Jamie Oliver has recently announced the closure of six of his Jamie’s Italian restaurants. With the rising costs of imports, ingredients from Italy have become relatively more expensive due to the weakness of the pound. Given the relatively price elastic nature of the eating-out market, it is hard to justify higher prices on menu items, as customers have a lot of choice in terms of substitute goods, so Jamie’s Italian would have to absorb these higher costs and face lower profit margins.
The redundancies are likely to impact on the 120 staff that work in the restaurants, but the company is aiming to relocate them elsewhere within the organisation. Jamie’s Italian still has 36 locations within the UK and is looking to expand its overseas operations from 28 to 50 restaurants.
Your organisation does not have access to this article.
Sign up today to give your students the edge they need to achieve their best grades with subject expertise
Subscribe
