Gordon Ramsay on Fox's 24 Hours To Hell And Back.
On a given day at Caesars Palace in Las Vegas, chef Gordon Ramsay’s eponymous pub and grill will make around $20,000 from fish and chips. The 1,200-square-foot space sees around 1,300 guests a day. Since debuting on the strip in 2012, Ramsay has added another location in Atlantic City. Combined, both have sold more than 300,000 fish and chips dishes. “It’s taken the nation by storm. I look at the lines outside the door,” Ramsay told Forbes on the phone earlier this week.
His steak restaurant, which launched seven years ago at Caesars’ Paris Las Vegas Hotel, has meanwhile expanded to Atlantic City and Baltimore, luring diners with beef Wellingtons (more than 250,000 sold since 2012) and sticky toffee puddings (more than 200,000 sold). That kind of demand needs to be taken advantage of quickly. Which is why a year ago, Ramsay started looking for a partner to help him rapidly expand these brands. “I wasn’t ready to pedal this bike up a hill on my own. That would take me another 15 years,” Ramsay says. “Let’s get this thing done.”
And now Ramsay has inked a deal with Lion Capital, a private equity outfit with offices in London and Los Angeles, which has scaled restaurants like wagamama, the pan-Asian noodle chain, as well as brands like Kettle chips and Jimmy Cho. Lion now owns 50% of Gordon Ramsay North America, while the other 50% is controlled by Ramsay. He declined to comment on the size of the transaction, but the deal stipulates that Lion will invest $100 million over five years to build an empire of Gordon Ramsay restaurants across America. The joint venture expects to open 100 new locations across the U.S by 2024.
“I fell in love with this country 20 years ago. There’s a will here. My goal, right now, is to establish one of the most exciting food brands in America,” Ramsay says. “Being a control freak, I needed the right partner on board. There’s a lot of businesses that don’t like that kind of stranglehold. For me, the partnership was crucial.”
Ramsay already has eight restaurants across Las Vegas, Atlantic City and Baltimore in partnership with Caesars Entertainment. There’s five concepts in Las Vegas, of which three are brands that will be expanded through the new deal — Gordon Ramsay Steak, Gordon Ramsay Pub & Grill, Gordon Ramsay Fish & Chips.
“Vegas has been the most amazing platform. Everyone thinks it is just full of partying and entertainment, but it’s one of the most severe and revered culinary capitals anywhere in the world. You don’t get a second shot at it,” Ramsay says.
The restaurant concept, Gordon Ramsay Steak, launched in 2012 inside Caesar Entertainment’s Paris ... [+]
The deal will also bring two more concepts to the U.S.: Gordon Ramsay Street Pizza and Gordon Ramsay Bread Street Kitchen, which he calls “a modern Cheesecake Factory.” It already has successful locations in London, Hong Kong, Dubai and Singapore.
Ramsay is a six-time Celebrity 100 listmaker who earned $62 million last year, mainly from his television deal with Fox, in which he produces and stars in shows MasterChef, Hell’s Kitchen, MasterChef Jr. as well as 24 Hours to Hell and Back.
“It may seem aggressive, but we’re not opening up 80 or 90 of the same restaurant. We’re crossing over with a multilayered brand. That’s the bit that I’ve worked hard at. We’ve divided and conquered.”
Ramsay’s 15 restaurants in London won’t be impacted by the Lion Capital investment. The announcement comes just a few weeks after British chef Jamie Oliver announced that all but three of his 25 restaurants in the U.K. will close.
“It’s a very oversaturated market there, and you need to be very careful with that level of expansion. It’s unfortunate to see the situation he got himself into, but that’s what happens when you’ve got a juggernaut that’s out of control, as opposed to being in control,” Ramsay says. “I’ve sat patiently, learning from other people’s mistakes.”
