Friday, 16 July 2010

Dennys

Denny's is a US based family restaurant chain which has recently announced that they will open franchises in the UK and create thousands of jobs. Dennys claim this is because of the reduction in Corporation tax rates over the next few years. This is what they said:
Major US family restaurant chain Denny's has announced plans to expand into the UK market and create thousands of new jobs.
The company's initial targets are for 30 franchised outlets in Manchester and a similar number in the West Midlands but it is planning to have restaurants opening across the country within two years.
Denny's has a £1.47bn turnover from 1,550 outlets worldwide, 90% of which are franchised. Franchisees will be expected to pay around £1m for an outlet.
The firm pointed to changes in taxation announced in the Government's emergency Budget and growing business confidence as reasons for choosing the UK.
Steve Dunn, Denny's executive in charge of development, said: "Our brand is probably just as well known by English families as it is in Florida and California, as they make up one of the largest groups of diners that we see in Disney World.
He added: "Following the recent emergency budget and the lowering of corporation tax, we see a bright future in the UK. This is a big incentive for our new franchisees, who will enjoy one of the best known restaurant brands in the world."
Turnover in Denny's US restaurants averages £1.1bn every year.

Plaid Cymru have long advocated a reduction in corporation taxes to encourage businessess to relocate as have Northern Ireland politicians so that the North of Ireland can compete with the 12.5% rate of Corporation tax in Eire.

This announcement seems to suggest that a relatively modest cut in Corporation Tax can have an impact on job creation, so imagine what a Welsh Government with tax varying powers like Ireland could achieve. Now I appreciate that most of the jobs created will be low paid as are many in the public sector but they are still jobs. Let's hope that Dennys won't be long in coming to Wales; that is of course unless Edwina Hart's 'regulation gone mad' policies succeeds in banning Dennys from selling food to the poor unsuspecting over regulated people of Wales.

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