​Gaucho Launches VAT-Free Lunch to Advocate for Hospitality VAT Reduction

In a strategic move, Gaucho has announced it will offer a VAT-free lunch every Friday throughout March, starting on the 8th. This initiative will be available at all 10 of Gaucho's central London locations, where diners can enjoy a 20% discount on their a la carte dining bills from 12 to 4 pm. The aim is to spotlight the current rate of hospitality VAT.

This announcement aligns with the recent support from cross-party MPs for a VAT reduction in the hospitality sector, especially as the industry braces for the upcoming Spring Budget scheduled for March 6th. Moreover, Gaucho's VAT-free Fridays complement the Mayor of London's 'Off-peak Friday' campaign, which offers reduced pay-as-you-go single fares in London from 8 March to 31 May.

Martin Williams, Gaucho's CEO, commented on the challenges London restaurants face due to new tourism taxes and the increasing work-from-home trend. He urged for a VAT abolition for tourists in the forthcoming budget, stating, "After two remarkable years of over 25% sales growth at Gaucho, we're committed to giving back to the London community by encouraging more people to visit the city on Fridays."

Kate Nicholls, CEO of UKHospitality, praised Gaucho's initiative, highlighting its potential to demonstrate the benefits of a permanent VAT reduction for the hospitality sector - lower consumer prices, increased demand, and more vibrant high streets.

Since its inception in 1994, Gaucho has expanded to 20 establishments, becoming a staple in the London dining scene.

We invite our readers to share their thoughts and reactions to this initiative. Do you think VAT reductions are a viable solution for the hospitality industry's revival? Leave your comments below.