Alain Roux’s three Michelin star restaurant in Berkshire is now losing money due to rising wage pressures.
The Waterside Inn, Bray, posted a loss in 2023 of £181,000 compared to a profit of £814,000 the previous year. This was despite the fact that sales were stable over the past year.
The company, which runs Roux at the Skindles in Maidenhead as well, blamed its falling sales on the rising cost of wages, because it had to pay higher wages to keep high-quality employees.
The statement read: “Unfortunately, the overheads for the group are increasing at a rapid pace. Staffing costs have increased significantly.”
These results coincide with a chronic shortage of hospitality staff, who are scrambling to fill over 100,000 vacancies. Around 10pc is the total number of unfilled positions in the UK.
The sector’s lack of staff has been attributed to a dearth of Europeans in the wake Brexit, and the reluctance of young people to work in the hospitality industry.
Restaurants have been affected by the National Living Wage increases twice in a row. The cost of energy and ingredients has also increased, causing a surge in wage inflation.
The company stated: “The obvious increase in staffing, energy, and food costs are only a small part of our seemingly ever-increasing operational costs which affects the overall profitability of the Group.”
The Waterside Inn, founded in 1972, was the brainchild of the late Michel Roux Sr along with his older brother Albert. Both chefs are highly respected and widely credited for popularising fine dining in Britain.
Alain Roux took over in 2002. He is the son of Michel Roux Sr.
The Inn was originally a “shabby pub” located on the Thames. It became one of Europe’s most celebrated restaurants. Since 1985, it has been awarded three Michelin Stars – the highest accolade possible by the Michelin Guide.
Alain Roux, who runs The Waterside Inn in London, has also appeared on TV as a celebrity judge on Masterchef: The Professionals.
The company’s profits have plummeted after 2022, when they had a record year. This was due to soaring sales from wealthy diners who shrugged off the crisis in living costs and returned foreign tourists in the wake the pandemic.
The Waterside Inn’s sales and those of its sister restaurants increased slightly in 2023 by just over £50,000, to £9.06m.
The company stated that it was “very pleasing” to see that customers at The Waterside inn and Roux at Skindles were willing to “buck the trend” and pay a higher price for products and services that are a challenge to the competition.
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