A CELEBRITY chef’s restaurant group saw profits tumble before it was forced to close one of its venues, as the future of a second hangs in the balance.
Rick Stein saw revenues at his Padstow eatery the Seafood Restaurant drop by £1.3million to £18.9million in 2024.
Rick Stein’s restaurant group has recently come under financial pressure[/caption]
Meanwhile, pre-tax losses widened from £204,000 to £459,000.
If you include sales from his other company, Stein’s Trading, total revenues across his entire business were down 5.4% to £30.4million.
Amid mounting financial pressure, the popular TV chef was forced to close his coffee shop in Cornwall on Wednesday, and three members of staff were moved to other roles.
A spokesperson said: “We can confirm that we have permanently closed our small coffee shop with the three-strong team offered alternative positions with the business.”
They added that his Michelin Bib Gourmand Cafe is still open and serves the same coffee, from Cornwall-based Origin Coffee.
The popular chef opened his first restaurant in Padstow in 1975 but has expanded his restaurant empire to include cafes, delis, cookery schools and several eateries.
Many of his restaurants are still in the seaside town, which has been dubbed “Padstein”.
But financial pressures have hampered the chain and dampened its profits.
Rick Stein’s Restaurants is also considering plans to close its venue in Marlborough, Wiltshire, for good.
A spokesperson for the group said: “We can confirm that we are proposing the closure of our Marlborough restaurant and are consulting with the team to explore whether this can be avoided.
“Our other restaurants, and rooms, continue to trade well, but this particular site has not delivered the same level of return.”
The Marlborough restaurant serves a mix of Cornish fish and shellfish in an 18th-century Grade II listed building.
The restaurant was previously saved from closure five years ago after the landlord offered to reduce the rent.
The proposal comes after Stein’s restaurants, shops, cookery school and online business saw revenues fall last year.
Rick Stein has called on the Chancellor to ‘ease pressure’ on employers after Labour’s tax raid.
In a recent interview Stein criticised the Chancellor’s Budget.
He said: “Because the economy is not looking too good, people aren’t going out as much, so the one thing you don’t want to do is impose a heavy tax on the sorts of industries that are actually producing stuff.”
The combined group, which employs more than 600 people, said the decline in trading reflects “the wider pressures on the industry.”
These include rising costs, issues with the supply chain and shifting consumer spending habits.
Ian Fitzgerald, managing director of the Seafood Restaurant Limited, said: “Hospitality is a people-first industry, and we are proud to employ so many talented professionals across our restaurants whose passion for food and hospitality continues to shine through.”
He said the sector has faced £3.4billion in additional annual costs since last October.
He added: “The Chancellor, Rachel Reeves, needs to recognise the importance of employers like us and ease our financial pressures in the Autumn Budget to prevent further job losses and support the recovery of the hospitality industry.”
The group hopes to expand the Rick Stein brand into new parts of the UK and internationally through licensing agreements.
Restaurant struggles
The news comes as more than ten pubs, restaurants or hotels across the UK are going bust every day.
Among the hospitality chains closing restaurants are Ping Pong, which shuttered all of its UK locations and ceased trading in July.
The chain was founded in 2005 by restaurateur Kurt Zdesar, and 13 venues popped up in just four years.
But Ping Pong was forced to close all its locations after 20 years in business.
Meanwhile, popular Italian chain Croma closed one of its restaurants in Chorlton, Manchester, on July 28.
The restaurant was known for its pizzas and other favourites, including crab pappardelle, lasagne and Tandoori chicken.
The chain now has just one restaurant left.
Plus, celebrity chef Raymond Blanc has temporarily closed his world-famous restaurant Le Manoir aux Quat’Saisons for redevelopment.
Why are restaurants struggling?
Restaurants have come under increasing pressure in recent years as the higher cost of living has meant fewer people are eating out.
Many hospitality venues have also struggled to bounce back after the pandemic.
Meanwhile, many of them have faced higher costs, including higher National Insurance contributions and the rise in the minimum wage.
As a result, many have been forced to close down or reduce their estate.
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