Popular restaurant chain founded by owner of Wagamama collapses into administration Hospitality businesses face tough trading conditions By MIKE SHEEN Updated: 12:47 BST, 24 July 2025 A popular restaurant chain created by Wagamama founder Alan Yau has become the latest hospitality business to fall into administration. Busaba Eathai drafted in administrators from Leonard Curtis earlier this month, potentially marking the beginning of the end for the 25-year-old group, Companies House documents show. At its peak, the chain had 16 restaurants before financial difficulties forced it to cut back to 12 in 2020. It still has a location at Lakeside Shopping Centre in Essex, and six sites across London from Westfield shopping centre to the 02 Arena. Yau opened his first restaurant in 1999 on Wardour St in London's Soho. Busaba's most recently filed full accounts date back as far as the 12 months to 17 September 2023, in which time the group slumped from a £200,000 annual profit to a £600,000 loss. Heyday: Busaba Eathai had 16 restaurants in the south of England at its peak RELATED ARTICLES Lindsey oil plant set to close with loss of 400 jobs leaving... Popular restaurant shuts all locations after 20 years on the... Share this article It blamed the loss on higher costs, weaker London footfall owing to the cost of living crisis, and 'summer-wide disruption caused by industrial action on train and tube network'. The group only avoided a compulsory strike off last month after Busaba showed 'cause' to the registrar, according to the documents. Busaba is now fronted by chief executive Winston Robert Matthews. Chancellor's tax raid spells last orders for rural pubs, as Clarkson warns boozers are on the brink Matthews currently also serves as a director of Redwin Investments, Soho Investments and Ray's Manufacturing, the latter of which is overdue on its accounts, according to Companies House. Busaba is the latest hospitality firm to face financial troubles as the sector shoulders a huge increase in employment costs after hikes to national insurance contributions and the living wage earlier this year. Hospitality firms also face higher energy costs, while the industry says business rates are too high. Popular dim sum restaurant Ping Pong recently closed its remaining restaurants, bringing an end to 20 years in operation, while The Coconut Tree is set to be wound-up. Meanwhile, Oakman Inns, Brewdog and Deep Blue Restaurants have recently announced site closures. Busaba has been contacted for comment. DIY INVESTING PLATFORMS Easy investing and ready-made portfolios Hargreaves Lansdown Hargreaves Lansdown Free fund dealing and investment ideas interactive investor interactive investor Flat-fee investing from £4.99 per month InvestEngine InvestEngine Account and trading fee-free ETF investing Trading 212 Trading 212 Free share dealing and no account fee Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Compare the best investing account for you Share or comment on this article: Popular restaurant chain founded by owner of Wagamama collapses into administration Add comment