American junk food is taking over Britain's high streets, warns curry tycoon
American junk food chains are taking over Britain's high streets, the owner of the UK's oldest Indian restaurant has said.
Ranjit Mathrani, the founder of MW Eat, has said higher taxes and increased labour costs are playing into the hands of US fast food giants as they are better equipped to cope than smaller independent restaurants.
It comes amid the fear of sweeping restaurant closures in the wake of Rachel Reeves's Budget, which increased both employer National Insurance rates and the National Minimum Wage.
Mr Mathrani said: 'The McDonald's of the world and the KFCs of the world, with automation, will be less affected. The ones who will be most affected will be informal dining, everyday eating out for people who want table service and decent food at reasonable prices.
'It's going to affect the high street materially because the smaller restaurants will not survive, and the bigger ones will be converted into the Popeyes [US fried chicken chain] of the world, the fast food chains coming from the states.'
MW Eat runs the Masala Zone chain, which has five sites across London, as well as the high-end Indian restaurants Amaya, Chutney Mary and Veeraswamy.
Opened in 1926 by a retired British Indian Army Officer, Veeraswamy is the UK's oldest curry house and holds a Michelin Star for its cooking.
Mr Mathrani has weighed in on the debate over restaurant closures as US chains such as Popeyes and Taco Bell expand at pace across Britain, fuelled by investment from private equity.
As a result of the Budget, Mr Mathrani said his company would be forced to cut around 5pc of its workforce – equivalent to around 25 roles.
He said: 'I've informed all my management that we will have to trim the headcount, and they're working on it as we speak.
'It'll be the restaurants which are giving customer service and providing food which is of variety and quality and made on the premises. That is what will be hollowed out for mass food service.'
While Mr Mathrani does not oppose the idea of increasing NI contributions from employers, he believes the Chancellor's current plan could be tweaked so as not to specifically punish smaller hospitality businesses.
In particular, he is opposed to the Chancellor's decision to lower the threshold at which NI is paid from £9,100 to £5,000, which he believes disproportionally impacts smaller restaurant chains that rely on part-time workers.
The Treasury was contacted for comment.
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