Ranjit Mathrani, the entrepreneur behind Masala Zone and the Michelin-starred Veeraswamy – Britain’s oldest curry house – has cautioned that America’s fast food giants are poised to dominate UK high streets.
He argues that increased employer National Insurance (NI) contributions and higher National Minimum Wage rates are putting smaller, independent restaurants under mounting pressure, while global fast food brands are better placed to weather these financial challenges.
Mr Mathrani, whose MW Eat group also includes the high-end Indian eateries Amaya and Chutney Mary, believes diners may soon struggle to find sit-down restaurants offering freshly cooked food at affordable prices. “The McDonald’s of the world and the KFCs of the world, with automation, will be less affected,” he said, emphasising that “the ones who will be most affected will be informal dining.” He suggests smaller venues are at risk of closure or conversion into US chains such as Popeyes and Taco Bell, both of which are rapidly expanding in Britain backed by private equity investors.
As a direct result of the Chancellor’s recent Budget, which raised both NI rates for employers and the minimum wage, Mr Mathrani expects to cut about 5 per cent of his workforce – amounting to around 25 staff. He has instructed management to reduce headcount, a move he labels necessary to cope with escalating operational costs and staffing expenses.
Mr Mathrani advocates for a revision of the Chancellor’s plan, particularly the decision to lower the NI threshold from £9,100 to £5,000. He argues this unfairly penalises smaller hospitality businesses that rely heavily on part-time staff, leaving them more exposed to the burden of higher employment costs. The Treasury was contacted for comment but had not responded at the time of publication.