Doner Shack blames UK tax rises for move overseas

Kebab restaurant brand Doner Shack is to move its headquarters to the US after claiming tax increases have made the UK a more difficult place to do business.

The group said the government’s recent decision to raise employer national insurance contributions from April 2025 and maintain the high VAT rate had contributed to its decision.

Founders Sanj Sanghera and Laura Bruce launched the Doner Haus restaurant in Glasgow in 2017 before creating Berlin-inspired kebab restaurant Doner Shack in 2019. It has since expanded to three sites in Glasgow, Manchester and Leeds.

Doner Shack will now move its base to Miami in Florida ahead of plans to launch a US franchise operation.

The Caterer understands Doner Shack will still operate and look for opportunities in the UK, but its primary focus will be on the US next year.

“There’s a lot of confidence in the US - it’s the most established franchise market in the world, particularly for the QSR sector,” said Bruce.

“We’re excited to operate in an environment that offers strong opportunities for growth and success, allowing our business to thrive, as opposed to dealing with constant setbacks we’ve seen in the UK since March 2020.”

Sanghera said the US was a “much better environment” for the business and he had spoken to franchisees with over 1,000 restaurants – far exceeding the scale of most brands in the UK.

"In Europe, most hospitality businesses benefit from a VAT sales tax of 10% or less, while in the UK, we face a rate of 20%,” he said.

“Combined with rising costs during the inflationary period of 2023, this has made operations increasingly challenging. Additional pressures, such as higher employer national insurance contributions and the end of pandemic-level business rates relief, doesn’t build great confidence and has further compounded the strain. 

“By contrast, the US offers a much more supportive environment for businesses, and we’re already feeling more optimistic about the opportunities here.”

Doner Shack opened a restaurant in London’s Baker Street in 2023 that has now closed.