Downturn eats into Ramsay bistro profits

Michelin-starred British chef and television personality Gordon Ramsay's restaurants in Britain have suffered a 90 per cent drop in profits as the recession began to bite, it has been revealed.

Ramsay's latest company accounts show that the precarious situation forced the chef and his father-in-law and business partner Chris Hutcheson to pump STG5 million ($A10.17 million) into the business.

The abrasive chef has blamed its problems on over-ambitious expansion and the closure of key London restaurants such as the Savoy Grill, which was shut because the luxury hotel is being refurbished.

Pre-tax profits tumbled from STG3.05 million ($A6.21 million) in 2007 to STG383,325 ($A779,987.79).

Ramsay's international expansion has also raised eyebrows. A spokeswoman for the group said the overseas restaurants would report their results later this month.

He has an award-winning restaurant in Versailles near Paris and branches in County Wicklow in Ireland, in Tuscany, Sardinia, Dubai, Tokyo, Cape Town, New York, Florida and Los Angeles.

The company said that after a restructuring of the British operations, it was confident the group had "successfully undergone change for the better".

Ramsay added: "The financial year ending 2008 was tough on our group and all involved, as well as the rest of the economy that faced a spiralling downturn.

"We have regrouped and learnt some valuable lessons and the business has now returned to a position of strength."