Couple to give away their restaurants to staff

L - R: Peter Kinsella, his wife Elaine, Lunya operations manager Tom Cavanagh, Lord Mayor's Consort Erica Kemp and Lord Mayor of Liverpool Richard Kemp

The owners of two restaurants have said they plan to give away their businesses to their staff.

Peter and Elaine Kinsella, who own two Spanish-inspired Lunya restaurants and delis in Liverpool, are to set up a John Lewis-style trust that will see the business transferred to their employees when they retire.

Mr Kinsella, 60, said "the more we looked into [selling the business], the less we liked the idea".

Instead, an Employee Owned Trust (EOT) will be formed to give the firm's 67 staff members shares in the company.

Peter Kinsella said the decision to give the business to the staff was "really personal" for him and his wife

The first Lunya restaurant opened in Liverpool's College Lane in 2010, before moving to its current, larger premises on the corner of Hanover Street in 2012.

A Manchester operation started in 2015 but was closed down during the coronavirus pandemic, and a third outlet was opened at the Albert Dock in 2018.

Mr Kinsella said: "Ten years ago we would have thought of retirement as making a shed load of money and going on a cruise and having a great time."

But he said his wife's 2021 cancer diagnosis had made the couple think differently about the future, and that there was "something really personal" about the decision to hand the business to their staff.

An EOT involves having an independent valuation, which is then sent to His Majesty's Revenue and Customs (HMRC).

If HMRC approves the plan, the profits up to the value of the business will be paid to Mr Kinsella and his wife, who is also 60, and then all profits thereafter will go to the staff shareholders.

Mr Kinsella said he hoped that by the time the business belonged to the staff, the restaurant industry would be in a better place.

He said: "We have had record-breaking turnover and have been bringing in more money than we ever have through sales, but costs like utilities have been shocking.

"Usually being busy means you are doing really well. At the moment it means you have a good chance of survival."

As for the response to the EOT plan from the staff, he said: "The people who have been here long-term and planning to stay long-term, they're really chuffed about it."

"I guess the 19 and 20-year-olds who are just passing through and doing it as a student job don't really see what all the fuss is about," he added.