Rick Stein's Cornish empire grapples with losses as Reeves' tax raid hits hospitality

Rick Stein's Cornish restaurant and hospitality empire faced mounting losses in 2024 as Chancellor Rachel Reeves' employer tax raid tightened margins across the sector. At the Seafood Restaurant in Padstow, revenues fell by £1.3 million to £18.9 million, and pre-tax losses widened from £204,000 to £459,000. Including sales from Steins Trading, total revenues across the restaurant business fell 5.4% to £30.4 million.

From April 2025, National Insurance contributions (NICs) for employers rose from 13.8% to 15%, while the threshold at which employers start paying NICs was cut from £9,100 to £5,000 per year. Reeves’ nearly £20 billion-a-year tax raid has sparked a broad backlash from the hospitality sector, with restaurateurs warning the tax hike comes as consumers tighten belts amid economic pressures. Mr Stein was among a wave of hospitality business owners who urged the government to ease pressures in the autumn Budget. Nearly 90,000 hospitality jobs have been lost since the announcement.

According to the Telegraph, Stein's companies attributed the losses to the prolonged effect of the national cost of living crisis, with persistent high inflation and rising costs for ingredients and energy. The publication noted that the price of staples and energy has been partly mitigated by menu adjustments, but the burden remains evident. In March, some customers criticized Stein's Fish & Chips as overpriced, with takeaway haddock and chips priced at a minimum £15.95 and dine-in at £19.95; a side of mayo adds £2.25.

Ian Fitzgerald, managing director of Seafood Restaurant (Padstow), said: 'Hospitality is a people-first industry, and we are proud to employ so many talented professionals across our restaurants whose passion for food and hospitality continues to shine through. The Chancellor, Rachel Reeves, needs to recognise the importance of employers like us and ease our financial pressures in the autumn Budget to prevent further job losses and support the recovery of the hospitality industry.'

Mr Stein and his former wife Jill opened their first restaurant in Padstow, Cornwall, 50 years ago. Since then, his business portfolio has expanded across Cornwall and other parts of the UK, and he has become a familiar face on television through programmes such as Rick Stein's Cornwall and Rick Stein's Secret France. The group operates The Seafood Restaurant, St Petroc's Bistro, Rick Stein's Cafe, Stein's Fish & Chips, The Seafood Bar and Fishmongers, and Ruby's Bar in Padstow, along with the nearby Cornish Arms and Stein's Gift Shop. He also runs a Padstow cookery school. Stein's Fish and Chips opened in 2004. The Mail has contacted Seafood Restaurant for comment.