Jamie Oliver seeks B Corp certification to overcome restaurant fiasco

After numerous struggles resulted in the Jamie’s Italian restaurant closing, founder Jamie Oliver is trying to make his media business a Certified B Corporation. Credit: Karl Gabor

After numerous struggles resulting in the closure of the Jamie’s Italian restaurant, founder Jamie Oliver is trying to make his media business a Certified B Corporation.

Known for his past health campaigns, especially that for healthier school lunches, the renowned chef will attempt to have his social work officially recognised. As he recently stated, the company is determined to address social responsibility in every project that the Jamie Oliver group takes on.   

A financial move?

Achieving the aforementioned certification does not necessarily translate into profit, but it will certainly help to sell books and TV shows amid the surge in social and environmental awareness.

Furthermore, after facing public criticism over the bankruptcy of the Jamie’s Italian chain, the good PR that comes with certification will certainly not hurt any present or future business activities. Licensing and endorsement has been a substantial source of revenue for the chef, garnering £24.2m in 2017.

Given that the famous cook has sold 45 million books and made 35 TV shows, it seems like the smart move to focus on the potential of his media business, rather than embarking in riskier restaurant ventures.

Casual dining chains are a business model in decline

Other casual dining chains such as Carluccio’s, CAU and Gourmet Burger Kitchen have been forced to close sites to weather the sector’s currently hostile climate. 

However, it seems clear that the management team of the Jamie Oliver Group was especially ineffective when it came to adapting the business to suit consumer trends. Though the causes that led the restaurant chain to collapse have not been made public, pressure to create a standard achievable for every restaurant in the chain may have compromised the quality of the end product. That would have driven away customers to more independent, yet recognisable, restaurants.

Additional pressure comes from the boom of takeaway companies, such as Deliveroo and Just Eat. As a result, competition level has become unbearable for some of these oversized restaurant chains that are heavily reliant on volume sold to cover their expenses.

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