Le Pain Quotidien CEO: Brexit has made London a 'difficult market'
The boss of Le Pain Quotidien has said it will focus on franchising in the UK after claiming Brexit has made London a "very difficult market" to trade in.
The Belgian chain closed its eight London cafes and one in Oxford at the end of June and the company behind its UK sites fell into administration.
All 250 staff were made redundant after the group said it had "explored every possible option to save the business".
In a statement shared with The Caterer, Le Pain Quotidien chief executive Annick Van Overstraeten said: "After Brexit, London has become a very difficult market: fewer people on the streets, higher wage costs, and a very rigid rental market, whereby rent takes up to 30% of our budget. That is not sustainable, especially with the growth opportunities we see elsewhere."
The group's café at London's St Pancras International station will remain open as its "anchor" in the UK.
"By retaining our prime location in [St Pancras] we are sticking to London and the UK," Van Overstraeten added.
"We are looking at how we can take new steps in this challenging market in the near future with a local franchisee.
"This is the foundation of Le Pain Quotidien's strategy to grow. This way of working with local partners works for us: local players know the local market best.
"We have therefore decided to fully commit further to this model in the UK as it allows us to grow sustainably."
Le Pain Quotidien said it was holding talks with potential UK partners for new franchise sites in cities, travel spots, and hotels.
The cafe chain was founded in Brussels in 1990 and trades from more than 260 locations worldwide.
It has sites in 15 countries and will open in a further five by the end of the year.
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