‘King of Mayfair’ Richard Caring hits out at ‘lacklustre’ economy
Richard Caring, dubbed the ‘King of Mayfair’, has blamed the UK’s “lacklustre” economy for falling sales at his luxury restaurant group.
The hospitality tycoon’s Caprice Holdings reported a four per cent dip in revenue to £90.5m in the year to January, which it blamed on rising employment costs and US tariffs.
Caring’s hospitality group includes Sexy Fish in Berkeley Square, oyster restaurant J Sheeky and French brasserie Balthazar.
“Trading fell compared to the prior period which mirrored a lacklustre economic environment in the UK,” the group’s directors said. “The hospitality sector faced several cost headwinds in the period including increases to National Insurance and the National Minimum Wage.
“The company worked hard to continue providing value to its consumers in spite of cost pressures.”
At the Budget in 2024, then-Chancellor Rachel Reeves hiked the rate and threshold of employer National Insurance Contributions (NICs), which hospitality businesses have described as a punitive employment tax.
Retail and hospitality sector leaders have urged Chancellor John Healey to unwind this tax hike, which they say is worsening the youth unemployment crisis.
Caprice Holdings cut more than 100 jobs in the year to January, as staffing numbers dropped from 1,111 to 1,001. The group slimmed its employment costs by 13 per cent to £32m.
Caring slams Trump tariffs
Caring’s restaurant group also hit out at US President Donald Trump’s tariff regime, which it listed among the biggest risks faced by the business.
“Nationalist trade policies from geopolitical partners as well as UK fiscal policy has resulted in low economic growth,” its directors said.
In April, Caring sold a majority stake in many of his hospitality ventures to an Abu-Dhabi-backed investor.
Diafa, a luxury hospitality platform, took a £1.4bn stake in the portfolio, which included The Ivy restaurant empire, seafood eatery Scott’s and members’ club Annabel’s.
Diafa is an affiliate of International Holding Company, Abu Dhabi’s largest listed firm, and is chaired by Sheikh Tanoon bin Zayed al-Nahyan.
In June, Morning Wire revealed that Caring was in talks to buy iconic City restaurant 1 Lombard Street, which is owned by former Goldman Sachs banker Soren Jessen.