Gaucho Grill records heavy losses in 2001
Gaucho Grill has joined the growing list of restaurant groups reporting massive falls in trading last year.
In the year to 31 December 2001, Gaucho recorded a pre-tax loss of £1.4m, nose-diving by 173.7%, from a pre-tax profit of £1.9m a year earlier.
Turnover increased by 14.6% to £27.5m, up from £24m in 2000, but this was attributed to additional sales from four new restaurants opened during the year.
Several restaurant operators, including Signature Restaurants (formerly Belgo), the Hartford Group and Groupe Chez Gérard, have recently reported dismal results for last year. All blamed 11 September and foot-and-mouth disease.
Zeev Godik, chairman and chief executive of Gaucho, said last year had been "very difficult".
He added that in view of the continuing economic and general uncertainty the group had decided to suspend its expansion programme "until market conditions justify such a commitment".
The group has also cut its investment spending to £700,000, a 90.5% reduction on the £7.4m spent in 2001.
Manjinder Johal, finance director at Gaucho, hoped business would pick up soon. She said: "Fingers crossed, let's hope people start going out a bit more."
Gaucho also announced it had received an approach to buy the entire share capital of the business for about 20p per share.
Last October Godik and his team of majority shareholders pulled out of a management buyout because of the uncertain economic climate.
The unnamed offer is again thought to be from the management team, which holds about 80% of the company.
by Samantha McClary
