Gordon Ramsay Group Posts £6.8 Million Losses

Gordon Ramsay’s restaurant group has revealed losses of £6.8 million (€8 million), as well as the loss of 300 staff due to tightening consumer spending due to inflation.

The chef’s business group reported combined losses of £6.8 million for the year to August 2021 - up from £5m in the previous financial year, compounding disruption due to the coronavirus pandemic and now surging inflation.

It was also revealed that the Gordon Ramsay Restaurant Group, which operated 35 UK sites and 13 overseas operations, received £3 million in government furlough grants during the periods of lockdown, lasting five months.

The group warns of further challenges as the effects of inflation, reduced consumer spending, supply chain issues and increased food costs begin to take a grip. The Bank of England warned that the UK will face a recession in the fourth quarter of 2022, mainly due to rising energy costs and shaky consumer confidence.

The group also predicted a worst-case scenario that saw margins down by as much as 20%, adding that it could further cut costs in order to offset losses. The group’s highest-paid director, who was not named, received a total pay package of £327,000 which was down from £493,000 the previous year.