translated from Spanish: Jamie Oliver: Why went bankrupt the empire of restaurants of the famous British chef

Few would have imagined a decade ago that the empire GA Stronómico of TV star chef Jamie Oliver would fall into bankruptcy.
Oliver announced Tuesday that he is “devastated” after the 22 of the 25 restaurants in his group (including businesses such as Jamie’s Italian, Barbecoa and Fifteen) were declared bankrupt in the UK, causing the loss of 1,000 jobs.
“I understand how difficult this is for all concerned,” the chef said, while thanking the staff, suppliers and customers.
With this decision, the group of restaurants was in the hands of the firm Administradora KPGM, responsible for carrying out the legal process.
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The new administrators stated that although Oliver himself injected additional funds worth $5 million from the beginning of this year, the investment was not enough to ensure the survival of the business.
The empire was in the hands of the management firm KPGM. The sales of Jamie’s Italian fell more than 10% last year, causing the closing of twelve restaurants and the dismissal of around 600 employees.
On that occasion, the chain was only saved from bankruptcy thanks to an injection of money from the chef’s personal fortune at the last minute.
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In that context, Oliver accused the Brexit of having increased the prices of the ingredients used to prepare his Italian dishes, owing to the depreciation of the pound sterling since the June 2016 referendum.
The fame of a television star
Oliver began to gain popularity when he created his own show, the Naked Chef, broadcast by the BBC in the late 90.
Since then, he has built an empire based on television programs, publications and restaurants, as well as starring in healthy food campaigns in schools.
Jaime Oliver began his television career in the late 90. ” We launched Jamie’s Italian in 2008 with the intention of transforming in a positive way the gastronomic market of middle range in the United Kingdom, with great value and quality ingredients, the best standards of animal welfare and an incredible team that shared my passion For good food and service, “said the entrepreneur.
“And we did.”
But starting at 2015 they started the economic problems with the closure of some of their restaurants and kitchen-ware shops.
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And in October 2017, its food magazine stopped publishing after almost 10 years of circulation in the market.
How did he get bankrupt?
Simon Mydlowski, an analyst specializing in the sector, says that one of the factors that affected the chef’s business is that they failed to keep up with the changing trends of the industry.
“To be successful in this sector, you have to constantly renew yourself, from menu and beverage options, to the way you relate to customers.”
Jaime Oliver had to face high costs in the last two years. ” When you have to face higher income, higher food prices and greater competition, restaurants need to make a difference, “he adds.
“It is not a coincidence that smaller brands with greater freedom and flexibility are the ones that are having good results.”
On the other hand, Oliver’s group is one of the last victims of a complex commercial scenario in the UK.
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Earlier this year, the coffee chain Patisserie Valerie was declared bankrupt, with the partial closure of their premises and the loss of almost 1,000 jobs.
Other intermediate-range chains that have faced similar situations in recent years have been Byron Burger, Prezzo and Carluccio’s.

Original source in Spanish