British Michelin-starred chef Jason Atherton has revealed that he is opening restaurants abroad to subsidise his UK venues, citing high taxes and a struggling hospitality sector. Atherton, who now operates restaurants in Dubai, St Moritz, and most recently Tuscany, said it is increasingly difficult to stay afloat in the UK.
Global Expansion to Offset UK Challenges
Atherton is currently in Forte dei Marmi, Italy, preparing to launch his newest restaurant, Maria's, located in the Principessa hotel. The Sheffield-born chef explained that countries with more favourable policies towards restaurants, pubs, and bars make it easier to turn a profit. 'I am trying to sustain our business by opening abroad. We are opening one new restaurant in the UK but we are very cautious – we are certainly not gung ho like we were five or six years ago,' Atherton said from the kitchen at Maria's.
The 54-year-old chef believes that if high taxes persist, many restaurants will not survive. 'If we didn't have a global brand we would find it tough because the UK is tough,' he stated. 'I have restaurants that are losing money. We are not asking for handouts, we are asking for a fair chance to stay alive.'
Tax Burden on UK Hospitality
Restaurants across the UK are struggling under tough economic conditions. Business rates increased this year as Covid-era reliefs expired, and the industry body UKHospitality estimates that the average restaurant will face an additional £32,000 in tax. Furthermore, VAT for UK restaurants stands at 20%, one of the highest rates in Europe, compared to the European average of around 12%. In Italy, VAT on restaurant food is just 10%. The UK government has also raised employer national insurance contributions for lower-paid employees, adding to the financial strain.
'All I know is that the tax on hospitality in the UK is the highest in Europe. Ireland VAT is 9%, we are 20%, hospitality in Ireland is booming,' Atherton noted.
Kate Nicholls, chair of UKHospitality, echoed these concerns, stating that it is harder to run a restaurant in the UK than elsewhere in Europe. 'The UK has one of the highest rates of VAT for hospitality in Europe, which puts our restaurants at a significant disadvantage to their competitors across the continent,' she said.
Atherton's Career and Current Ventures
Atherton has earned five Michelin stars throughout his career for various restaurants. His Mayfair venue, Row on 5, received a star just seven weeks after opening and was awarded two stars the following year. He initially worked with Gordon Ramsay, launching the Maze restaurant, before venturing out on his own with venues like Pollen Street Social and Berners Tavern.
In Italy, Atherton is collaborating with executive chef Giorgio Cicero. 'It is quite a personal project to me because we've been coming for 12 years as a family. I am having a lot of fun learning about Italian food,' Atherton said. When asked if he is nervous about a Brit serving pasta to Italians, he responded, 'I am a chef restaurateur who has been around the chopping block multiple times. Giorgio, who has worked with me for eight years, is now back to his homeland and together, with me, he has written a menu.'
Commitment to Affordable Dining
Despite tight margins in the UK, Atherton emphasises the importance of keeping menu options affordable. For instance, he insists on serving pints of beer for under five pounds. After seeing a news report that a pint in London costs over £7, he decided to lower his prices. 'I thought is that right? I looked at the margins and decided to knock our pint down so people can come and have a pint. We also didn't put the prices up at Row when we got two stars, they are the same as when we had one star,' he said.
Atherton added that at his Chelsea restaurant, Three Darlings, the average lunchtime spend is £30. He values the experience of dining out with family, saying, 'The thing I look forward to the most is taking my family out for lunch or dinner on my one day off on a Sunday. It is one of the most enjoyable things you can do as a human. I think if we lose that or a part of it in the UK it is devastating on every level. If that becomes a massive luxury that's terrible.'
This article was amended on 7 May 2026 to clarify that the UK's VAT rate for restaurants is one of the highest in Europe, not the highest.
