Dishoom warns that Brits’ low incomes pose risk for hospitality
Dishoom has warned that the dual effects of still-low disposable income in the UK and tax rises in last autumn’s Budget present a short-term risk to British hospitality.
The iconic restaurant business added that these factors may be exacerbated by “a possible slowdown in economic growth”.
Confidence in the UK’s hospitality sector has been in the gutter since the Budget, which increased employer taxes on wages.
The Budget also lowered the threshold at which businesses start paying these taxes, bringing part-time workers into the fold – a particular issue for hospitality, which relies on part-time workers.
UK Hospitality estimated that 69,000 jobs have been lost since last October, calling it a “hammer blow” to the sector.
In July, representatives from across the UK warned the government that high taxes were suffocating the sector – particularly for small businesses – putting ‘insurmountable burdens’ on businesses.
“Hospitality is being taxed out of existence, and that is a political choice we need to change,” Alistair Carmichael, Liberal Democrat MP for Orkney and Shetland, said.
Disposable income, too, has slumped, while April’s growth figures revealed the economy shrank beyond analysts’ expectations in 2025.
“The latest government Budget introduces several challenges for the hospitality industry… [and] consumers’ disposable incomes remain a potential risk for consumer-facing businesses,” Dishoom said.
Dishoom revenue soars despite challenges
Dishoom’s turnover in the year ended December 2024 hit £137m, with pre-tax profits up from £7.4m to £10.1m.
Turnover growth was “driven by the underlying performance of the established restaurants”, alongside the “full year contribution from two existing sites opened in [the second half of] 2023, and two new sites opened in 2024, the company said.
Dishoom has 10 restaurants, with seven in London and one each in Manchester, Birmingham and Edinburgh.
The business said its “positive momentum” has “continued into 2025”, with sustained volume growth across cafés, delivery channels, and the online store – despite the challenges.
The restaurant chain has agreed a deal for an undisclosed sum with US-based L Catterton in a move which will see founders Shamil Thakrar and Kavi Thakrar dilute their stakes.
Both co-founders are expected to stay in their roles alongside CEO Brian Trollip and the rest of the executive team.
The investment comes ahead of Dishoom opening a new US location in 2026.
Shamil Thakrar said: “We are thrilled to be partnering with L Catterton, and excited about the future of the business.
“It is wonderful to be contemplating the international opportunities ahead of us.
“As ever, even more important than growth and expansion is keeping our focus strongly on deepening our hospitality – on providing guests with the most delicious food and the warmest service in beautiful restaurants and continuing to make sure Dishoom is one of the very best workplaces in hospitality.”