Gordon Ramsay Group returns to profit but brings in procurement team for better F&B deals

The Gordon Ramsay Group has returned to profit after two year but has brought in a procurement team of Brexit negotiators to tackle rising food costs across the firm's 31 restaurants. Previously venues were negotiating on a restaurant-by-restaurant basis and not benefiting from economies of scale.

Companies House filings for the firm stated, “As a consequence of the referendum in the summer of 2016 there is a great deal of uncertainty about the future direction of the economy. This will have a number of potential implications including cost pressures due to the inflationary impact of sterling against the euro, recruitment and the general economic climate. In part to mitigate the inflationary impact a procurement team has been recruited to manage the supply chain.'

The company has returned to profit due to restructuring and international expansion. It recorded a profit of £739k in the year to last August, compared with losses of £2m and £6m in the previous two years. Sales last year rose 3.2% to £52m, helped by a 24% rise in international revenues to £3.6m.

The price of food is rising at its fastest in more than three years, the British Retail Consortium reported in April. Food inflation hit 1% year-on-year in March, the sharpest rise since February 2014 and marking the second month in a row of rising prices.