Restaurant ‘red flags’ missed

Potential problems with a restaurant working out of the South Holland Centre should have been ‘red flagged,’ according to a report.

Members of a task force established to take a close look at the centre had a ‘disappointing shock’ to accidentally discover the sudden closure of the Italian restaurant.

Members of the panel said that senior offices ‘appeared to not be in possession of the facts relating to the situation.’

“It was a disappointing shock to discover accidentally that the catering within SHC had ceased without any hint being conveyed.”
A further meeting was convened of the task group.

Moninna’s Italian Restaurant and the Platter & Pour cafe and cocktail bar was expected to remain at the centre beyond a six-month trial period.

“It was very disappointing to learn that the tenant had come to the conclusion that their offer would not succeed due to there already being two Italian-based facilities already in town,” says a report to go before members of the council this week.

“That was, however, the case at the time of negotiating the original contract,” adds the report.

“At the last minute the absence of a key member of their staff was given as the reason given for closure,” says the report.

The tenant also said they ran other businesses and in the absence of a key staff member ‘didn’t want to stretch themselves too far.’

Council officers had also suggested that COVID had caused issues.

“Whilst this may well be true, it has equally affected all other similar operators which must raise a question about the strength of the original business plan.”

The task force members “questioned why no red flags had come up in monitoring performance all through the contract. As with earlier evidence, it suggests a lack of sufficient governance.”

Officers within the task group did ‘their level best’ to explain what had happened, they were ‘not in possession of all the information.’

“No financial information was available, little regarding the actual performance or promotion/marketing.

“No evidence other than opinion” was available to support views that the restaurant would not work.

“One hopes that the future of catering will not be based on virtually no evidence when the centre needs every input that can be mustered.”

l Future use of the South Holland Centre is under the microscope this week – click here for more.