Fat Duck owner returns to profit

SL6 Ltd, which owns Blumenthal's three Michelin-starred The Fat Duck restaurant and his one-star Hinds Head pub, both in Bray, reported a profit after tax for the year ended 29 May 2022 of £2m.

This comes after the group posted a loss of £0.9 in the previous year (2021), which was dogged by Covid-19 lockdown restrictions.

Turnover for period rose to £11.5m from £5.3m in 2021, with earnings before interest, taxes, depreciation and amortization of £2.4m (2021: £0.9m loss).

Writing in its accounts, director Ronald Lowenthal said sales across the group’s two sites had grown rapidly following the lifting of Covid restrictions, rising quickly from 60% of pre-pandemic 2019 restrictions to 90%.

Throughout the year, staffing was noted as being the ‘greatest challenge’ to the business operation, with Lowenthal describing the group’s struggles with recruitment as being ‘unprecedented’.

He also notes the threat of inflationary uncertainties. ‘Significant’ inflation in relation to food, drinks and utilities remains a continuing cost factor, however, the group has been able to mitigate the inflationary impact of the latter through a hedging strategy.

“This year’s financial recovery and the growth of our organisational capability has placed the group in a financially and organisationally stronger position to manage these challenges,” said Lowenthal, adding that pressure on the labour market is expected to ease soon.