Celebrity chef Gordon Ramsay’s restaurant group has reported a loss of £5.1 million in its financial results for the year ended 31 August 2020.
In the documents filed with Companies House, Gordon Ramsay Restaurants reported that turnover had dropped from £54.7 million to £34.5 million. The group also reported an adjusted earnings loss, before interest, tax, depreciation and amortisation, of £1 million, following a £6.6 million profit in 2019.
The group has blamed the loss on the impact of the Covid-19 pandemic, which saw restaurants closed for months at a time due to various national lockdowns. Once hospitality was allowed to reopen, restaurants were faced with varying restrictions, such as the infamous ‘substantial meal’ and ‘rule of six’ requirements.
Despite said challenges, confidence has returned to the group since the lifting of restrictions. In the report, Ramsay’s restaurant group said sales were now closer to pre-pandemic trading and that directors are “comfortable that the business is operating profitably with the ability to withstand reasonably foreseeable severe downside scenarios should they arise… [and] meet liabilities as they fall due over a period of at least 12 months.”
However, there was still some anxiety over the potential return of lockdowns, particularly over the all-important Christmas season, which could result in “breaches to lending agreements” and “EBITDA and cash-related covenants [being] breached.”
The expected financial losses of the pandemic have done little to quell Ramsay’s enthusiasm for opening new restaurants though. The famously sweary chef plans to open 50 new UK restaurants by 2025, including roll-outs of his Street Pizza and Street Burger concepts. Currently, he operates 25 restaurants in London, ranging from the three-Michelin-starred Restaurant Gordon Ramsay in Chelsea to casual dining brands such as Bread Street Kitchen.
In other celebrity chef news, Tom Kerridge will judge the next series of Great British Menu.