Burger King boss says one in 10 UK restaurants could permanently close, putting 1,000 jobs at risk
‘I don’t think you can ever get over the top of this problem’, says Alasdair Murdoch
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The boss of Burger King UK has warned that that up to 1,600 jobs could be lost as a result of the coronavirus pandemic.
Around 370 of the restaurant chain’s 530 UK stores have reopened since the nation went into lockdown.
However, Alasdair Murdoch, chief executive of Burger King UK, has suggested the company may have to permanently close up to 10 per cent of its outlets due to economic damage stemming from the crisis.
Speaking to BBC Newcast, Murdoch said: “We don’t want to lose any [jobs]. We try very hard not to, but one’s got to assume somewhere between five per cent and 10 per cent of the restaurants might not be able to survive.
“It’s not just us – I think this applies to everyone out there in our industry.”
On Wednesday, chancellor Rishi Sunak unveiled a £30 billion support package to help boost the nation’s economic recovery, which included plans to subsidise restaurant bills throughout August to encourage people to dine out.
Mr Murdoch said that while it was an “innovative approach”, and that Burger King expected to participate, he does not believe the government schemes do enough to compensate restaurants for the combination of fixed costs and lost sales throughout the pandemic.
“I don’t think you can ever get over the top of this problem,” he said, adding that store closures would lead to between 800 to 1,600 job losses. Burger King UK currently has more than 16,500 staff.
“If we can possibly avoid it, we will,” Murdoch said, before explaining that many chains need help to re-negotiate rents, calling such payments the “decisive issue”.
He continued: “Some of these High Streets – they’re not coming back.”
Burger King is not the only food chain to be impacted by the coronavirus outbreak.
Earlier this week, Pret a Manger announced that it will be closing 30 stores across the UK following a steep fall in sales amid the pandemic.
The company reported that sales across UK shops are down 74 per cent year on year, adding that it is also experiencing a much slower recovery in the UK, in comparison to the other countries it trades in.
Pano Christou, Pret’s chief executive, said: “When the coronavirus crisis hit, we said that our priority was to protect our people, our customers, and of course Pret. We confirmed it was our intention to do everything we could to save jobs.
“Although we were able to do that through the lockdown, thanks in particular to the government’s vital support, we cannot defy gravity and continue with the business model we had before the pandemic. That is why we have adapted our business and found new ways to reach our customers.”
You can read more about the governments “Eat Out To Help Out” scheme here.
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