restaurant partners urge ministers to take five steps to support UK restaurants to survive the ongoing pandemic. These include:

  • Extending VAT reduction: The Government should extend the VAT cut on restaurant food until the end of 2021, and consider the case for making the VAT cut permanent in future.
  • Extend business rates relief: Extending the business rates relief for a further financial year will prevent more empty premises on UK high streets post-pandemic
  • Maintain the furlough scheme: The Government can give both staff and business owners confidence about their future by committing to maintain the furlough scheme as long as is necessary for restaurants to fully return to dine-in.
  • Support businesses on rent: When the eviction moratorium ends, the Government should work to ensure that landlords are prevented from evicting tenants based on rent arrears, provided tenant businesses pay current rent obligations and agree to a payment plan to repay past liabilities.
  • Take action on testing and vaccinations: The Government should ensure that key workers in the food sector are part of the second phase of vaccine rollout - after NHS staff, police and teachers - and seek to deploy Lateral Flow Testing kits that can be administered in restaurant kitchens.

The letter also proposes policies for how the sector can be supported post-pandemic. These include a renewal of the Eat Out to Help Out scheme when it is safe to re-open restaurants; incentivising restaurants to recruit and retain staff by allowing them to take on new staff without the additional burden of National Insurance Contributions for at least six months; and the Government providing targeted relief to encourage business investment and innovation in the restaurant sector post-pandemic.

Commenting, Deliveroo CEO and Founder Will Shu, said:

"Deliveroo is committed to supporting our amazing restaurant partners through the pandemic.

"Restaurants are at the heart of our high streets and local communities and we want to play our part to help them reopen their doors when the economy opens up again.

"That is why we are calling on the Government to implement this package of measures, which will be an important lifeline for small independents and high street family favourites."

ENDS

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