TGI Fridays is set to be the worst affected restaurant in London in regards to business rate revaluations over the next five years.
The restaurant chain’s rateable value will increase by a massive 106% – up from £810,000 to £1.67m, according to figures released by business rate specialists CVS.
This financial year, TGI Fridays paid £418,770 in business rates but over the next five years, even with the caps to cushion increases, its rates bill will rocket to £816,420 on average per year, equating to a five-year increase of nearly £2m.
TGI tends to operate large restaurants and operates at least six sites in the capital.
On a wider spectrum, business rates for restaurants across London are set to rise by a staggering £336.5m over the next five years.
Rateable values for restaurants across the 32 boroughs of London, including the City, have increased by £114.9m.
CVS’s surveyor analysis showed that 7,105 restaurants liable for rates in London had a combined rateable value of £395.81m based on the last property assessment in 2010, which has formed the basis of rates bills for the last 7 years, but this has increased by 36.6% to £540.71m.
This means that the amount payable under the new rateable values averaged out over the next 5 years across the sector represents a £67.3 million per year increase in tax.