10:34 14 August 2009
Celebrity chef, Gordon Ramsay, has revealed that he nearly went bankrupt because of the recession.
In an interview with Fox News in America, Ramsay acknowledged that the past couple of years had been "a nightmare" as his profits from his restaurant empire had sharply plummeted from £3million to £400,000.
The TV chef, known for his foulmouthed rants, was advised to file for bankruptcy, however, in a bold move he and his father-in-law used £5million of their own money to save the flagging businesses.
Ramsay has a chain of 20 restaurants around the globe including eateries in Tokyo, Los Angeles, Florida, Capetown, three in New York, 13 in London and five in Europe.
The experience has taught him a valuable lesson, he admitted in the interview: "The industry was getting far too arrogant, they weren't respecting customers enough and they forgot the customers were king.
"Customers just disappeared," he said. "Those that were in the restaurants weren't drinking wine. All were on tap water.
"Then we had a huge downturn, Monday to Thursday. Your staff costs are the same, your running costs are the same. It was a nightmare."
To avoid administration, Ramsay cut his 1,200 staff by 15% and began using cheaper cuts of meat to stay afloat.
Despite the difficulties of his businesses, Ramsay's TV career is blooming.
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