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Is Gordon Ramsay's Wealth Really Just Debt?


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I hope Gordon's finances are based on more than that somewhat forlorn hope.

He's done a shedload of Telly, books etc. He should be loaded.

Ahhh, you're just JEALOUS Bubbsie. :P Isn't that your standard response when someone has a pop at you?

I like Ramsey. He believes in high standards, hard work and has zero tolerance for the kind of half-assed indifference that passes for customer service in the UK.

A 2 second search on his business methods opening a new resturant - he makes the top people "partners"

They are basically bullied, servile, 'franchisees' - tied to a bonus system!

Gordon is the 'publicity' part of the Franchise system - cleverly manipulated thru his media appearances/shows!

Stiffing his servants Partners - Royally for his Porsches/Ferraris etc

Cons of Franchising - one example

Franchisors will take a regular slice of your takings as royalty fees.

If you have a tight profit margin, the bad news is that this fee is deducted from your actual turnover, not the surplus you make.

PS Why doesn't text strike-thru ever work on this board - that's the 3rd time it hasn't worked for me!

Edited by erranta
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http://business.timesonline.co.uk/tol/busi...icle6036272.ece

WHEN Antony Worrall Thompson pulled the plug on his restaurant empire in February, he painted himself as another hapless victim of greedy bankers.

The celebrity chef told a depressing tale of Lloyds Banking Group demanding he put up his family home in Henley-on-Thames, Oxfordshire, as security on a loan or forfeit his six restaurants and axe up to 100 staff. “I am furious that the banks did not support me,” he said then.

Now the publication of the administrator’s report into the business has revealed a rather different picture, indicating that the restaurants’ demise was largely the result of some poor management decisions.

It states that the chef’s company, AWT Restaurants, overstretched itself and was too slow in reacting to the economic downturn.

The administrator said the decision to take on two new sites in Windsor, along with the money spent on refurbishing those premises, “put an inordinate strain on the company’s borrowing facilities”.

It also said the company “had not responded sufficiently quickly to the downturn in the sector arising from the credit crisis”, adding that “the combined effects of increased raw-material prices and overstaffing in certain outlets meant declining margins”.

This, coupled with a fall in demand, ultimately led to a squeeze on its financial resources, leaving the business with “insufficient cash and overdraft facilities to pay creditors by the end of January 2009”.

The report, by BHG, the accountancy firm appointed as administrator in February, confirms that Worrall Thompson was asked to put up his house as security in exchange for Lloyds extending an overdraft by £200,000. The chef, however, was not prepared to risk losing his home and was forced to call in administrators instead.

This was despite the fact that AWT Restaurants prepared forecasts for Lloyds showing that it would be viable in the long term, especially if it cut its costs.

Immediately after the business collapsed, Worrall Thompson bought back two of the restaurants as well as the Windsor Larder, a delicatessen, for a total of £210,000.

This weekend Worrall Thompson admitted he had made big mistakes. “I am not blaming anyone,” he said. “I am at the top of the tree and I have to take the blame. We should have reacted quicker [to the downturn].”

He said he had been slow to put up prices when the cost of beef rose sharply last year and said the purchase of the Windsor Larder was “in hindsight, the wrong decision”.

“We should have sat on our money and seen through the recession,” he said

.
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Great.

I never liked him.

The man's a COOK, ferkrissakes!

What weird mechanism makes him rich, other than debt?

He's a brand. And quite a strong one too. He will make money recession, closed restaurants or no. People aren't fooled, they know that he's spread himself too thin; you can only make so much of that brand.

Regarding expensive food - I'm no foodie, but I've been to chef's table at Claridges and to his Hospital Road restaurant (by my company). The food in both cases was little short of incredible. Also went to Boxwood cafe for the wife's birthday - 3 course lunch with no wine was 100 quid, and the food was very very good.

Then we went to Fortnum's for afternoon tea. That was 65 quid and it was a total rip-off.

Ramsay is very abrasive on his tv shows but he's an incredible manager of people. If you ignore the swearing he's incredibly incisive and psychologically astute. People complain about him being rude but he's supposedly got two days to turn around a business usually run by idiots or other egomaniacs.

I'll take him over Oliver.

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He's a brand. And quite a strong one too. He will make money recession, closed restaurants or no. People aren't fooled, they know that he's spread himself too thin; you can only make so much of that brand.

Regarding expensive food - I'm no foodie, but I've been to chef's table at Claridges and to his Hospital Road restaurant (by my company). The food in both cases was little short of incredible. Also went to Boxwood cafe for the wife's birthday - 3 course lunch with no wine was 100 quid, and the food was very very good.

Then we went to Fortnum's for afternoon tea. That was 65 quid and it was a total rip-off.

Ramsay is very abrasive on his tv shows but he's an incredible manager of people. If you ignore the swearing he's incredibly incisive and psychologically astute. People complain about him being rude but he's supposedly got two days to turn around a business usually run by idiots or other egomaniacs.

I'll take him over Oliver.

