Richard Caring blames weak UK economy for luxury restaurant sales dip
Caprice Holdings' revenue fell to £90.5m as the group points to a lacklustre UK economy, rising staff costs and US trade measures.
Richard Caring, the owner of the Caprice Holdings restaurant empire, announced that the group’s revenue fell four per cent to £90.5m in the year to January. The decline, the company said, reflects a "lacklustre" UK economic environment, higher employment expenses and the impact of US tariffs on its supply chain.
Revenue dip and cost pressures
The hospitality portfolio, which includes venues such as Sexty Fish in Berkeley Square, J Sheeky and the French brasserie Balthazar, said trading fell compared with the prior period. "Trading fell compared to the prior period which mirrored a lacklustre economic environment in the UK," the directors added.
"The hospitality sector faced several cost headwinds in the period including increases to National Insurance and the National Minimum Wage," the statement read.
At the 2024 Budget, Rachel Reeves raised the rate and threshold for employer National Insurance Contributions, a move that industry bodies have described as a punitive tax increase. The higher NICs have been singled out by many as a factor that could choke growth, echoing concerns raised in recent tax policy debates.
Caprice Holdings cut more than 100 jobs, reducing its workforce from 1,111 to 1,001, and managed to lower employment costs by 13% to £32m. The group said it continued to focus on delivering value to diners despite the squeeze.
Ownership reshuffle and future moves
In April, the group sold a majority stake in many of its flagship venues to an Abu‑Dhabi‑backed investor. Diafa, a luxury hospitality platform linked to the International Holding Company, acquired a £1.4bn stake that includes the The Ivy empire, seafood eatery Scott’s and members’ club Annabel’s. The deal was chaired by Sheikh Tanoon bin Zayed al‑Nahyan.
Industry observers note that the sale provides Caprice Holdings with fresh capital to weather the current downturn. In June, reports surfaced that Caring was in talks to purchase the iconic city restaurant 1 Lombard Street, currently owned by former Goldman Sachs banker Soren Jessen. If completed, the acquisition could signal a strategic shift toward consolidating high‑profile London venues.
Looking ahead, the group is likely to lobby for relief on the NIC hike, a move championed by John Healey and other sector leaders. A softer tax regime could help restore confidence and support hiring, while the ongoing US trade policy remains a wildcard for import‑dependent menus.
