Lunya, the Catalonian Deli, Restaurant and Bar in Liverpool, has transformed its ownership structure by becoming an Employee Owned Trust (EOT).
An EOT is a government-backed model aimed at enhancing employee engagement to ensure the long-term stability of businesses in the UK. The business is appraised by independent accountants, and the founders’ shares are transferred to a newly established Employee-Owned Trust. While Lunya Ltd will continue to function as the trading entity, all shares will be held by the EOT trustee.
With this model, future profits are allocated to the owners up to an agreed valuation, after which the profits can be shared among all staff—similar to the John Lewis model. This transition is a first for the hospitality sector in the UK, allowing co-owners Peter and Elaine Kinsella to comfortably retire while securing Lunya’s future and preserving its core values.
Founded in 2010, Lunya is renowned for bringing authentic Spanish flavors to the UK. Peter expressed pride in this transition, stating, “This significant change marks a new chapter for Lunya, placing its future in the hands of our dedicated staff and ensuring that our unique culinary and cultural experience continues for years to come.”
He added, “The move to employee ownership reflects Elaine’s and my belief that those integral to Lunya’s success deserve a stake in its future. This new structure not only rewards the hard work of our team but also empowers them to participate directly in our restaurant’s growth and innovation as we gradually step back.”
Co-owner Elaine, who has been diagnosed with Myeloma, has scaled back her involvement, while Peter plans to continue leading Lunya as Executive Chairman and hopes to retire over the next seven years. Tom Cavanagh, the Director of Operations, expressed enthusiasm about the opportunity provided by Peter and Elaine. “We are incredibly grateful for their generosity in essentially gifting us the business, and we aim to continue to develop Lunya as one of the very best Spanish restaurants in the UK,” he stated.
Under the EOT model, employees will have an increased say in the business’s strategic direction and a stake in its financial success, fostering a spirit of collaboration and innovation. Elaine and Peter anticipate that the EOT will encourage staff retention and provide long-term financial benefits for employees.
Elaine remarked, “This transition is a testament to our amazing team, who are central to everything we do. We are thrilled to see them take a larger role in shaping Lunya’s future, believing this chapter will bring fresh ideas and continued success for all.”
The legal transition was managed by Brabners LLP, while Mitchell Charlesworth Accountants handled the financial arrangements. Stephen Hadlow, a partner at Brabners, highlighted that this move to employee ownership opens a bright new chapter for Lunya without compromising the brand integrity established by Peter and Elaine.
For more information about Lunya, you can visit their website.
