Rising costs cause profits at The Waterside Inn to sink

The three Michelin-starred restaurant in Berkshire reported a pre-tax loss of £181,000 in its latest accounts for the year ended 31 December 2023, down from a pre-tax profit of £814,000 the previous year.

This was despite turnover showing ‘a modest growth’ on 2022’s figures, it said, up from £9.016m to £9.064m.

The restaurant said that while it was pleased that its customers were willing to pay a premium price for its food and service, rising costs had had an impact on its overall performance.

“Unfortunately the overheads of the group have been increasing pace, with a notable increase in staffing costs being the dominating factor.

“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 restaurant said it had introduced a tronc system and a ‘generous pay structure’ to attract and retain staff and had also improved working conditions for its team.

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.

Looking ahead, the business outlined a number of principal risks and uncertainties that it said could adversely affect it. These include UK disposable income growth, consumer confidence, staff shortages, increased operating costs, global and domestic political events, and the strength of Sterling, which it said affects both costs and the number of overseas visitors, which remain a core clientele for the restaurant,