Jason Atherton Opens Overseas Restaurants to Counter UK’s 20% VAT Burden

Context: High taxes are squeezing profit margins for UK restaurants, pushing some chefs to look abroad for relief. Atherton, a Sheffield‑born Michelin‑starred chef, already runs venues in Dubai, St Moritz and now Forte dei Marmi, Italy.

Key Facts: The UK applies a 20% VAT on restaurant meals, well above the European average of roughly 12% and Italy’s 10% rate. UKHospitality estimates that the expiration of Covid‑era reliefs will raise business rates, adding an estimated £32,000 in extra tax for the average restaurant each year. Atherton says he is opening venues abroad to sustain his UK operations while remaining cautious about new openings at home.

What It Means: The strategy lets Atherton generate income in lower‑tax environments to subsidise his British venues, which he says are losing money under the current fiscal load. Industry observers note that if VAT and business rates stay high, more hospitality groups may follow a similar offshore expansion model. Policymakers will need to weigh whether tax adjustments are required to keep domestic restaurants viable.

Watch for any UK government response to hospitality tax pressures and whether Atherton’s overseas openings spur further international investment by UK chefs.