Gaucho Grill feels the heat

Restaurant operator Gaucho Grill has reported a 72% decrease in pre-tax profit, from £679,000 to just £192,000, for the six months to 30 June.

Chairman Zeev Godik said negative publicity surrounding BSE and foot-and-mouth disease had caused a decline in like-for-like trading in the company's restaurants in the early months of the year.

Despite a drastic fall in pre-tax profit, turnover was up by 18% to £12.94m.

Godik attributed the growth in turnover to the increase in sales from restaurant openings.

He added that sales in Switzerland, where no restaurants opened, showed a decrease.

Like-for-like trading since June has been better than last year in the UK and Holland, although trading in Switzerland has continued to remain weak.

Gaucho has opened 10 restaurants since the beginning of the year.