Early signs of recovery for London restaurants

The tables are starting to turn for restaurants in the capital but the effects of the recession are still being felt, according to the London Restaurant Barometer.

In an online poll of nearly 150 restaurants in the capital, nearly 30% have reported an increase in takings and customers, and a further third said it has stayed the same on a month-by-month basis.

Upmarket restaurants in particular are showing healthy signs of recovery with 40% reporting increases in profit and customers this month.

The picture also looks promising when compared with the previous quarter with 40% of restaurants experiencing an increase in profits and customers.

However, the business environment remains tough with the impact of the recession deeply felt, 40% reporting losses in profit and 38% seeing less customers who are also reducing their spend.

Ashley de Safrin, business adviser for the hospitality sector, at Business Link in London said: "This month's poll shows that things are on the up for restaurants, particularly the high-end sector, but that the heat is still on as the recession bites into customer spend.

"People continue to be prudent, opting for cheaper alternatives – tap water, house wines and set menus. Restaurants need to bear these factors in mind when designing their menus and ordering their supplies. All costs need to be managed very carefully backed by a strong marketing drive.

"Restaurants should capitalise on summer dining and the rising number of tourists choosing London as their holiday destination. This is also the time when service needs to be impeccable."

Words: Clare Riley

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