Ivy Restaurant Group Apologises After Supplier Payment Reduction Controversy

Richard Caring, the prominent restaurateur behind The Ivy Collection and Bills, has issued an apology following a controversial letter demanding mandatory payment reductions from suppliers. The communication, which sparked significant backlash within the hospitality industry, had stipulated a 2.5 per cent “discount” on supplier invoices.

The letter, dated 3 June and signed by Jeremy Evans, head of indirect and beverage procurement, cited “current increased costs of trading” as justification for the mandatory reduction. The missive prompted immediate resistance from suppliers, leading Caring to backtrack, stating the letter “had not been approved” and was “totally incorrect”.

Nicholas Harmston, chief executive and founder of We Can Source It, expressed dismay at the unprecedented demand, revealing his company’s response was to propose a 2.5 per cent price increase and reduced credit terms. The supplier reported receiving no response to their counter-proposal.

The controversy emerges as Caring’s restaurant empire faces broader changes, with reports indicating advanced negotiations to sell a substantial portion of his UK hospitality portfolio. Sources suggest Sheikh Tahnoon bin Zayed al-Nahyan’s holding company, IHC, is poised to acquire assets in a deal potentially exceeding £1 billion.

While the mandatory reduction scheme has been withdrawn, the restaurant group maintains its intention to engage with suppliers individually to address rising operational costs. Caring emphasised the need for collaborative solutions in what he described as “an extremely difficult marketplace”.

The incident highlights growing pressures within the hospitality sector, as establishments grapple with increased tax burdens, rising employment costs, and escalating food and beverage expenses. Industry observers note this episode may signal broader challenges facing premium dining establishments in the current economic climate.