Parisien hit with 70% rent hike to £100,000

Parisien hit with 70% rent hike to £100,000

Belfast city centre restaurant Parisien, has revealed it is facing an almost 70% backdated increase in annual rent to £100,000.

It comes at a time of growing pressures on the hospitality industry from rising operating costs, including the price of produce, and an increase to the minimum wage.

Commercial property agents Osborne King informed the restaurant, which is part of the Galgorm Collection, of the increase.

It’s understood the restaurant had been paying rent of around £60,000 but that a rent review which was due in July 2023 would now be applied, and backdated.

A letter received by Parisien’s law firm and seen by the Belfast Telegraph said: “I hereby give you notice of the landlord’s intention to review the rent to a sum of £100,000 per annum with effect from the review date exclusive or rates and other charges,.

It’s understood arbitration between the parties could be an option to resolve any issues. Osborne King did not respond to a request for comment.

The Galgorm Collection announced the purchase of the unit on Donegall Square at the side of Belfast City Hall in 2017, opening Cafe Parisien, now Parisien, later that year.

The venue closed at the outset of the Covid-19 pandemic but reopened in 2021.

Colin Johnston, managing director of the Galgorm Collection, which owns Parisien, told the Belfast Telegraph: “We’re absolutely taken aback by what amounts to an alarming annual rent hike of 66%, which will be backdated by almost a year.

“In an inflationary environment, we would have expected an upward increase but the magnitude of this has come without warning.

“Since Covid-19, we’ve worked hard to build a sustainable recovery in the face of soaring overheads including energy, rates, food and labour and this is another huge additional cost.”

Trade body Hospitality Ulster posted about the rent increase on X , saying: “Café Parisien hit with a whopping 66% rent increase backdated a year…

“Our restaurants are at breaking point and this… just adds to the further demise of our amazing restaurant offer.”

Parisien’s rising rent comes as a string of restaurants announced their closure over recent weeks, all in response to rising costs. The Windrose in Carrickfergus announced it was shutting with immediate effect last week, following hot on the heels of Belfast’s Blank.