Gordon Ramsay’s restaurants break even in tough times for sector
The business recovered from a loss in the prior year.
Gordon Ramsay’s restaurants broke even last year, fresh accounts have revealed – just a week after tough conditions in the dining industry pushed fellow TV chef Jamie Oliver’s restaurants into administration.
According to figures seen by Press Association for Gordon Ramsay Restaurants (GRR), the group made a profit before tax of £500,000 in the year to August 31 2018.
It marks a recovery on the previous year, when pre-tax losses came to £3.8 million after a decline in sales.
The collection of restaurants, which includes Restaurant Gordon Ramsay in Chelsea, also reported a 30% increase in underlying earnings to £5.2 million.
Turnover meanwhile jumped 4.3% to £53.6 million.
Mr Ramsay said: “Guests do not just expect a good plate of food, we are relentless with our food quality, that is a given. Our guests want to join us for all occasions be it social or business and then relax in a great environment.
“We have to understand our guests, what they want, where they are heading and we have to head there with them or be left behind.”
It comes at a difficult time for the restaurant industry, with rising costs and fierce competition pushing several operators to shut up shop.
Last week Jamie Oliver’s restaurant empire went into administration, resulting in the immediate closure of 22 of his 25 sites.
However Mr Ramsay’s dining empire said it will continue to expand, despite the headwinds in the sector.
The group, which is led by chief executive Andy Wenlock, said it had tactically reviewed its current estate and invested in new concepts such as a private dining room at Heddon Street Kitchen and a lounge at Bread Street Kitchen.
Following the launch of Street Pizza in April last year, plans are under way for the brand to open in two more sites and for the first Street Burger.
GRR’s current portfolio currently includes 15 restaurants in London and 23 internationally, with a combined total of seven Michelin stars across the business.