AN ICONIC London restaurant has closed its doors due to “unsustainably high costs”.
The luxury eatery is the latest in a series of closures as financial pressures mount on family businesses.
La Goccia opened six years ago on Floral Court in Covent Garden.
Known for its exciting Italian food and lavish interior, which referenced its owners horticultural heritage, it was a hib for food-lovers and tourists.
However, on Sunday, the Petersham-owned restaurant suddenly closed.
According to management, the restaurant had struggled with “unsustainably high costs” while battle property costs and debt.
They added that they were anxious about the “looming impact of the recent Budget”.
In her October 2024 budget, Chancellor Rachel Reeves increased national insurance contributions for employers and increased minimum wage.
Critics of the budget argued that this would increase costs for businesses, but Reeves insisted at the time that the move would support workers and stabilise the economy.
The Italian restaurant also said that two other major events caused them to close.
They said they decided to put their shutters down due to years of “significant cost challenges” caused by “covid and Brexit”.
They told the Telegraph that they were unable to “recruit people with the right experience and skills” after Britain left the EU, adding to their business woes.
The restaurant is owned by the Bolgione family, who launched their brand from their 17th century mansion Petersham House.
Their luxury home was used as a set in the hit new Bridget Jones film.
Another one of their restaurants, The Petersham in Covent Garden, will also be closing its doors for the same reasons as La Goccia.
The Petersham, which shared a terrace with La Goccia, had been awarded with a Michelin star.
The news comes as the UK economy unexpectedly grew by 0.1 per cent at the end of 2024, with Reeves cheering that the economy was recovering.
A year earlier, under Rishi Sunak’s government, the economy had shrunk by 0.3 per cent.
In light of the news, Reeves said: “After 14 years of flat-lining living standards, we are going further and faster through our plan for change to put more money in people’s pockets.
“That is why we are taking on the blockers to get Britain building again, investing in our roads, rail and energy infrastructure, and removing the barriers that get in the way of businesses who want to expand.”
What is happening to the hospitality industry?
By Laura McGuire, consumer reporter
MANY Food and drink chains have been struggling in recently as the cost of living has led to fewer people spending on eating out.
Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.
Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny’s closing branches.
Some chains have not survived, Byron Burger fell into administration last year, with owners saying it would result in the loss of over 200 jobs.
Pizza giant, Papa Johns is shutting down 43 of its stores soon.
Tasty, the owner of Wildwood, said it will shut sites as part of major restructuring plans.
