Rick Stein's Cornish empire hits losses as Reeves' tax raid weighs on hospitality

Rick Stein's Cornish business empire posted a drop in 2024 revenue and widened losses as it grapples with the government's employer tax changes, adding to pressures facing the hospitality sector.

At the Seafood Restaurant in Padstow, revenue fell by £1.3 million to £18.9 million, while pre-tax losses widened from £204,000 to £459,000. Including sales from Stein's Trading, total revenues across the group’s restaurant business fell 5.4% to £30.4 million.

The downturn comes as the government’s National Insurance contributions (NICs) on employers were increased in 2025, a move that has drawn wide criticism from the hospitality industry. Effective from April 2025, NICs rose from 13.8% to 15%, and the threshold at which employers begin paying NICs was reduced from £9,100 to £5,000 per year. The government says the adjustments are needed to bolster public finances, but owners warn they add to operating costs at a time when consumer demand remains fragile.

A report in The Telegraph quoted Rick Stein’s company as attributing the losses to the prolonged effect of the national cost-of-living crisis, with high inflation persisting into the year and consumer confidence diminishing. It noted that rising costs for ingredients and energy have been partially mitigated by menu and price adjustments.

In March, diners on the coast of Cornwall publicly questioned some menu pricing and portions, with critics describing Stein’s fish and chips as overpriced and alleging they had been served in “child size portions.” The takeaway haddock and chips is priced at a minimum of £15.95, rising to £19.95 for dining in, with an additional £2.25 charged for a pot of mayonnaise.

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 Mr. Stein himself has become known for television programs including Rick Stein's Cornwall and Rick Stein's Secret France. The Stein brand in Padstow now includes The Seafood Restaurant, St Petroc’s Bistro, Rick Stein’s Cafe, Stein’s Fish & Chips, the Seafood Bar and Fishmongers, Ruby’s Bar, The Cornish Arms, and Stein’s Gift Shop, along with a Padstow cookery school. Stein’s Fish and Chips opened in 2004. The area’s tourism footprint has been closely associated with the chef’s name, earning Padstow the nickname Padstein.

The Mail has contacted Seafood Restaurant for comment."