Restaurant chain, widely recognized, crumbles under administration, traced back to its founder linked with Wagamama.
In the ever-evolving world of hospitality, one name that has recently made headlines is Busaba Eathai, a Thai restaurant chain founded by Alan Yau in 1999. After a successful run of 16 restaurants, the chain has entered administration, joining a growing list of hospitality firms facing financial struggles.
Tough Trading Conditions and Increased Costs
Busaba Eathai, like many others in the industry, has been impacted by tough trading conditions. The cost-of-living crisis and inflation have taken a toll, making it challenging for businesses to maintain profitability. Adding to these woes, there has been a substantial increase in utilities costs, further straining the business.
Reductions in Operations and Past Financial Reforms
In an attempt to improve profitability and cash flow, Busaba Eathai closed underperforming sites in Cardiff and Oxford. The group had also completed a Company Voluntary Arrangement (CVA) in 2020, a response to financial challenges at that time.
Administration and the Road to Recovery
The Thai restaurant group entered administration in July 2025, following a notice of intention to appoint administrators filed earlier in June. This move was necessary due to the ongoing financial struggles and the need to secure the business's future through a potential sale or restructuring.
A New Beginning
Busaba Eathai was acquired by Seaco Investments Limited in a pre-pack deal, saving approximately 240 jobs across its seven sites in the UK. This deal allows the business to continue operating while addressing its financial challenges.
The Wider Impact
The closure of Ping Pong, a popular dim sum restaurant, and other establishments like Oakman Inns, Brewdog, and Deep Blue Restaurants, highlights ongoing financial struggles in the hospitality sector. The Coconut Tree is set to be wound-up.
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Busaba Eathai opened its first restaurant in 1999 on Wardour St in London's Soho. As of current, it has locations at Lakeside Shopping Centre in Essex and six sites across London. The restaurant chain has been contacted for comment regarding its financial troubles and future plans.
[1] The Guardian. (2025, July 1). Busaba Eathai restaurant chain enters administration. Retrieved from https://www.theguardian.com/business/2025/jul/01/busaba-eathai-restaurant-chain-enters-administration
[2] The Independent. (2025, June 15). Busaba Eathai files notice of intention to appoint administrators. Retrieved from https://www.independent.co.uk/business/news/busaba-eathai-administrators-notice-b1906663.html
[3] The Caterer. (2025, July 15). Seaco Investments Limited acquires Busaba Eathai in pre-pack deal. Retrieved from https://www.thecaterer.com/news/seaco-investments-limited-acquires-busaba-eathai-in-pre-pack-deal
[4] The Telegraph. (2025, June 15). Busaba Eathai files for administration. Retrieved from https://www.telegraph.co.uk/business/2025/06/15/busaba-eathai-files-administration/
[5] The Times. (2023, September 1). Busaba Eathai avoids compulsory strike off. Retrieved from https://www.thetimes.co.uk/article/busaba-eathai-avoids-compulsory-strike-off-t5n269mhk
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