Key facts
- Caprice Holdings, owned by Richard Caring, reported a 4% revenue decrease to £90.5m for the year ending January.
- The company blamed the decline on rising employment costs, including National Insurance and National Minimum Wage increases.
- US tariffs were also cited as a significant risk to the business.
- Caprice Holdings reduced its workforce by over 100 employees, cutting employment costs by 13% to £32m.
- In April, Caring sold a majority stake in his hospitality ventures to Diafa, an Abu-Dhabi-backed investor, for £1.4bn.
Richard Caring, the prominent hospitality tycoon known as the 'King of Mayfair', has expressed strong criticism of the UK's economic performance, attributing a recent decline in sales at his luxury restaurant group to a 'lacklustre' environment. Caprice Holdings, which includes establishments like Sexy Fish and J Sheeky, reported a 4% drop in revenue to £90.5 million for the year ending January.
The group's directors explicitly linked the reduced trading figures to a challenging economic climate, compounded by rising employment costs such as increases in National Insurance contributions and the National Minimum Wage. These cost pressures have been a significant headwind for the hospitality sector.
In response to these pressures, Caprice Holdings implemented job cuts, reducing its workforce by over 100 employees and consequently slimming its employment costs by 13% to £32 million. The company stated it worked to maintain value for consumers despite these cost increases.
Beyond domestic economic factors, Caring's group also targeted 'nationalist trade policies' from geopolitical partners, specifically mentioning US President Donald Trump's tariff regime as a major business risk. The directors noted that such policies, alongside UK fiscal measures, have contributed to low economic growth.
In a significant financial move in April, Caring divested a majority stake in many of his hospitality ventures to Diafa, a luxury hospitality platform backed by Abu Dhabi's International Holding Company. This deal, valued at £1.4 billion, encompassed well-known venues like The Ivy and Annabel's.
Separately, reports indicated that Caring was in discussions to acquire the iconic City restaurant 1 Lombard Street, owned by former Goldman Sachs banker Soren Jessen.