Alain Roux’s three Michelin-star restaurant in Berkshire has swung to a loss amid soaring wage pressures.
The Waterside Inn in Bray posted a loss of £181,000 in its latest accounts for 2023, down from an £814,000 profit the year prior. That was despite sales holding steady over the year.
The business, which also runs the Roux at Skindles restaurant in Maidenhead, blamed the drop-off on its rising bill as it was forced to pay out higher wages to retain high-quality workers.
It said: “Unfortunately the overheads of the group have been increasing pace, with a notable increase in staffing costs being the dominating factor.”
The results come amid a long-running shortage of staff in the hospitality industry, which is scrambling to fill more than 100,000 vacancies. This equates to around 10pc of all unfilled roles in the UK.
A dearth of European workers in the wake of Brexit and a reluctance on the part of younger people to work in hospitality has been blamed for the sector’s staffing woes.
As well as having to compete harder to attract staff, restaurants have also been hit by two consecutive increases in the National Living Wage. This bout of wage inflation has coincided with the increasing cost of ingredients and energy.
The company said: “The inevitable increase in staffing costs, as well as energy and food costs, are just a part of the seemingly ever-increasing cost base of the Group’s operations, which then affects our overall profitability.”
The Waterside Inn was founded in 1972 by the late Michel Roux Sr and his brother Albert, both highly influential chefs widely credited with helping popularise fine dining in the UK.
Alain Roux, Michel Sr’s son, took over the restaurant in 2002.
The Inn, originally a “shabby old pub” situated on the banks of the Thames, became one of their most lauded restaurants in Europe. It has held three Michelin stars – the highest possible accolade given out by the Michelin Guide – since 1985.
As well as running The Waterside Inn, Alain Roux has appeared on television as a celebrity chef judge on Masterchef: The Professionals.
The plunge in profits comes after a record 2022 for the company, which benefited from soaring sales as wealthy diners shrugged off the cost of living crisis and foreign visitors returned in the wake of the pandemic.
Sales at The Waterside Inn and its sister restaurants grew slightly in 2023, increasing by just under £50,000 to £9.06m.
“It is very pleasing to note that our customers, whether at The Waterside Inn or Roux at Skindles, remain happy to ‘buck the trend’ and to pay a premium price for a product and a service that is a real challenge to our competition,” the company said.
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