The 1925 at the Pompadour restaurant in The Caledonian Edinburgh has every right to claim its crown among Scotland’s finest. For generations the place has hosted kings, queens, political leaders and celebrities.
In the first-floor restaurant, you can indulge in a starter of hand-dived Orkney scallops (£20) and main course of whole smoked lobster, mirin butter, and dulse potatoes (£85).
Its feted chef is Dean Banks, a runner-up in MasterChef the Professionals in 2018. He has since set up five Scottish locations where he runs his stand-alone Haar restaurants, and he spends two days a week at the Pompadour, where he oversees preparation of his menus and dishes.
His home and the Dean Banks Group office is in Cupar in Fife, while the company’s e-commerce, production and distribution unit is in Perth. Banks loves the heat and pressure of the kitchen, and wants to expand and is looking at a new location. But he is more than exasperated by the stifling taxation system – including the rises in employee National Insurance.
Recently, he posted a viral campaign on Instagram of a mackerel sliced up into tax-size bites. It has received more than 100,000 likes and it aims straight for the jugular of Sir Keir Starmer, Rachel Reeves and John Swinney.
“My vocal online campaigning is not just for me. I have a platform and feel that I have a voice. It’s my duty to use this platform to voice the requirements of my industry,” he says.
“The feedback has been fantastic. But I want our politicians to wake up and understand what we are pleading with them to do. A guy who owns a gym tapped me on the shoulder and said the video resonates with him too.”
The reason for high prices
While his campaign is highlighting the debilitating tax levels hampering Scotland’s hospitality sector, already under severe pressure, it is also about informing dining customers about the reason for high prices.
“A lot of customers are not in business, so they won’t understand. So, if you are coming into a restaurant for a £100 tasting menu, you’ll think Mr Banks is rolling in cash. In reality, £16.60 goes to the VAT authority. We get £83.40, then we have our overheads, staff costs, which sits at 40 per cent of our revenue.”
Banks believes such a taxation burden is crippling a vital sector in Scotland. “We are lucky because we have multiple sites that can support those that are not making any profits, so we can deal with this.”
However, he says if he were a standalone restaurant owner, he would have to close the door, because the trading environment today is so tough.
The heart of the great eating experience
The group includes award-winning Haar with Rooms, which has four AA rosettes for 2026 and is Michelin listed, Dune St Andrews, Dulse West End and Dulse Leith, both two-star rosettes, so the group requires staff trained to a higher level of dining service.
Around 120 staff are employed during the quieter months, and Banks is cranking up to more than 200 staff for the summer season.
He talks about the inflationary costs of food produce, which is the heart of the great eating experience.
We’re very connected with our suppliers and they have to make a living too. For me, it’s making sure we are paying our suppliers fairly and running a good business
A lot of things are so variable. Primarily we’re a seafood restaurant business, and that’s market rate, which has gone up because of the cost of fuel for fishing boats and then to our premises. Right now, the price of lobster is at an all-time high.”
He is also angered that the Scottish Government lifted its ban on fisherman taking lobsters that have visible eggs for future breeding. “We don’t accept lobsters with their eggs, because we believe this is the next generation of the fishery.
“We’re very connected with our suppliers and they have to make a living too. For me, it’s making sure we are paying our suppliers fairly and running a good business.
“But what the government is doing is trying to force our hands, to pay our staff less, pay for cheaper supplies, go for lower end produce. It seems to me you are being punished for doing well.”
Assessing the rateable value of a restaurant
If prices go up, so does the VAT take, while he says the business rate hikes are “barmy”. He believes that local rating valuers are now looking at social media feeds and visiting websites to look at pricing and marketing campaigns to assess the rateable value of a restaurant.
Two similar high street premises will have differing rate bills depending on the efforts they make to promote their business. This, says Banks, is “bonkers”.
The word cash cow is what we are right now. Local, Scottish and UK government all want a piece of the cake
“The word cash cow is what we are right now. Local, Scottish and UK government all want a piece of the cake.”
“Scottish and UK hospitality groups are trying to bring their voices together. Some MPs are echoing these voices, but for some reason, for John Swinney, Keir Starmer and Rachel Reeves, it’s falling on deaf ears.”
“We need a thriving private sector to support our growing public sector. Let the businesses do well, and the public coffers will have more money,” he says.
He argues that the Reeves’ 15 per cent rise in National Insurance employers’ contribution coupled with lowering the tax threshold and increasing the national minimum wage has ‘stolen’ his staff’s pay rises.
“The money we set aside for pay rises has been stolen and gone into the government’s pocket. And they are still stealing it,” he continues. “Stealing is a strong word, but that’s what it is,” he adds.
Read more of Scotland’s Finest articles here.