Caring’s hospitality empire has reported a four per cent decline in revenue as cost pressures and trade uncertainty weigh on Britain’s high-end dining sector.
Caprice Holdings, the luxury restaurant group owned by Richard Caring, saw revenue fall to £90.5m in the year to January, down from the prior period.
The group attributed the decline to a combination of rising employment costs, US tariffs, and a broader deterioration in the UK economic climate.
Caprice Holdings’ portfolio includes Sexy Fish in Berkeley Square, oyster restaurant J Sheeky, and French brasserie Balthazar, all flagship venues in London’s West End.
“Trading fell compared to the prior period which mirrored a lacklustre economic environment in the UK,” the group’s directors said in their assessment of the results.
“The hospitality sector faced several cost headwinds in the period including increases to National Insurance and the National Minimum Wage,” the directors added.
“The company worked hard to continue providing value to its consumers in spite of cost pressures,” they said, signalling ongoing efforts to protect customer experience.
The 2024 Budget, delivered by then-Chancellor Rachel Reeves, raised both the rate and threshold of employer National Insurance Contributions, a move widely criticised across the hospitality industry.
Retail and hospitality sector leaders have since urged Chancellor John Healey to reverse the tax hike, arguing it is deepening the youth unemployment crisis across Britain.
Caprice Holdings cut more than 100 jobs during the period, with staff numbers falling from 1,111 to 1,001, while employment costs were reduced by 13 per cent to £32m.
The group also highlighted Donald Trump’s tariff regime as one of the most significant risks facing the business going forward.
“Nationalist trade policies from geopolitical partners as well as UK fiscal policy has resulted in low economic growth,” the group’s directors stated in their filing.
In April, Caring sold a majority stake in a significant portion of his hospitality ventures to an Abu Dhabi-backed investor in a deal valued at £1.4bn.
Diafa, a luxury hospitality platform and affiliate of International Holding Company, Abu Dhabi’s largest listed firm, acquired stakes in The Ivy restaurant empire, Scott’s seafood restaurant, and members’ club Annabel’s.
Diafa is chaired by Sheikh Tanoon bin Zayed al-Nahyan, underlining the significant Gulf investment interest in London’s premium hospitality market.
Separately, Caring was reported to be in talks to acquire iconic City restaurant 1 Lombard Street, which is owned by former Goldman Sachs banker Soren Jessen.