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Gordon Ramsay’s restaurant empire faces inflation hit after annual losses hit £6.8million | business news

Gordon Ramsay’s restaurant group has revealed mounting financial losses and the loss of 300 employees while grappling with COVID disruptions.

The celebrity chef’s empire reported a combined loss of £6.8m for the 12 months to August 2021 – up from £5m the previous financial year.

Gordon Ramsay Restaurants operating 35 locations in the UK and 13 abroad have been awarded more than £3million under the government’s furlough scheme to keep British workers on hold throughout the five-month lockdown.

The 300 employees the company cut during this period were mostly restaurant workers, but also head office workers.

The company warned that more challenges lie ahead as inflation squeezes consumer spending and supply chain issues push up commodity prices.

The accounts were created on the day the Bank of England predicted the country would fall recession in the last quarter of 2022 – mainly a consequence of pressure on consumer budgets from rising energy bills.

The restaurant group could suffer significantly lower sales and lower margins, according to its worst-case scenario, similar to Omicron’s 20% sales decline between November and February.

But it added that it could cut costs to avoid big losses.

The accounts also showed the company’s highest-paid director, who has not been identified, received a total salary package of £327,000 for the year.

It represented a cut of the £493,000 handed out a year earlier.

Gordon Ramsay’s restaurant empire faces inflation hit after annual losses hit £6.8million | business news

Source link Gordon Ramsay’s restaurant empire faces inflation hit after annual losses hit £6.8million | business news

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