Revealed: The Painful Reason Restaurant Owners Decided to Give Their Businesses to Employees

A couple who own two restaurants have decided to donate their business to their “wonderful” team to fight a tragic health battle.

Peter and Elaine Kinsella, both 60, have run Lunya, a Spanish-inspired restaurant in Liverpool, for 14 years, but had to plan its retirement after Elaine was diagnosed with cancer.

Lunya has been such a success that it took the couple just two years to open their second restaurant and deli in a prime location on the Royal Albert Dock.

Peter said: ‘We’re not getting any younger! Elaine’s blood cancer (myeloma) is becoming active again and needs more treatment to get back into remission and we need to plan our retirement.

“Becoming team-owned is a great way to recognize and reward our wonderful team.”

Peter and Elaine Kinsella, both 60, decided to turn their restaurant into an Employee Owned Trust after Elaine was diagnosed with blood cancer

The couple opened Lunya, a Spanish-inspired restaurant in Liverpool, in 2010.

Lunya has been such a success that it took the couple just two years to open their second restaurant and deli, Lunyalita, in a prime location on the Royal Albert Dock.

The couple is photographed signing a document with lawyers

The restaurant owner confirmed that although his wife has already been forced to step away from the business to deal with her cancer diagnosis in 2021, he will remain in charge of operations for another seven years.

But in the meantime, Lunya Limited has already become an Employee Owned Trust (EOT).

This means that each of Lunya’s 67 employees has a stake in the company – a similar model to John Lewis.

Peter told BBC News that the couple had previously envisaged retiring, resulting in them making ‘a lot of money’, but ‘the more we looked into (selling the business), the less we liked the idea’.

Apparently, Lunya made record profits last year, and because of this move, much of that will become a benefit for employees.

If Her Majesty’s Revenue and Customs (HMRC) accepts the plans, profits up to the value of the business will go to Mr and Mrs Kinsella, and all subsequent profits will be distributed among employees.

Peter added: ‘At a time when there isn’t a lot of good news coming out of the hospitality sector, this bucks that trend and is great news for our business!’