Gordon Ramsay’s restaurant empire sees inflation hit after annual losses swell to £6.8m | Business newsletter
Gordon Ramsay’s restaurant team has revealed growing financial damage and the loss of 300 employees while grappling with COVID disruptions.
The celebrity chef’s empire reported a combined loss of £6.8m in the 12 months to August 2021 – up from £5m in the previous financial year.
Gordon Ramsay Restaurants, which operate 35 establishments in the UK and 13 overseas, have received more than £3million under a government boost plan to help retain workers in the UK during the five-month shutdown. .
The 300 employees laid off by the company during the period were mainly restaurant employees but also main office staff.
The company warned that further challenges lie ahead, with inflation weighing on consumer spending and supply chain issues pushing up commodity prices.
The accounts appeared on the day the Bank of England forecast that the country would fall into recession Depression in the final quarter of 2022 – largely as a result of tight consumer budgets due to rising energy bills.
The restaurant group could experience a significant drop in revenue and reduced margins, similar to the 20% drop in sales during the November-February Omicron period, under the worst-case scenario.
But it added that it could cut costs to avoid big losses.
The accounts also show that the company’s highest-paid director, who has not been identified, received a salary package totaling £327,000 for the year.
It represents a cut from £493,000 given a year earlier.
