Belfast restaurant is hit with rent increase to £100k a year

BELFAST city centre restaurant Parisien, part of the Galgorm Collection, is facing an almost 70% backdated increase in annual rent to £100,000.

Its huge rent hike 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.

A letter seen by the Belfast Telegraph was received by Parisien’s law firm at the end of last month from commercial property agents Osborne King, informing them 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.

“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,” the letter says.

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 on Wednesday night, 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.”

The Galgorm Collection, which files its accounts as Tullymore House Ltd, saw revenues double from £22.7m in 2021 to £45.1m in 2022.

Pre-tax profits also rose during that period, from £3.2m to £7.75m. The Collection has been expanding in recent years though it’s best-known as the owner of the Galgorm Resort outside Ballymena.

In 2019 it acquired the former Templeton Hotel in Templepatrick, which was relaunched after a £10m refurbishment as the Rabbit Hotel and Retreat two years later. The Old Inn in Crawfordsburn was added to the Collection in 2021 and was reopened after a revamp later that year.

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.