Gordon Ramsay Restaurants has reported a loss of £5.1m in its financial results for the year ended 31 August 2020 as a result of the pandemic.
According to documents filed with Companies House, lockdowns and restrictions on hospitality across the world led to a drop in turnover from £54.7m to £34.5m and an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) loss of £1m, following a £6.6m profit in 2019.
The group said sales were now close to or in line with pre-pandemic trading and directors were "comfortable that the business is operating profitably with the ability to withstand reasonably foreseeable severe downside scenarios should they arise… [and] meet liabilities as they fall due over a period of at least 12 months".
However, the report added that a lockdown and business closure over the important Christmas trading period could result in "breaches to lending agreements" and "EBITDA and cash-related covenants [being] breached".
Gordon Ramsay Restaurants operates 25 London restaurants, including the three-Michelin-starred Restaurant Gordon Ramsay in Chelsea, Michelin-starred Pétrus in Belgravia, and the Savoy Grill, as well as casual dining restaurant brands including Bread Street Kitchen.
Gordon Ramsay Restaurants is undergoing a major expansion drive with the aim of opening up to 50 new UK restaurants by 2025. The first Bread Street Cafe opened on Ealing Broadway on 23 August and a Bread Street Kitchen and Bar – South Place opened in the City of London on 30 August.
The group has accelerated the roll-out of its Street Pizza and Street Burger concepts this year, with international franchising on the cards. The financial report for the group said plans were "well advanced" to expand the Bread Street more widely in the UK.
Next month Ramsay will expand his operations at the Savoy with the opening of the River restaurant, as well as opening the first Gordon Ramsay Academy in Woking, Surrey, with plans to launch similar academies in America and Asia.