Lunya, the Catalonian Deli, Restaurant and Bar in Liverpool has transformed the business’ ownership by becoming an Employee Owned Trust (EOT).
An EOT is a government-backed ownership model with the aim of increasing employee engagement to ensure the long-term future and stability of businesses in the UK.
The business is valued by independent accountants and the founders’ shares are sold to a specially created Employee-Owned Trust. Lunya Ltd will remain as the trading company, but with all the shares held by the trustee of the EOT.
The EOT is created so that the future profits of the business are paid to the owners, up to the agreed valuation. After that point, the profits of the business are capable of being distributed for the benefit of all staff…very similar to the John Lewis model.
The transition is unique to the hospitality industry in the UK, enabling co-owners Peter & Elaine Kinsella to eventually retire securing Lunya’s future and preserve its core values.
Lunya is best known for bringing authentic flavours of Spain to the UK, having been founded in 2010 by the Kinsella’s.
Peter enthused that he was proud to announce Lunya’s transition saying: “This significant change marks a new chapter in Lunya’s journey, as it places the future of the business in the hands of our dedicated staff, ensuring the continuation of our unique culinary and cultural experience for years to come.
“The move to employee ownership reflects Elaine’s and my belief that the people who have been integral to Lunya’s success should have a stake in its future. This new structure not only rewards the hard work and dedication of the staff but also empowers them to play a direct role in the restaurant’s continued growth and innovation as we gradually retire.”
Co-owner Elaine was diagnosed with Myeloma in 2021, an incurable blood cancer, and has taken a back seat in the business. Peter will continue to actively lead Lunya, hoping to fully retire within an approximate 7-year timescale, but scaling back some of his involvement over that time. His role will be that of Executive Chairman.
Tom Cavanagh, the Director of Operations who has been managing Lunya on a day-to-day basis for nearly two years said: “The team is really excited by this opportunity given to us by Peter and Elaine.
“We are very grateful for their generosity, in effect, gifting us the business, and we plan to continue to run and develop Lunya, so it continues to be recognised as one of the very best Spanish restaurants in the UK. Personally, I love leading the business and will be working very closely with Peter and Elaine, so they get the retirement they deserve in the future.”
Under the new EOT model, Lunya’s employees will increasingly have a greater say in the business’s strategic direction and a stake in its financial success. This model fosters a culture of collaboration, innovation, and shared purpose, ensuring that every team member is invested in delivering an exceptional dining experience to customers.
Elaine and Peter hope an EOT will encourage staff to stay for longer and financially benefit long term from their involvement.
Elaine in paying a special tribute to the team said: “This transition is a testament to the incredible people who make up the Lunya family. Our team is at the heart of everything we do, and we are thrilled to see them take an even greater role in shaping the future of Lunya. We believe this new chapter will bring fresh ideas, renewed energy, and continued success; and eventually significant financial rewards for our team.”
The legal arrangements for the EOT have been carried out by Brabners LLP with the financial arrangements delivered by Mitchell Charlesworth Accountants.
Partner at Brabners, Stephen Hadlow said: “The move to employee-ownership heralds a bright new chapter for Lunya, but without sacrificing the brand integrity and independence Peter and Elaine have built over the years.
“Supporting one of Liverpool’s quintessential food destinations on its adoption of employee-ownership demonstrates the versatility of the EO model as a succession strategy which now spans a wide and increasingly diverse spectrum of industry sectors.”
More information about Lunya can be seen here.
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