Restaurants forgot customer is king, says Gordon Ramsay
Gordon Ramsay has spoken out about how the recession has brought a ‘breath of fresh air’ to the restaurant industry, which he claims had become too arrogant and forgot the ‘customer is king’.
Speaking on US TV, Ramsay said the industry had neglected to put its diners first, and revealed for the first time how his own experience in dealing with the effects of the economic downturn, which saw profits at his restaurant empire fall by almost 90 per cent, had taught him not to take customers for granted.
“The customers just disappeared,” he said on Fox News. “We had a huge downturn Monday to Thursday, so your staff costs are the same, running costs are the same - it was a nightmare.”
As profits at Gordon Ramsay Holdings fell from £3m to under £400k, and its net debts soared from £4m to £9.5m, Ramsay and business partner Chris Hutcheson were forced to pump £5m of their own money into the business.
The celebrity chef, who earlier this year admitted ‘ambition took over’ him as he rapidly expanded across the globe, said footfall in his restaurants fell by 25 per cent as customers cut back.
“Nobody was drinking wine, and those that were in the restaurants were drinking tap water. The most taxing time has been over the last six months handling this recession. I’ve had failures and I’ve failed but I’ve learned brilliantly from my mistakes.”
The past year has seen Ramsay open Foxtrot Oscar, The Warrington, The London in Hollywood, and a restaurant at the Trianon Palace in Versailles, while plans to launch sites in Qatar, Tuscany, Sardinia and Melbourne over the coming year are still afoot.
