During the boom of the past decade, Mr. Ramsay amassed 12 Michelin stars, making him the third-most-decorated chef behind France’s Joël Robuchon and Alain Ducasse. His success helped Britain put to rest its reputation as a culinary backwater and win a reputation as a serious destination for foodies.
The super-chef’s current troubles illustrate the intense pressure facing high-end restaurateurs these days. Diners are eating out less often and spending less when they do, particularly on wine and spirits, where the fattest profit margins are. Corporate entertaining, which can account for as much as a third of a luxury restaurant’s business, has fallen sharply.
Annual revenue growth in the roughly $1.5 billion global restaurant industry is expected to slow to 1.1% this year, down from 4.9% in 2008, according to London-based research firm Datamonitor Ltd. The figures include restaurants, cafes and fast-food chains, but industry insiders say the priciest restaurants are among the hardest hit.
The global reach of Mr. Ramsay’s empire leaves him particularly exposed. Unlike some of his peers, he owned many of his restaurants outright, rather than relying on licensing agreements where he earned fees for the use of his name. The approach gave him more control, and more profit in good times, but also more risk when the economy soured.
After a dire start to the year, Mr. Ramsay and some other big-name chefs say business has stabilized in recent weeks.
After making significant changes to menus, staffing and operating hours, Mr. Ramsay says the company now runs more efficiently and business is improving. Sales for May were up 5% from a year ago, he says, though that includes revenue from three restaurants that opened in the past year. Customers are spending about 5% less per person, on average.
Yet in spite of his bankruptcy scare, the celebrity chef is back in expansion mode.
Mr. Ramsay has just opened one restaurant in Italy and plans to open another one there this month. He also has plans for others in Australia and Qatar next year. He says the new places entail less risk because he doesn’t own them. He’s providing his name, key staff and menu advice in exchange for fees.
Born Curious 
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