Richard Caring has issued an apology to the suppliers of his restaurant enterprises, following the distribution of a letter that advised of an imposed 2.5% reduction in their invoiced amounts. The letter, signed by Jeremy Evans, Caring’s head of indirect and beverage procurement, was initially sent to notify suppliers of this enforced “discount” as a measure to bolster the business amid present trading cost escalations.
The restaurant chain, which encompasses The Ivy Collection and Bills, explained the reduction was essential to ensure business resilience during these challenging times. However, after facing backlash from suppliers over this unilateral decision, Caring clarified to [The Times](https://www.thetimes.com/business-money/companies/article/ivy-owner-apologises-for-demanding-discounts-from-suppliers-thrs93hcb) that the letter was neither authorised nor reviewed by him and apologised for its content, emphasising it was “totally incorrect”.
Caring further assured that such a move would not be operationalised without full consent from each supplier and admitted the letter should not have implied a compulsory stance. While the notion of the cuts isn’t entirely dismissed, the company is committed to negotiating mutually agreeable terms with each supplier.
Nicholas Harmston, CEO of We Can Source It, a catering provider which was among the letter’s recipients, expressed his dismay, stating he proposed to increase his prices and reduce credit terms in response. Harmston was taken aback by the demand, noting he had never encountered such a request in over a decade of service.
The restaurant group had initially justified the discount citing various industry pressures, such as an [increased tax burden](https://bmmagazine.co.uk/news/bailey-warns-employer-tax-hikes-may-delay-interest-rate-cuts/), employment costs, and rising prices of both direct and indirect goods and services. The letter concluded by inviting suppliers with concerns to engage with the business.
Meanwhile, the apology emerges as Caring is involved in advanced negotiations to divest a major share of his UK hospitality holdings to a company controlled by Sheikh Tahnoon bin Zayed al-Nahyan. As reported by the Financial Times, the potential transaction with Sheikh Tahnoon’s IHC could surpass £1 billion.
Further details can be found in [this article](https://bmmagazine.co.uk/news/ivy-owner-apologises-for-demanding-discounts-from-suppliers).
