Richard Caring, the owner of a prominent restaurant group, has extended an apology to his suppliers following the distribution of a controversial letter that mandated a 2.5 percent discount on their invoices.

This communication, which came from Caring’s restaurant collective that includes The Ivy Collection and Bills, announced earlier this month that a required 2.5 percent reduction would be implemented to ensure the business’s ongoing strength amidst challenging economic conditions.

In the letter dated June 3 and signed by Jeremy Evans, Caring’s head of indirect and beverage procurement, it was stated, “This mandatory discount is being applied in response to the current increased costs of trading. We are asking all of our supplier partners to work with us as we support each other through this difficult period.”

However, after suppliers expressed their concerns regarding this unilateral discount request, Caring clarified to The Times that the missive had not received proper approval and acknowledged that it was “totally incorrect.”

“This letter should not have been written in the manner that it was. I had not seen it and certainly had not approved it. I want to apologize to our suppliers for the letter, which is totally incorrect,” Caring stated.

He emphasized that they would never impose such a measure without the consensus of each supplier, asserting that the suggestion of a mandatory discount was inappropriate.

While the firm does not intend to withdraw the idea of cost reductions entirely, it plans to engage in discussions with each supplier to reach a mutually agreeable solution.

Nicholas Harmston, CEO and founder of We Can Source It, a catering firm that received the controversial letter, responded by stating he would increase his prices by 2.5 percent and shorten the company’s credit terms.

“I couldn’t believe it. In 11 years of supplying [businesses], I’ve never seen a letter like that. It was unbelievable,” Harmston remarked, noting he had not received any feedback on his response. “There was absolutely no way that was going to be accepted by my company, and I don’t believe many other suppliers will accept it either.”

The restaurant conglomerate had justified the proposed price cut by pointing to the numerous challenges currently faced by the hospitality sector, including heightened costs for taxes, employment, and food and beverage supplies. This letter was first covered by City AM.

The communication concluded by inviting suppliers with queries or concerns to reach out to the business. Caring reiterated this commitment, stating, “I want to enlarge on the part of the letter that says if any supplier has any queries or concerns they should contact me. We would like to work with each supplier in this extremely challenging marketplace so that we can collaborate successfully in the future.”

This public apology arrives as Caring is reportedly engaged in advanced negotiations to sell a substantial portion of his UK hospitality operations to an entity linked to Sheikh Tahnoon bin Zayed al-Nahyan. The Financial Times has indicated that the transaction with Sheikh Tahnoon’s holding company, IHC, could surpass £1 billion.