In Portugal: Requiem for O Manel

Manuel Simões is being forced to close his 70-year-old family business, a restaurant on the outskirts of Lisbon. Since VAT rose for businesses like his, 75,000 jobs has disappeared from the industry.

Manuel Simões, 64, stands behind the steel and glass counter of his restaurant, O Manel, looking tired under the dim lights. “Everything has a beginning and an end,” he says, trying to hide how emotional he can get when talking about closing his 70-year-old business.

Simões has been serving meals and pouring drinks since the early 1970s, when he inherited this business from his father, who established it in the 1940s. Running the restaurant has never made Simões rich but it provided him with enough to keep the business profitable while employing four members of staff.

Located in Vale da Amoreira, a troubled, working-class neighbourhood on the outskirts of Lisbon, O Manel is a place where you can enjoy the rare sight of an amiable conversation between African immigrants, gypsies and Portuguese. 
 
“Even those kids who are involved in all sorts of things – you know, drugs and what not – when they come here they never cause any trouble,” says Fatima Simões, Manuel’s wife and the restaurant’s cook. 
 
O Manel was founded back when Vale da Amoreira’s landscape was all pine trees and wild nature, not sevenstorey grey buildings enveloped in an aura of crime and poverty. Seven decades later, the restaurant is the only institution left that has seen it all.
 
But this month marks the end of O Manel. Although Portugal’s financial crisis is partly responsible, Simões was driven over the edge by the VAT rise from 13 to 23 per cent for restaurants and cafés – an austerity measure implemented in 2012 as part of Portugal’s bailout programme. This has slashed most businesses’ profit margins, at a time when eating out has become more of a luxury than a habit.
 
According to the association of Portuguese restaurants and hotels, since VAT for restaurants has risen, 75,000 jobs have disappeared in an industry that employs 300,000 people, 6 per cent of Portugal’s workforce. The association predicts that by the end of 2013 the number of jobless food-service workers will rise to 120,000. 
 
Simões reacted to the VAT hike in the way he thought most fair to his blue-collar, crisis-affected clientele: instead of raising his prices, he reduced them in order to keep the customers coming. 
 
His hope was proved wrong – or rather, insignificant, as Portugal’s economic crisis spread like wildfire, bringing the country to a record overall unemployment rate of 17.8 per cent. Although the customers stuck with O Manel, spending €6 (£5.20) for a meal gave way to paying just €1 (90p) for a beer. 
 
“When we shut the restaurant down, people won’t know what to do,” Simões told me when I met him. “We’ve always been here. We’ve seen so many people grow up. It’ll be like losing family.”

 

A "Pastel de nata" - Lisbon's most popular pastry. Photograph: Getty Images.

This article first appeared in the 12 August 2013 issue of the New Statesman, What if JFK had lived?

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Cabinet audit: what does the appointment of Boris Johnson as Foreign Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for Foreign and Commonwealth Affairs.

The world shared a stunned silence when news broke that Boris Johnson would be the new Foreign Secretary. Johnson, who once referred to black people as “piccaninnies” and more recently accused the half-Kenyan President of the United States of only commenting on the EU referendum because of bitterness about colonialism, will now be Britain’s representative on the world stage.

His colourful career immediately came back to haunt him when US journalists accused him of “outright lies” and reminded him of the time he likened Presidential candidate Hillary Clinton to a “sadistic nurse”. Johnson’s previous appearances on the international stage include a speech in Beijing where he maintained that ping pong was actually the Victorian game of “whiff whaff”.

But Johnson has always been more than a blond buffoon, and this appointment is a shrewd one by May. His popularity in the country at large, apparently helped by getting stuck on a zip line and having numerous affairs, made him an obvious threat to David Cameron’s premiership. His decision to defect to the Leave campaign was widely credited with bringing it success. He canned his leadership campaign after Michael Gove launched his own bid, but the question of whether his chutzpah would beat May’s experience and gravity is still unknown.

In giving BoJo the Foreign Office, then, May hands him the photo opportunities he craves. Meanwhile, the man with real power in international affairs will be David Davis, who as Brexit minister has the far more daunting task of renegotiating Britain’s trade deals.