“There is something really personal about this decision,”, Peter confessed, adding that the idea of handing over the restaurant to employees was a natural and rewarding choice.
The News
At the age of 60, after a lifetime of running two Spanish-inspired restaurants in the heart of Liverpool, Peter Kinsella has decided to make a rare and extraordinary gesture: handing over his businesses to employees. Together with his wife Elaine, also 60, Peter chose not to sell his renowned “Lunya” delis, but to transfer ownership to the 67 staff members through a trust similar to that adopted by the famous British brand John Lewis, BBC reports.
A choice against the grain
“The more we inquired about selling the business, the less we liked the idea,”, Kinsella explained, pointing out that the possibility of selling did not seem fair to him or the employees who had contributed to the success of his restaurants. The couple thus opted for an Employee Owned Trust (EOT), a trust that allows employees to become shareholders in the company. In this way, they not only ensure the continuity of their work, but also participate directly in future profits.
A long history of success
The first Lunya restaurant opened in 2010 in Liverpool, on College Lane. Right away, the Spanish-inspired food offerings won over the local public, so much so that in 2012 the restaurant moved to a larger location on Hanover Street. In 2015, the Kinsellas also opened a restaurant in Manchester, but the experience ended during the pandemic. However, in 2018, a third restaurant found a home at the Albert Dock, further cementing the couple's success.
A personal reflection on the future
The decision to hand over the business to employees was strongly influenced by a personal event: Elaine's cancer diagnosis in 2021. This difficult time led the Kinsellas to rethink their priorities and reflect on how to ensure a prosperous and stable future for their employees, whom they consider family. “There is something really personal about this decision,”, Peter confessed, adding that the idea of handing over the restaurant to their employees was a natural and rewarding choice for them.
How the trust fund works
The transfer of ownership will not happen automatically. First an independent assessment of the value of the business will be required, which will then be sent to the UK Inland Revenue (HMRC). If the plan is approved, profits up to the appraised value of the company will be paid to Peter and Elaine. Thereafter, all profits will go to the employees, who have become shareholders through EOT.
Industry challenges and hopes for the future
Kinsella makes no secret of the fact that the restaurant industry is going through a difficult period. Despite record revenues and increased sales, operating costs, such as those related to utilities, are putting pressure on even successful businesses. "Usually being very busy is synonymous with excellent performance. At the moment, it simply means you have a good chance to survive,", he explained. Peter hopes that when the company is entirely in the hands of employees, the situation in the industry will improve.
Staff reaction
Not all team members reacted the same way to the news of the trust fund's creation. While the incumbent staff members, who have worked for the Kinsellas for years and plan to stay for a long time, were enthusiastic, the same response did not come from the younger ones. “I guess 19- or 20-year-olds, who do this work as a temporary occupation during their studies, don't fully understand the value of this change,”, Kinsella added with a smile.
A legacy of gratitude
In the end, Peter and Elaine Kinsella's decision represents more than just a business choice. It is an act of gratitude to the staff who have always supported them and a way to ensure a solid future for their employees, bequeathing to them not only a successful business, but also the responsibility to carry it forward in the same spirit that has been Lunya's hallmark from day one.
