Highs and lows for Gordon Ramsay, who continues to open new restaurants and renovate old ones despite inflation and strikes. “I sincerely believe the industry has never been this exciting,” he stated.
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Gordon Ramsay is one of the most famous chefs in the world. Not only because he has accumulated 17 Michelin stars over his forty-year career, losing some along the way (such as Amaryllis in Glasgow and Maze in London), and opened 60 restaurants, closing 23 of them; but also because of his television appearances where he has showcased his fiery temperament, from Hell’s Kitchen to Masterchef, to Cooking with Ramsay, Hotel Hell, and Behind Bars. In August 2020, in the midst of the pandemic, he surprisingly announced his intention to open many new restaurants, going completely against the trend. However, things don't seem to have gone as planned for him, as reported by Yahoo.
The accounting reviews of his culinary empire in the UK, which includes the flagship three-Michelin-starred restaurant bearing his name, and the Street Pizza and Street Burger chains, indicate that his losses have tripled, reaching 3.4 million pounds a year, equivalent to nearly 4 million euros as of August 2023.
The chef responded that his restaurants are still struggling to stay afloat due to inflationary pressures that are eroding the already slim profit margins in the sector: "The situation is challenging because of rising costs of rent and raw materials and the ongoing strikes. It's a war," he stated to The Guardian. However, revenues have grown by 21%, up to 95.6 million pounds, and gross profits have risen to 47.4 million.
The numerous new openings (a total of five locations, some belonging to the aforementioned chains) and the renovation of the gastropub The Narrow in Limehouse, which remained closed for three months, have significantly impacted the financial data. Additionally, the occupation of a London location by a group of squatters protesting the gentrification of the area, which hindered its sale, has also played a small part. Consequently, staff numbers increased by 290, leading to an additional expense of 6.1 million pounds, offsetting the cut of 300 employees during the pandemic. These figures should be considered in context, also taking into account the extra income from television shows, which brought the renowned chef 150 million pounds in 2020 alone.
Ramsay exudes optimism: since opening his first restaurant twenty-six years ago, he claims to have never seen so much passion and vibrancy. "People still want to go out, break bread, and enjoy themselves in good company. We still have something wonderful to celebrate, and I sincerely believe the industry has never been this exciting." Despite his name no longer appearing on the list of the richest men in London, likely due to his relocation to the United States, his considerable net worth is currently estimated at 220 million pounds.
