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Gordon Ramsay’s £4.3m nightmare: new accounts reveal empire’s losses
Jonathan Prynn, Consumer Business Editor11 Jan 2010
The full gruesome details of the financial disaster that almost destroyed Gordon Ramsay's business empire were laid bare today.
Financial documents showed for the first time how the celebrity chef's much-vaunted new restaurants and pubs quickly amassed huge losses.
Ramsay and his business partner and father-in-law Chris Hutcheson were forced to put £5 million of their own money into the business to avoid collapse into administration because of unpaid tax at the end of 2008.
New accounts, only released today, show how six new Ramsay outlets all went into the red after they were launched just as the “turbulent” world economy was turning sour, resulting in combined losses of £4.3 million for the year to end of August 2008.
The figures, for a company known as Gordon Ramsay Holdings International, were due to be submitted to Companies House by May last year but were delayed by a financial overhaul of the group.
The biggest single loss was incurred by Ramsay's first Parisian restaurant Versailles at the Trianon Palace Hotel, part of an over-ambitious overseas expansion programme that the chef now admits was a blunder.
At the time he said: “Ask any chef and this is where they really want to succeed. This is the one I'll be judged on.”
But the restaurant, which opened in January 2008, quickly ran into trouble experiencing “tough European trading” which, combined with start-up costs, produced a loss of £1.78 million in just eight months.
The losses were so severe that Ramsay and Mr Hutcheson decided to abandon the project in all but name in February this year.
The Ramsay brand was maintained under licence but the group no longer has any day-to-day responsibility for running the restaurant.
Another of his European restaurants, in Prague, opened in November 2007, also made a loss of £409,000 and has been shut down completely.
In London, his Heathrow outlet Plane Food was hit by the delay in opening Terminal Five and made a £780,767 loss, while Chelsea bistro Foxtrot Oscar was also in the red.
The Devonshire gastropub in Chiswick also made a loss but is expected to break into profit this year.
The successful major London opening Murano, launched by Ramsay protegée Angela Hartness, only opened at the end of the financial year and made a small loss but is thought to have quickly broken into the black.
In a statement Mr Hutcheson said the closures of loss-making restaurants and money pumped into the business had put it back on an even keel.
He said: “The structural changes we've made within the group leave us well positioned for a strong trading year ahead and further.”
The steps taken are thought to have restored the company to profitability during the current financial year.
Reader views (19)
We love master chef,Gordon! We are sure never to miss any of his shows and have learned so very much about cooking.
We hope for the best possible future with both his family and business. Gordon is a great husband, father,and caring man.
- Shirleen Loftis, Westminster,CA,US, 11/11/2010 17:48
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We ate at a Gordon Ramsey resturant last year. Never again - poor service and mediocre food. Everything was overpriced and frankly too pretentious.
- Simon Ellis, London, 11/01/2010 22:11
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I don't know why everyone is so dead against Gordon Ramsay. UK media just love to build them up, and tear them down.
He made mistakes. He is human. They expanded before an economic crisis, who (outside of the financial industry) could of predicted that? Of course he's going to go into red after expanding internationally and the western world economic collapse.
He made his break by being the ball breaking chef. Times have changed and if you've noticed now that the novelty of his charisma and open minded vocabulary has worn off. I think in the last 2 months of watching F Word, I've heard him swear once. Just last year, it would of been at least a dozen times a show!
Give the guy a break. You don't make success like his by being a push over. His ability to come back twice as strong and reimage himself as a business man and chef shows that he's always got the eye on the prize. Remember - it's TV - nothing is natural when you put a camera in front of someone.
- David Symons, London, 11/01/2010 22:03
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Well after looking at 'youtube' and the way he spoke to his diner clients its a wonder he is still around , the old cliche 'you reap what you sow ' this man is , well I thought he was ok until I watched his shows online , he deserves to be bancrupt , young Mr. Oliver is more of a gent .
- Andrew Davies, Veliko Turnovo, 11/01/2010 21:31
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I don't know why everyone is so dead against Gordon Ramsay. UK media just love to build them up, and tear them down.
He made mistakes. He is human. They expanded before an economic crisis, who (outside of the financial industry) could of predicted that? Of course he's going to go into red after expanding internationally and the western world economic collapse.
He made his break by being the ball breaking chef. Times have changed and if you've noticed now that the novelty of his charisma and open minded vocabulary has worn off. I think in the last 2 months of watching F Word, I've heard him swear once. Just last year, it would of been at least a dozen times a show!
Give the guy a break. You don't make success like his by being a push over. His ability to come back twice as strong and reimage himself as a business man and chef shows that he's always got the eye on the prize. Remember - it's TV - nothing is natural when you put a camera in front of someone.
- David Symons, London, 11/01/2010 19:06
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Well, at least he can cook up a mess.
