Fish and chip chain Deep Blue Restaurants has sold nine of its sites to finance the growth of its Harry Ramsden’s brand.
According to the company’s latest accounts, the restaurants were sold between October 2024 and May 2025 as part of a “strategic disposal programme”. The proceeds supported both the refurbishment of key Harry Ramsden’s locations, such as Brighton in May 2025, and national and international marketing campaigns to promote the brand.
It added that further disposals will be considered “where opportunities to realise value or to exit underperforming sites are identified”.
Deep Blue Restaurants, the UK’s largest operator of fish and chip restaurants and takeaways, owns the Fish & Chips @ 149 and Harry Ramsden’s brands, having acquired the latter from Boparan Restaurant Group in 2019.
For the year ending 24th September 2024, turnover fell 2.5%, from £24.4 million to £22.9 million. Gross profit also declined 1.2%, from £17 million to £15.8 million, however, a healthy gross profit margin of 69% was reported compared to 66.9% in the previous year.
The company attributed the downturn to several economic challenges. “The global events that have driven inflation, significant rises in energy prices, supply chain issues and a cost of living crisis were responsible for another challenging year in 2024,” it said in its accounts.
Labour shortages, while improving, remained a key issue. The company said it continues to focus on attracting and retaining staff by “reviewing pay rates, improving staff benefits and improving our upskilling and training programmes”.
Looking ahead, Deep Blue expects to maintain positive cashflow through a number of initiatives, including improvements in working capital management, workforce planning, energy and supplier cost savings, and a full review of its estate.
The company also noted that profits were boosted by franchising and licensing of the Harry Ramsden’s brand. A new licensing agreement with a major UK supermarket is expected to generate “substantial cash inflows”.
Chief executive James Fleming commented: “As in prior years, global events, the cost-of-living crisis and food cost inflation continued to present headwinds to trading in the first three quarters of FY 2025. Despite this, performance has been robust. Looking at the sites on a like-for-like basis (to account for the disposal of some stores) the Group is trading in line with the budget set at the start of the year.
“There has been continued rationalisation of central administrative costs, as well as ensuring cost discipline across labour and cost of sales to maintain a health gross margin. Continued successes with the franchising and licensing of the Harry Ramsden’s brand has further driven revenue and profitability across the Group. Management continue to focus on developing this element of the business, and there have been further new contract wins into 2025. This channel is increasingly becoming a valuable contributor to the Group’s future performance, and in April 2025, led to the strategic decision to recruit a new specialist, specifically to oversee franchising and licensing going forward.”
