Administration of cafe chain is a wake-up call for eateries

The administration of café chain Pod is a wake-up call for how eateries handle their image, according to one insolvency expert.

The grab-and-go food chain – which was established in 2005 – is closing nine sites after entering administration earlier this week, with the remaining 13 sites across London being bought by the Azzurri Group.

Stephen Grant, restructuring and insolvency specialist, said: “Pod found itself no longer flavour of the month in a grab-and-go food market that is becoming increasingly cut-throat.

“Yes they are tapping into an on-trend market that fits in with busy lifestyles, but there are too many of them and their poor online reviews may have exacerbated their downturn.

“A lot of their reviews touch upon the quality of the food which, over time, will destroy any firm if it isn’t addressed head-on.

“The reality is that unless you’re at the top end of the market or invest heavily, you’re going to struggle to attract the skills required to provide an experience where the food and service is of a consistently high standard.

“The key lesson to take away from this is listen to your customers and act quickly, and keep an eye on your competition – those who do will ultimately come out on top.”

If you wish to discuss any of the issues raised in this article, please contact a member of our team.

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