Opening nightmare: launching a restaurant into a world stricken by Covid and Brexit

The past two years have been the hardest ever for restaurants. Amid critical shortages of staff, food supplies and even customers, can a new venture from the man behind Polpo survive?


Every morning last autumn, as he took the short walk from Farringdon station in central London to his new restaurant, Russell Norman came face to face with a ghost. The pandemic had hit the hospitality sector hard, and this stretch of takeaway outfits and dine-in burger chains was no exception. A Byron, a Coco di Mama, an Itsu – all long gone, doors locked, interiors dark. And then, just before the final right turn, the one that really hurt, the words on its signage removed but the outline unmistakable: Polpo.

The Venetian-inspired restaurant, which took its name from the Italian for “octopus”, had been a breakout success for Norman in the early 2010s. With its small plates, no-reservations policy and stripped-down interiors, the original Soho site had been credited with reinventing casual dining after the Great Recession. But then, like so many brands that emerged during the same period, it started to expand: taking on investors, extending tentacles across the UK, and then collapsing in instalments from 2016 onwards. Most of its sites were forced to close in the context of a broader casual dining crunch, as the cost of running a restaurant rose and the number of customers fell. These days, just two Polpos survive, in Soho and in Chelsea, west London, under the management of Norman’s former business partner Richard Beatty. Norman’s own departure from the project was finalised in June 2020.

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Brexit: trade survey finds 74% of British firms hit by delays with EU markets

Brexit red tape and disruption to global trade from pandemic leaves businesses ‘severely strained’

Three-quarters of British manufacturers are struggling to cope with delays in moving goods in and out of the EU amid continuing disruption caused by Brexit and the Covid pandemic, industry figures said.

Two months after the UK left the EU on trade terms agreed by Boris Johnson’s government, research from the manufacturing trade group Make UK has shown that 74% of firms in a survey of more than 200 leading industrial companies are facing delays with EU imports and exports.

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Deadly frost and war with the French: Britain’s recession of the 1700s

Economic distress caused by pandemic is the first in a very long time to have been brought about by the natural world

The chancellor has said the government will borrow a peacetime record of almost £400bn this year in the face of the worst recession the UK has experienced in more than 300 years. But how many of us know what happened at the time of that distant milestone?

Three centuries ago, Britain looked very different. The country was still largely agricultural and as such was completely at the mercy of nature – though 2020 has shown that perhaps, in a way, it still is. Nonetheless, in the early 18th century it was the success or failure of the harvest, which depended on the weather, that had a profound impact on the rate of economic growth.

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Failure to seal post-Brexit deal would more than halve UK growth, says KPMG

Accountancy firm warns of stalled economic recovery without EU trade agreement

Failure to strike a post-Brexit trade deal would cut the UK’s economic growth rate by more than half next year, delaying a full recovery from the coronavirus pandemic, according to a report.

The accountancy firm KPMG said the economy would suffer heavily should the UK fail to secure a trade deal with the EU before the end of the Brexit transition period at the end of December, just as the country attempts to escape the deepest recession since records began.

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IMF estimates global Covid cost at $28tn in lost output

World economic outlook says 2020 impact is less than thought but there will be deep scars

The International Monetary Fund has scaled back its estimate of the hit to the global economy from Covid-19 this year but warned that the final bill for the pandemic would total $28tn (£21.5tn) in lost output.

Gita Gopinath, the IMF’s economic counsellor, described coronavirus as the worst crisis since the Great Depression, and said the pandemic would leave deep and enduring scars caused by job losses, weaker investment and children being deprived of education.

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Covid-19: UK economy plunges into deepest recession since records began

GDP falls 20.4% – the worst of any G7 nation in the three months to June

Britain has entered the deepest recession since records began as official figures on Wednesday showed the economy shrank by more than any other major nation during the coronavirus outbreak in the three months to June.

The Office for National Statistics (ONS) said gross domestic product (GDP), the broadest measure of economic prosperity, fell in the second quarter by 20.4% compared with the previous three months – the biggest quarterly decline since comparable records began in 1955.

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UK to plunge into deepest slump on record with worst GDP drop of G7

Official measure to be declared this week as coronavirus lockdown shrinks GDP by 21% in second quarter

Britain’s economy will be officially declared in recession this week for the first time since the 2008 financial crisis, as the coronavirus outbreak plunges the country into the deepest slump on record.

Figures from the Office for National Statistics on Wednesday are expected to show that gross domestic product (GDP), the broadest measure of economic prosperity, fell in the three months to June by 21%.

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Economic fallout from pandemic will hit women hardest

IMF says 30 years of gains for women could be erased as recession deepens

Even before the coronavirus pandemic, there were vast inequalities between men and women in the world of work. Despite chipping away at the glass ceiling over recent decades, in 2020 the gender pay gap still remains stubbornly high, while more men called Steve and Dave run FTSE 100 companies than women.

Four months from the launch of lockdown, and as Britain slips into the deepest recession for three centuries, it is increasingly clear the economic fallout from the pandemic is having a disproportionate impact on women.

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Governments put ‘green recovery’ on the backburner

G20 countries aim their pandemic bailout spending at fossil fuel industries, leaving Paris climate change targets in doubt

Governments are spending vastly more in support of fossil fuels than on low-carbon energy in rescue packages triggered by the coronavirus crisis, new data has shown, despite rhetoric from many countries in support of a “green recovery”.

Data from the Energy Policy Tracker, a new research effort by several civil society groups, shows that at least $151bn (£120bn) of bailout cash has been spent or earmarked so far to support fossil fuels by the G20 group of large economies. Only about a fifth of this spending is conditional on environmental requirements such as reducing greenhouse gas emissions or cleaning up pollution.

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Peacetime constraints ditched in the war for economic survival | Larry Elliott

The Covid-19 outbreak is forcing politicians and central bankers to set aside ideology and orthodoxy to prevent a global collapse

It is as if the lights have been switched off. The global economy has been plunged into darkness as countries hunker down in response to the Covid-19 pandemic.

Most recessions develop gradually over time. When the last one started in 2008 it took the Bank of England six months to spot it. This time it is different. Then it was a financial virus, this time it is the real thing. Commentators often say the economy is hitting the wall or is falling off a cliff on the weakest of evidence. Today the cliches are horrifyingly true.

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