What can Gordon Ramsay teach us about Brexit?
We don’t know what Mr Ramsay is doing to mitigate the risk of Brexit, but we can tell you about his business Gordon Ramsay Holdings Limited.
According to its accounts filed with Companies House last month, the company has recruited a buying team to help mitigate increasing food costs and fluctuations in the value of the pound. The centralised buying team will do so by negotiating contracts with suppliers over the whole restaurant group, rather than on a restaurant by restaurant basis – a sensible step for any business to benefit from economies of scale. The company also expresses concerns over its ability to recruit staff and the economy as a whole. It doesn’t publish any answers to these issues, but the group is now on the right track returning to profit after the net loss it made last year.
This squeeze on food prices from restaurants, supermarkets and other retailers is one of the reasons why confidence levels among British farmers has plummeted (as measured by the National Farmers’ Union). According to their survey one in five farmers said they were reducing investment, with only one in ten saying that they were planning to increase investment. This is interesting because farmers were held out as one of the key supporters of leaving the EU prior to the referendum and their confidence will affect other areas, which are dependent on growth and investment in this sector.