The proprietor of a prominent Cornish hotel has publicly criticised the operator of its in-house restaurant following allegations that employees have been left without pay for several months, resulting in the sudden shutdown of the dining establishment.
Hotel Owner Expresses Outrage Over Unpaid Staff
Oleg Ignatiev, who acquired Newquay Beach Hotel in 2019 and subsequently leased it to the international hotel management firm OYO in 2024, has voiced strong disapproval regarding the situation. The controversy emerged after a parent of a restaurant worker took to social media to highlight that staff, including her daughter, had not received their salaries since late October.
Emma Butterly detailed the predicament on Facebook, stating: "Staff have not been paid since the end of October. All still awaiting this!!! After continuously asking the manager for an update, told to just resign!!!! The staff have since refused to work due to being left out of pocket with no updates from management. Refusing to resign!!"
Complex Lease Arrangement Under Scrutiny
Under the operational structure, OYO sublet the restaurant space to an external tenant, the Indian chain Kerala Peppery, which is owned by Jyothi Prakash according to Companies House records. It is understood that Kerala Peppery independently employed its own staff, including the chef, separate from the hotel's workforce.
Mr Ignatiev clarified to Business Live that while OYO has consistently paid its own employees and his hotel, the restaurant operator has failed to meet its financial obligations. "OYO has paid their staff and me consistently. But Kerala Peppery has not paid rent to OYO, hasn't paid its chef or the restaurant workers," he explained.
Restaurant Operator Becomes Unresponsive
Business Live attempted to contact Ms Prakash for comment on the allegations but received no response. Notably, Kerala Peppery's other location in Crewe is listed as permanently closed on Google, adding to the concerns surrounding the business's operations.
A spokesperson for OYO expressed that the company was "taken by surprise" by the operator's "sudden disappearance and failure to meet basic obligations", which included the non-payment of staff wages and rent. The spokesperson further noted that the operator had become unresponsive, complicating resolution efforts.
OYO Commits to Supporting Affected Staff
In a statement, OYO emphasised its concern for the impacted restaurant employees, describing their situation as "deeply regrettable". The company is actively seeking a new operator for the restaurant space and has pledged to encourage any incoming partner to consider retaining the existing staff members.
"As arrangements are made to bring in a new operator, OYO would strongly encourage the incoming partner to consider retaining these employees," the spokesperson affirmed. OYO continues to endeavour to trace the previous operator to address outstanding obligations and stabilise operations at the hotel.
Future Opportunities for the Restaurant Space
Despite the current turmoil, Mr Ignatiev remains optimistic about the potential of the restaurant facility. He described it as a "great opportunity" with significant attributes, including a large interior and an outside terrace. With the upcoming tourist season spanning the next eight months, he suggested that prospective tenants could secure a favourable arrangement.
"It's a great spot and because you're coming into season for the next eight months OYO are willing to make a deal," Mr Ignatiev remarked, highlighting the potential for a new beginning at the Newquay Beach Hotel.
