Richard Caring, the hospitality tycoon dubbed the 'King of Mayfair', has blamed the UK's "lacklustre" economy for falling sales at his luxury restaurant group.

Caring's Caprice Holdings reported a four per cent dip in revenue to £90.5m in the year to January, which it attributed to rising employment costs and US tariffs.

The group's portfolio includes Sexy Fish in Berkeley Square, oyster restaurant J Sheeky and French brasserie Balthazar.

"Trading fell compared to the prior period which mirrored a lacklustre economic environment in the UK," the group's directors said. "The hospitality sector faced several cost headwinds in the period including increases to National Insurance and the National Minimum Wage."

"The company worked hard to continue providing value to its consumers in spite of cost pressures," they added.

At the Budget in 2024, then-Chancellor Rachel Reeves raised the rate and threshold of employer National Insurance Contributions (NICs), a move hospitality businesses have described as a punitive employment tax. The changes, which took effect in April 2025, raised the main employer rate to 15 per cent and cut the earnings threshold at which contributions begin from £9,100 to £5,000 — a combination trade bodies have warned hits labour-intensive sectors such as hospitality hardest because staffing makes up a large share of their costs.

Retail and hospitality sector leaders have urged Chancellor John Healey to unwind the tax hike, which they say is worsening the youth unemployment crisis.

Caprice Holdings cut more than 100 jobs in the year to January, with staffing numbers dropping from 1,111 to 1,001. The group reduced its employment costs by 13 per cent to £32m.

Caring slams Trump tariffs

The restaurant group also hit out at US President Donald Trump's tariff regime, listing it among the biggest risks faced by the business.

"Nationalist trade policies from geopolitical partners as well as UK fiscal policy has resulted in low economic growth," its directors said.

In April, Caring sold a majority stake in many of his hospitality ventures to an Abu-Dhabi-backed investor. Diafa, a luxury hospitality platform, took a £1.4bn stake in the portfolio, which included The Ivy restaurant empire, seafood eatery Scott's and members' club Annabel's.

Diafa is an affiliate of International Holding Company, Abu Dhabi's largest listed firm, and is chaired by Sheikh Tanoon bin Zayed al-Nahyan. The deal came amid a broader wave of Gulf investment into London's high-end hospitality and property market, and the reshaped ownership structure will shape how the group navigates the cost pressures its directors flagged.

In June, City AM revealed that Caring was in talks to buy iconic City restaurant 1 Lombard Street, which is owned by former Goldman Sachs banker Soren Jessen.