Changes on the High Street

[1andrew1]

Originally Posted by denphone

Upper Crust and Caffè Ritazza owner to cut 5,000 jobs.

https://www.theguardian.com/business...up-coronavirus

Very sad.
Not good for SSP's peers either.
WH Smith thought they were escaping the woes of the high street by focusing on travel outlets. Into the furnace from the fire.

[denphone]

Originally Posted by 1andrew1

Very sad.
Not good for SSP's peers either.
WH Smith thought they were escaping the woes of the high street by focusing on travel outlets. Into the furnace from the fire.

Sadly this is just the start l fear Andrew as in the last 2 day UK firms have slashed more than 12,000 jobs.

https://www.bbc.co.uk/news/business-53247787

[denphone]

More job cuts have just been annouced as Café Rouge and Bella Italia owner falls into administration.

https://www.bbc.co.uk/news/business-53270679

Ninety one Casual Dining Group outlets will close immediately, and 1,900 of the firm's 6,000 staff will lose their jobs.

[jfman]

Originally Posted by denphone

More job cuts have just been annouced as Café Rouge and Bella Italia owner falls into administration.

https://www.bbc.co.uk/news/business-53270679

In some respects this is all good news.

We need to lose the concept of property as an asset to extract revenue from. Less high street outlets = oversupply of units and should push rents down for everyone else. In a best case scenario (if unlikely) of some being sold off to businesses who actually want to operate there. Extracting the financial sector parasite from the economy altogether.

[nomadking]

Originally Posted by jfman

In some respects this is all good news.

We need to lose the concept of property as an asset to extract revenue from. Less high street outlets = oversupply of units and should push rents down for everyone else. In a best case scenario (if unlikely) of some being sold off to businesses who actually want to operate there. Extracting the financial sector parasite from the economy altogether.

How would a business starting up, afford to buy the premises instead? Who pays for the property to be built and maintained? How would it work in a collection of units in a building?



Too much over-expansion in the cafe/restaurant sector. High risk at the best of times.

[Hom3r]

Originally Posted by Mr K

I've still.got the same £50.cash in my wallet that I took out of a cashpoint in Feb. Will we ever use cash again ?

Originally Posted by papa smurf

I did the same I've got £40 left.

Originally Posted by Sephiroth

Ditto.

I have about £60 in change and notes.

My local takeaway has always been cash only.

TBH I only use cash on items under £5 if I have change.

[papa smurf]

Originally Posted by Hom3r

I have about £60 in change and notes.

My local takeaway has always been cash only.

TBH I only use cash on items under £5 if I have change.

I got some more out of the cash machine yesterday cos i'm going to Norfolk and they don't do technology that was invented after 1970.

[jfman]

Originally Posted by nomadking

How would a business starting up, afford to buy the premises instead? Who pays for the property to be built and maintained? How would it work in a collection of units in a building?

Too much over-expansion in the cafe/restaurant sector. High risk at the best of times.

The properties already exist nomad.

How do people afford homes? Loans.

Same principles apply without the need for parasite landlords.

[nomadking]

Originally Posted by jfman

The properties already exist nomad.

How do people afford homes? Loans.

Same principles apply without the need for parasite landlords.

Not all properties are over a hundred years old. Many new shopping areas are built, especially alongside new housing developments.


What idiots are going to lend to a potential small business, especially ones of the type with a high failure rate. With homes, the funding for repayments is already in place, ie salaries.


Many businesses don't make enough to run with zero rent, so paying off a mortgage is just not going to happen.



Still leaves, who pays for the upkeep, especially common areas in a centre.

[Sephiroth]

It’s a very complex question. People might think landlords are leeches. But, particularly for large modern developments, landlords have to fund the construction. So they borrow the money and have to make repayments. Further up the chain, pension funds who have invested, receive dividends.

Dropping down the chain, tenants without customers means no oaying rent. Ultimately exposed pension funds can’t pay out.

One major mess that has yet to explode properly.

[jfman]

Originally Posted by nomadking

Not all properties are over a hundred years old. Many new shopping areas are built, especially alongside new housing developments.

The age is irrelevant.

What idiots are going to lend to a potential small business, especially ones of the type with a high failure rate. With homes, the funding for repayments is already in place, ie salaries.

Businesses get loans all the time, sometimes secured against assets - like land or premises.

(Many businesses don't make enough to run with zero rent, so paying off a mortgage is just not going to happen.

If businesses aren’t viable then they go bust - that’s capitalism with or without parasite landlords.

Still leaves, who pays for the upkeep, especially common areas in a centre.

Councils?

Originally Posted by jfman

In some respects this is all good news.

Yes, Im sure all those people losing their jobs are just delighted.

[jfman]

Originally Posted by Paul

Yes, Im sure all those people losing their jobs are just delighted.

However a more sustainable high street would result in more employment opportunities and more stable employment for those in the sector.

Short term pain for long term gain.

[heero_yuy]

Quote from The Sun:

CAFE chain Pret a Manger is set to close as many as 45 of its UK high street stores in a move that would put up to 800 jobs at risk, it has been reported.

Pret has been struggling during the coronavirus​ lockdown with the company already confirming that it's been losing "tens of millions of pounds each month".

Pano Christou, the cafe chain's chief executive, will make an announcement on the future of the stores this Wednesday, June 8, according to The Mail on Sunday​.

The newspaper reports how the move is set to impact almost one in ten of Pret's 434 UK branches, as well as up to 800 of its 8,000 employees.

A Pret spokesman told The Mail on Sunday: "We will update our team members in early July once the plan has been finalised."

[denphone]

If Pret a Manger are struggling then that bodes ill for many other businesses on the High Street.