Rick Stein’s Cornwall restaurant empire hit by Reeves’s tax raid

Core Insights - Rick Stein's restaurant empire is experiencing significant financial challenges, with increasing losses and declining customer numbers attributed to changes in employment taxes [1][3][4] Financial Performance - Revenues at the Seafood Restaurant dropped by £1.3 million to £18.9 million in 2024, while pre-tax losses widened from £204,000 to £459,000 [2] - Total revenues across the restaurant empire decreased by 5.4% to £30.4 million when including sales from Steins Trading [2] Economic Outlook - Directors have indicated that the economic outlook for the upcoming year remains challenging, particularly for the service-led hospitality sector, which is expected to be severely impacted by recent tax changes [3][4] - The hospitality sector has seen nearly 90,000 job losses since the announcement of tax changes in the October Budget [6] Cost Management Strategies - The company is focusing on cost mitigation and finding innovative ways to reduce expenses without compromising service quality [4] - Rising ingredient and energy prices have been partly mitigated by adjusting prices and changing menus [7] Employment Impact - Rick Stein's group is one of the largest private sector employers in Cornwall, employing 355 staff at the end of 2024 [5] - The hospitality sector's vulnerability is highlighted by the high number of lower-paid and part-time staff, making it particularly sensitive to tax increases [4]