Rick Stein Group Reports Widening Losses Amid Trading Challenges
The Rick Stein restaurant empire has reported significantly increased losses for 2024, with the group’s flagship operations experiencing declining revenues and workforce reductions as economic pressures continue to bite.
Latest filings with Companies House reveal that The Seafood Restaurant (Padstow), the cornerstone of Stein’s hospitality portfolio, saw turnover drop to £18.8 million from £20.2 million in the previous year. More concerning for shareholders, pre-tax losses more than doubled from £204,000 to £459,000.
The pattern was mirrored across other key trading entities. Seafood Trading, another major component of the group, experienced identical revenue declines while pre-tax losses expanded from £892,000 to £1.1 million. Meanwhile, Stein’s Trading saw turnover edge down from £11.8 million to £11.4 million, with losses increasing from £163,000 to £290,000.
Adding to the group’s challenges the group is currently consulting with staff at its Marlborough restaurant regarding a potential closure. However, the company remains hopeful that the venue can be saved.
A spokesperson indicated that the Marlborough site has underperformed compared to other locations in the group’s portfolio of twelve restaurants, cookery school, and meal kit business.
In their statutory filing, directors outlined the multiple challenges facing the business throughout 2024. The board highlighted how the “prolonged effect of the national cost-of-living crisis” continued to impact operations, with persistent high inflation and weakening consumer confidence creating a perfect storm for hospitality operators.
The group has implemented various mitigation strategies, including menu price adjustments, recipe engineering, and enhanced procurement practices to offset rising ingredient costs. However, these measures were insufficient to counteract broader economic pressures.
A particular challenge came from the substantial 9.8% increase in the national minimum wage, which directors noted placed “additional strain on profitability.” While the group managed some recovery through improved labour management, the impact remained significant.
The Easter trading period proved especially difficult, with guest numbers falling sharply compared to previous years, delivering what directors described as a “sizeable impact to profitability” during what should have been a peak period.
The financial pressures translated into job losses, with combined employment across The Seafood Restaurant (Padstow) and Seafood Trading falling from 398 to 355 staff members during 2024.
Despite the challenging headline figures, there were indications of improvement in the latter part of the year. Directors reported that from June 2024 onwards, the group achieved year-on-year improvements in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation), suggesting operational performance was stabilising.