- Carl Peter Åkerhielm, Las Vegas, Nevada, USA, 11/01/2010 18:41
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He is. just a walking swear word...A nonsense person...and definatly not any type of business man....Plus I dont think he's that great a cook.....There's a whole lot better out ther...My lovely for one......She creats great food....on a low weekly income.....How she does I dont know...That walking swear word who needs him...
- Man Of T.Ruth, United Kingdom, 11/01/2010 17:15
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I used to go to the Devonshire in Chiswick - until it turned out that the food was being cooked in a central kitchen (that the maestro swanned through once in a blue moon, not stopping to cook, naturally) then frozen, transported around London, reheated and served to mugs like me at premium prices.
As for Mr. Sweary himself. Well, as the sergeant-major used to say in "It Ain't Half Hot Mum", "Oh dear. How sad. Never mind."
- Martyn Warwick, Chiswick, London, 11/01/2010 17:06
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He is a product of the new part of the 21st century media.
He shall be an example of the demise of these extra-virgin oil cooks.
Good food cooked in wholesome ways so hated by the pretend people of over paid BBC excutives, and their Ch4 children will prevail.
common sense known as good sense by people not on nose sniffing additions to their diet has and shall continue to rule.
- James Taylor-Kerr, kensington uk, 11/01/2010 16:56
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Gord is a has-been. A left over morsel of the Nasty Noughties. A typical role model of his time, he taught our kids that the way to wealth and fame was to become a foul mouthed bully.
Good riddance to him. And by May, with luck the other Gord will be gone too.
- Ricky, Hackney, London, 11/01/2010 16:55
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This is retribution for Ramsey and his money grubbing associates. The destroyer of Foxtrot Oscar, the best and happiest restaurant in London under Michael Proudlock, will get no sympathy from me.
- Miguelm, West London, UK, 11/01/2010 16:51
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@Wulva - The 'competition' was not about being conventional but being the best.
It would have looked odd if a Spanish or Brazilian restaurant had won and Gordon brought out a book on Indian food. I'm not sure about you but a restaurant that can't produce a good dessert (that's a third of the meal) is not a good restaurant. Lasan, produced what were essentially Indian standards. It's also worth pointing out that regardless of episode they played indian background music (no subliminal indicators there then)and that Ramsay stated that he had final say not the diners in his restaurant!
Only an idiot would think that this was a fair contest.
- Hansel, London, 11/01/2010 16:41
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Didn't Lasan get more paying customers in the final than The Pheasant so whats unfair about that. They absolutely thrashed them on the main course which was basically a pile of pigs entrails.
- Dc, London, 11/01/2010 16:37
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Come off it Hansel and Mg. The Pheasant threw the final away with their obsession with offal and "using the entire animal". For the main course the Pheasant chose to serve belly pork with heart in a brawn sauce. What happened to the rest of the pigs from JSP's farm? If he'd just gone a bit more conventional and served leg of pork, or even shoulder, less of the diners would have been put off. Lasan won because they didn't alienate the diners. Gordon had no choice but to give the Indian restaurant the prize in the wake of such a resounding no-vote for the Pheasant - not because of any book launch.
- Wulva, York, England, 11/01/2010 16:12
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Oh Gordon, Gordon. When did it start to go so wrong? When were you ever actually IN any of your kitchens during business hours? Being front of house, talking to the punters? Nothing like the personal touch. Try it!
- Michael Spencer, Toronto, Canada, 11/01/2010 15:59
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Hansel you have explained a result that had been baffling me! My hubby and I were bewildered that he could have chosen the hit and miss Lasan over the consistently good, food and service of The Pheasant. Lasan failed to produce one decent desert in the entire competition - struggled in the tests on customer service and even had the food described as too spicy. I was amazed when Gordon selected them as winners, now I know why. Thank you.
- Mg, London, 11/01/2010 15:28
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I think Gordon will be a able to turn a profit soon - he has the right attitude and doesnt like failure.
However, the exodus of bankers, 50% Tax bracket, 17,5% VAT returns, higher mortgage payments, companies cutting costs and bankers bonuses and pay will have an effect on many high spenders - many who have already gone bust.
Good Luck, and f*****g show us how a £14 fish & chips, bottle of wine and good company/conversation beats a £164 starter, main dish and glass of wine! cos in my book - that's how a winning restaurant survives.
- Ancient Wisdom, London, England, 11/01/2010 15:25
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Also, I have to say that I wasn't the only person that noticed he picked an Indian restaurant to win this seasons 'F-Word' quite coincidently on the exact day that he relased a new book on Indian cuisine and his travels in India and Channel 4 were about to start their 'Indian Winter' season.
I thought I was watching a fair competition when in fact I wasted my time watching 6 weeks of book promotion.
- Hansel, London, 11/01/2010 14:31
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It's hard to feel sorry for this man. After all, he's just an overrated cook.
- David Griffiths, Llanfyllin, Wales, 11/01/2010 13:37
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