Founders of Spanish-themed Liverpool restaurant brand Lunya, Peter and Elaine Kinsella, to transfer ownership of the business to its employees. Tony McDonough reports

Peter and Elaine Kinsella are to transfer ownership of their two Liverpool restaurants to their 67 employees.

They opened Lunya, a Spanish / Catalan-inspired restaurant and deli in Hanover Street in Liverpool ONE in 2010. In 2018 they opened sister venue Lunyalita in the Royal Albert Dock. A Manchester Lunya opened in 2015 but closed in 2020 during COVID.

In 2021 Elaine Kinsella was diagnosed with myeloma, an incurable blood cancer. She has taken a back seat in the business. Peter plans to continue running Lunya for the next seven years but the couple are now putting a succession plan in place.

He aims to gradually step back from the firm over that time and their plan to secure its future will be to transform it into an Employee Owned Trust (EOT). And EOT is a government-backed ownership model.

Lunya will be valued by independent accountants and the founders’ shares sold to an employee-owned trust. Lunya Ltd will remain as the trading company, but with all the shares held by the trustees of the EOT.

Future profits of the business will be 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.

Peter will take up the role of executive chairman, still working actively in the business and mentoring the management team. He said: “This significant change marks a new chapter in Lunya’s journey.

“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.”

Lunya has become a popular destination for lovers of Spanish and Catalan food. It has collected multiple awards and built a loyal customer base. It has twice been winner of the Good Food Guide Northwest Restaurant of the Year.

“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,” added Peter.

“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.”

Tom Cavanagh, director of operations who has been managing Lunya on a day-to-day basis for nearly two years, also 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.

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Elaine paid tribute to the “incredible people” who make up the Lunya people. She explained: “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 handled by Liverpool law firm Brabners with the financial arrangements delivered by Mitchell Charlesworth Accountants.