​Doner Shack Relocates Headquarters to the US, Citing UK Tax Challenges

The well-known kebab restaurant brand Doner Shack has announced plans to relocate its headquarters to the United States, a decision driven by what it describes as a challenging business environment in the UK. The founders have pointed to recent tax increases, including a rise in employer National Insurance contributions set for April 2025 and a persistently high VAT rate, as key factors influencing their move.

The brand launched in Glasgow in 2019 with its Berlin-inspired kebabs and has grown to include locations in Manchester and Leeds. However, the founders believe the UK’s current economic landscape stifles growth, prompting their decision to shift focus overseas.

The new base will be established in Miami, Florida, as Doner Shack prepares to launch its US franchise operation. Despite the relocation, the company has stated it will maintain a presence in the UK and explore further opportunities there, though its primary focus will now be on the American market.

Opportunities Across the Atlantic

Co-founder Laura Bruce expressed optimism about the move, citing the US’s well-established franchising market, particularly within the quick-service restaurant (QSR) sector. “We’re excited to operate in an environment that offers strong opportunities for growth and success, allowing our business to thrive, as opposed to dealing with constant setbacks we’ve seen in the UK since March 2020,” Bruce said.

Her fellow co-founder, Sanj Sanghera, echoed her sentiments, describing the US as a “much better environment” for the business. He revealed that conversations with American franchise operators, some managing over 1,000 restaurants, had underscored the vast potential of the US market compared to the relatively smaller scale in the UK.

Tax Pressures and Rising Costs

Sanghera highlighted that European hospitality businesses often enjoy VAT rates of 10% or less, in contrast to the UK’s 20% rate. Coupled with inflationary pressures in 2023 and additional costs such as higher employer National Insurance contributions and the cessation of pandemic-era business rates relief, he described the UK business environment as increasingly untenable.

“These factors have compounded the strain on our operations,” he stated. “By contrast, the US offers a much more supportive environment for businesses, and we’re already feeling more optimistic about the opportunities here.”

A Shift in Focus

Doner Shack’s ambitions in the US come after its London Baker Street restaurant, whichopened in 2023, ceased operations. While the company maintains that it will continue to explore opportunities in the UK, the pivot towards the US represents a significant shift in strategy, signalling its intent to thrive in a more favourable business climate.