Is that why he lied about playing for Rangers? For what it`s worth, I think if he was really wealthy he wouldn`t do half the TV he does. The last show I saw with the phone link up fast editing format made him look desperate. Fast editing suits presenters in their early twenties and stoned viewers in their early twenties and younger. Someone of his age does not sit comfortably with that format. If there was really an audience for his culinary skills, he could have insisted on a straight to camera informative interesting cooking show, but unfortunately the average TV viewer in the UK now has the attention span of a piss-head at a Roy Chubby Brown gig, and the "wealth" to eat at KFC, both not good for a culinary genius who needs a lot of people to pay top dollar to stay in business?

I think if he had really "made it" he could sit back, cook at one or two of his restuarants, and give the desperate wanna-be still in the public eye stuff a rest? To me him doing the stuff he does would be like Mark Knopfler advertising guitar lessons, or Buffet teaching finance at some part-time college, or DeNiro doing street mime for dimes, they don`t do it because they don`t need to, the brand is secure, the talent has already brought more money than they can handle? Sure the TV stuff is bringing him more than dimes, but why does he keep doing it, if not to drum up publicity for failing restuarants? I think he has problems, but we shall see.

BTW, Roy Chubby Brown strikes me as a real character, who stands by what he really thinks, who will never be accepted mainstream because he would not suck the **** of the prevailing "culture" the way Ramsay has. ( I`m going by what I saw of him on TV last night)

Edited by dances with sheeple
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In the real world, my job brings me into contact with a number of businesses which blame the recession for their mis management. This is much more likely when the boss has an ego or a reputation for being good at what they do.

The likes of Ramsey will have to be very careful that his ego doesn't force him to over expose himself on TV and this poisions his brand.

Its the downside of using the media to grow your brand. Technically, it can be considered mis management when it goes wrong - getting your marketing wrong is just as bad as not being able to get your accounts to add up correctly!

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WHEN Antony Worrall Thompson pulled the plug on his restaurant empire in February, he painted himself as another hapless victim of greedy bankers.

The celebrity chef told a depressing tale of Lloyds Banking Group demanding he put up his family home in Henley-on-Thames, Oxfordshire, as security on a loan or forfeit his six restaurants and axe up to 100 staff. “I am furious that the banks did not support me,” he said then.

Now the publication of the administrator’s report into the business has revealed a rather different picture, indicating that the restaurants’ demise was largely the result of some poor management decisions.

It states that the chef’s company, AWT Restaurants, overstretched itself and was too slow in reacting to the economic downturn.

The administrator said the decision to take on two new sites in Windsor, along with the money spent on refurbishing those premises, “put an inordinate strain on the company’s borrowing facilities”.

It also said the company “had not responded sufficiently quickly to the downturn in the sector arising from the credit crisis”, adding that “the combined effects of increased raw-material prices and overstaffing in certain outlets meant declining margins”.

This, coupled with a fall in demand, ultimately led to a squeeze on its financial resources, leaving the business with “insufficient cash and overdraft facilities to pay creditors by the end of January 2009”.

The report, by BHG, the accountancy firm appointed as administrator in February, confirms that Worrall Thompson was asked to put up his house as security in exchange for Lloyds extending an overdraft by £200,000. The chef, however, was not prepared to risk losing his home and was forced to call in administrators instead.

This was despite the fact that AWT Restaurants prepared forecasts for Lloyds showing that it would be viable in the long term, especially if it cut its costs.

Immediately after the business collapsed, Worrall Thompson bought back two of the restaurants as well as the Windsor Larder, a delicatessen, for a total of £210,000.

This weekend Worrall Thompson admitted he had made big mistakes. “I am not blaming anyone,” he said. “I am at the top of the tree and I have to take the blame. We should have reacted quicker [to the downturn].”

He said he had been slow to put up prices when the cost of beef rose sharply last year and said the purchase of the Windsor Larder was “in hindsight, the wrong decision”.

“We should have sat on our money and seen through the recession,” he said

Careful what you read in papers. The administrators BHG aren't really blaming it on Antony with their 'independent' assessment of what went wrong it's just a smokescreen.

If Antony was overstretching himself financially you'd expect his accountants to flag it up.

Who were his accountants? Er, I have a strong feeling it'll most likely be BHG.

Edited by Soon Not a Chain Retailer
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"All mistresses hate the credit crunch," says Sarah Symonds, the alleged former mistress of famed chef Gordon Ramsay. "They are the first little luxury to be dropped, along with those private golf memberships."

At least he got rid of his mistress before the Ferrari was repossessed. :lol::lol:

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if he was really wealthy he wouldn`t do half the TV he does

A bit like Ant & Dec. They're on £20 million a year, which is why you hardly see them on the box these days.

Jonathan Ross is another one, he's so rich, he stopped doing telly years ago.

:rolleyes:

Gordon Ramsay, the celebrity chef, has become the highest paid chef in the world taking home around £15million a year thanks mainly to his television shows.

Link

Let's not forget that Ant & Dec, Wossy and Sir Swearsalot are all UNDER CONTRACT. They don't make TV cos it's a larf, it's a job.

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