Lewis Hamilton’s plant-based fast-food chain, Neat Burger, is set to close four of its eight UK restaurants due to significant financial losses. The closures will affect locations in Liverpool Street, Canary Wharf, Oxford Street, and Westfield Stratford, leading to job losses for numerous staff members. The company reported a post-tax loss of approximately £7.9 million for the 2022 financial year, marking a 140% increase from the previous year’s losses.
Factors Contributing to the Downturn
Several factors have been cited for the downturn, including soaring property rents, the ongoing cost-of-living crisis, and the shift towards hybrid working patterns, which have reduced foot traffic in central London areas. The company acknowledged that it may have expanded too quickly, with only three of its sites currently outperforming sales compared to the previous year.
Strategic Shift and Future Plans
In response to these challenges, Neat Burger plans to focus on its best-performing restaurants, refine its menu, and support its partnership with Deliveroo to expand its delivery reach. The company is also shifting its expansion strategy towards smaller stores in high-footfall areas, as opposed to larger venues.
Despite the setbacks in the UK, Neat Burger continues its international expansion, having recently opened its third non-UK restaurant in Milan, adding to existing outlets in New York and Mumbai.
Industry-Wide Challenges
Neat Burger’s difficulties reflect broader challenges in the plant-based food industry, with several companies experiencing financial pressures due to changing consumer habits and economic factors. The company remains committed to its mission of providing sustainable, plant-based dining options and is adapting its business model to navigate the current economic landscape.
