The restaurateur and TV chef saw losses at his U.K.-based, international restaurant business more than triple to £3.4 million ($4.3 million) in the year to August 2023, according to Companies House filings.

The chef said businesses were “battling to stay afloat” amid sustained inflationary pressures that have hit already razor-thin margins in the hospitality sector.

Ramsay’s restaurants, which include the chains Street Pizza and Street Burger as well as his three-Michelin Star flagship restaurant, increased revenues by 21% to £95.6 million ($119.8 million) in 2023, while gross profits increased to £47.4 million ($59.4 million).

However, a wave of new restaurant openings and refurbishments last year hit the company’s bottom line. Ramsay’s empire added five new restaurants to its roster, including new Street Pizza and Street Burger outlets, while he shuttered his Limehouse gastro-pub The Narrow for three months to carry out a major upgrade.

“It’s challenging out there and businesses are battling to stay afloat, rising costs, rent and food costs, multiple strikes. It’s a battle,” Ramsay was reported as saying in The Guardian.

On the other hand he did note that he hadn’t seen so much passion and vibrancy in the industry in the 26 years since he opened his first restaurant.

“People still want to go out, break bread, and have a good time together. We’ve still got something wonderful to celebrate and I truly believe the industry has never been so exciting.”

The upside

There were 290 extra employees working under Ramsay following this expansion, with the cantankerous chef spending an extra £6.1 million ($7.6 million) in staff costs. 

Those hirings represent a symbolic turnaround in fortunes after an extremely challenging period in the pandemic. Ramsay let go 300 staff in the 2020-2021 financial year as his restaurant group posted pre-tax losses of £6.8 million ($8.5 million) in the wake of extended lockdowns and a subsequent cost of living crisis.

Comparatively, this year’s financial results are unlikely to disturb Ramsay too much. For a start, his restaurant business is still in the black when it comes to gross profits—it was restaurant expansion and refurbishment that led to the pre-tax loss, remember. 

He also has a diversified income, owing to his knack for lucrative TV appearances and book deals. Forbes reported, for example, that in 2020, Ramsay’s TV shows, including Hell’s Kitchen and MasterChef, were worth $150 million in ad revenue to broadcaster Fox.

Ramsay was knocked off the prestigious Sunday Times of London Rich List in 2009, having previously been estimated to have a net worth of £50 million ($62.7 million). His absence from the list may have something to do with relocating to the U.S., however, with his personal wealth more recently reported at $220 million.  

Squatter trouble

On a lighter note, the restaurateur will have some more unusual costs to report when he files next year’s results.

In April, a group of squatters took over Ramsay’s York & Albany restaurant close to London’s Regents Park. The occupation likely impacted his attempts to sell the premises, which is on the market for £13 million ($16.3 million).

Squatters set up a cafe (Michelin stars: zero) inside the restaurant and gave out free food to Camden residents, arguing against the gentrification of the area and the prospective impact of the incoming HS2 railway line.