The United Kingdom division of Gordon Ramsay’s hospitality empire reported a first-ever turnover exceeding £100 million for the past financial year, yet the business continues to operate at a loss. The group, which counts 34 venues across its portfolio including the Savoy Grill, Pétrus, and multiple Lucky Cat locations, posted losses of £5.8 million.
This figure represents a significant improvement from the previous year, when losses stood at £9.4 million. Revenue for the period climbed 3% to nearly £101 million. The company credited its trading performance to the recent opening of its 100th global outlet and a boost in visibility following the broadcast of a documentary on Netflix.
Despite the narrowing deficit and top-line growth driven by a string of openings in London, the celebrity chef’s UK arm remains in the red as it scales its operations.
£101 million turnover is impressive, but slim margin. Hope the global success translates back to UK profitability soon.
Still losing money after all these years? I expected more from Gordon Ramsay. Maybe the expansion strategy needs a rethink.
Netflix documentary boost is the real story here. Celebrity brand power is everything when you’re scaling this fast.
Wait, they opened their 100th global outlet? I had no idea the empire was that huge. I just see restaurants on every corner.
Good news is bad news for investors. Revenue is growing, but burning cash to expand is risky in this economy.