Rising costs and shifting habits test Gordon Ramsay’s restaurant network

Gordon Ramsay’s restaurant group has announced the loss of nearly 200 jobs, amounting to about 10 per cent of its UK workforce, following another year of heavy financial losses. The celebrity chef’s company, which operates 33 restaurants across the country, reported a £13.2 million deficit — its largest since the pandemic — despite rising revenues.

Cost pressures tighten the squeeze

The reduction affects roles primarily within the restaurants rather than head office operations, signalling a structural adjustment rather than a retrenchment of ambition. The company attributed the move to “external challenges,” citing the high cost of living, wage inflation, and surging energy prices.

These pressures have been compounded by changes in dining habits. Ramsay, who founded the group in 1998, recently acknowledged a cultural shift among younger diners, commenting that “the generation now don’t want to talk and order,” as the business transitions to more digital-first service models .

Political and economic headwinds

The wider economic environment has proven especially punishing for hospitality. Rising labour costs and increases to employers’ National Insurance contributions have added billions to sector-wide expenses. UKHospitality estimates the last Budget alone imposed £3.2 billion in additional costs on restaurants, pubs, and cafés .

Ramsay himself has criticised the government’s fiscal approach, arguing that policy decisions have made it “even more difficult” to operate profitably. His comments echo frustration across the industry, where staffing costs and taxation have combined to erode margins — even for established brands.

A pattern across the fine dining sector

Ramsay’s predicament mirrors that of several other high-profile chefs. Jamie Oliver’s chain collapsed in 2019, Gino D’Acampo’s restaurants entered administration earlier this year, and Rick Stein’s group recently closed two venues citing reduced consumer confidence . Heston Blumenthal’s The Fat Duck Group has also reported widening losses, despite global acclaim.

Fine dining, once seen as a recession-proof niche, has not been immune to inflation. Ramsay’s Petrus restaurant, for example, has raised its Christmas Day menu price to £325 per person — an increase of £35 in two years — reflecting how even luxury brands are recalibrating to maintain standards.

Growth amid adversity

Despite the turbulence, Gordon Ramsay Restaurants continues to expand globally. Revenues climbed from £95.6 million to £133.9 million in 2024, buoyed by international operations and franchising. The company has announced new openings in Spain, Saudi Arabia, and India, alongside plans for a Bread Street Kitchen & Bar in London’s Bishopsgate next year.

Chief Executive Andy Wenlock described the business as “ambitious and entrepreneurial,” adding that the group intends to expand its quick-service brands — Gordon Ramsay Fish & Chips, Street Pizza, and Street Burger — through franchising, particularly in the United States.

Resilience through reinvention

For Ramsay’s restaurant empire, the latest restructuring signals a recalibration rather than retreat. The group’s strategy — tighter operations at home, expansion abroad, and adoption of technology to meet modern dining habits — reflects a broader evolution across the industry.

As Britain’s dining culture continues to shift, Ramsay’s next challenge will be balancing his global ambitions with the economic realities reshaping the hospitality landscape.