Ottolenghi Group swings to a loss but cuts staff turnover

Ottolenghi Group has seen a fall in staff vacancies but says it remains challenging to recruit talented chefs.

Last year, the restaurant group said it was forced to cut opening hours at some sites after struggling with a shortage of chefs.

However, filings for the year to 31 March show the number of staff employed by the company rose from 418 to 495 in 2024.

The group has cut its open vacancies to less than 2% while its rolling staff turnover rate fell to 12%, lower than the industry average of 25%.

“Recruitment of talented chefs in the wake of the UK’s cessation of membership of the European Union and Covid-19 continues to prove challenging but overall, we are seeing our vacancies fall compared to the prior financial year,” the accounts read.

“The recruitment and retention of talented staff is a key priority for the management and the board at this time.”

 

Digitising the recruitment process and the launch of an apprenticeship scheme and a management development programme helped cut staff turnover, the company said.

Meanwhile, workshops on cooking, service and guest skills, as well as supplier visits and coaching have been used to increase employee engagement.

The investment comes amid a period of growth for the business, which saw turnover rise 11% to £30.9m during the year.

However, the company said it had struggled with rising food and utility costs and a 10% increase in the National Minimum Wage while investing in new openings and developing a wholesale range for Waitrose. This pushed the business to a pre-tax loss of £941,725, down from a profit of £769,671 the previous year.

During the year, Ottolenghi Group began expanding outside of its traditional central London heartland. This saw the launch of its first restaurant outside of the capital at Bicester Village in Oxfordshire and an opening in Hampstead in north London.

The group has signed the lease for its first restaurant south of the Thames in Richmond, which is due to open in 2025, and said it will “continue to explore expansion outside of Zone 1 and Zone 2 in London”.

In September the group announced a deal to open its first overseas restaurant at the Mandarin Oriental hotel in Geneva, Switzerland, in the 2025 financial year.

 

“We will also be focusing on the expansion of the wholesale business, with further products and entry into new international markets,” the group said.

Chef Yotam Ottolenghi founded his eponymous restaurant group with Sami Tamimi in London’s Notting Hill in 2002.

It has since expanded to seven delis, two restaurants, and a successful retail and catering arm.