Rogan, the chef behind the three-Michelin-starred L’Enclume restaurant in the Lake District, said expanding in the UK was “not a viable proposition at the moment” following the decision to give local authorities powers to impose a levy on overnight stays.
He joins a growing backlash from hoteliers, restaurateurs and hospitality groups against Labour’s tax assault on businesses, with more than 800 companies and industry figures – including Mr Rogan – signing an open letter earlier this week calling for a cut in hospitality VAT.
Rogan – whose restaurant in Cartmel, Cumbria, has 16 bedrooms – said the tourist tax added to a barrage of rising costs facing hospitality businesses, from increases in National Insurance contributions and the minimum wage to higher energy bills.
Speaking to The Telegraph, he said: “We’re under huge pressure. When you think you can’t get any worse, here comes along the tourist tax. It’s just another tax to add to the customer’s bill.
“It’s just one thing after another and it’s just like being strangled.” Rogan said the pressure on margins meant he was looking overseas for expansion, while branching out into takeaway food and catering at sporting events.
“We have no appetite for long-term investment at the moment with the way things are in the UK. We’re looking to invest abroad.” His group is also serving meals in bulk, at stadiums around the world – a business Mr Rogan said he would not previously have considered – while bolstering its takeaway operation as the cost of eating out rises. “The easiest way to have a Simon Rogan meal is to have it delivered.”
Rogan added that the shift away from traditional restaurants was necessary because of the mounting cost of running them. “The margins in our restaurants are very, very tight. To keep pushing forward, we’ve got to do other things,” he said.
“Of course, we’d love to expand in the UK but it’s not a viable proposition at the moment, unfortunately.”
“You see a lot of incredibly talented, passionate people going to the wall. Hospitality is far more than food. It’s about people, communities, producers, creating spaces where people can really connect and switch off.
“When restaurants close – and they are closing – the impact goes far beyond the dining room.”