Wetherspoon boss blames 'drug of branding' for Jamie Oliver closures

JD Wetherspoon chairman Tim Martin has said many of the casual dining sector's recent failures had "thought they were so groovy that the brand would do the work for them".

Mr Martin was speaking to Sky's Ian King Live programme following last week's news that restaurants set up by celebrity chef Jamie Oliver had crashed into administration .

It was the latest of many chains to have bowed out of the ultra-competitive sector, with advisory firms CGA and Alix Partners saying that 750 outlets have closed in the year to the end of March.

Mr Martin said: "I think a lot of the casual dining sector and some of the pub companies as well got seduced by the drug of branding and Jamie Oliver was the ultimate brand but there were some others were as well.

"It's not really about a brand, as someone told me 30 or 40 years ago.

"If you run a pub or restaurant it's a trade and you've got to develop the individual aspects of the business as time goes along.

"A lot of these guys thought they were so groovy that the brand would do the work for them."

He said the concept of branding had been "banned" at his chain, adding: "We're not a brand, we're only as good as our next pint.

"If you follow that philosophy you won't get everything right but you'll start to get a few things right."

This year alone, Boparan Restaurant Group has announced plans to close around a third of its Ed's Easy Diner and Giraffe outlets and Patisserie Valerie is closing more than 70 outlets.

The Restaurant Group is closing some Frankie & Benny's and Chiquito outlets or converting them to branches of Wagamama, which the group recently acquired .

Last year's casualties included Carluccio's, Gourmet Burger Kitchen, Byron, Handmade Burger Co, Strada and Prezzo, which have all closed sites.

Some analysts have said that there were simply too many restaurants serving similar dishes, many of them crowded into the south of England.

But Mr Martin said the casual dining industry was not over-saturated.

He added: "I think we're probably all willing to go out for a pint and a meal at the right price.

"I think [Jamie Oliver's chain and others] tried to get into the most expensive locations, they thought they were good enough.

"They set very high prices on their menu and they weren't experienced at running these businesses.

"But if you offer us a decent price for our pint or meal then we'll go out for one - that's the way the people are - but they just didn't manage to do it."

:: Sky's business presenter Ian King looks at why so many restaurants are failing

Mr Oliver became famous with his Naked Chef TV series but Sky News reported last week that around 1,300 jobs were at risk as remaining Barbecoa sites, Jamie's Italian in the UK, and Fifteen London headed for administration.

Jamie Oliver Holdings, which operates Jamie Oliver Limited and Jamie Oliver Licensing Limited, as well as the international restaurant franchise business, Jamie's Italian International Limited, will continue to trade as normal, as will Fifteen Cornwall, which operates under a franchise.