Wagamama owner The Restaurant Group swings to loss

The Restaurant Group, which operates around 350 pubs and restaurants on high streets, shopping centres and retail parks across the UK, suffered an adjusted pre-tax loss of £63m in the 26 weeks to June 28, compared with a £28m profit the prior year.

On a statutory basis, pre-tax losses widened from £79m to £208m during the period.

Revenues slumped 56% to £227m during the six-month period as restaurant closures enforced by the government during lockdown battered its top line.

The Restaurant Group said the outlook for the food and beverage sector “remains extremely challenging”, but it insisted that it is “well positioned” to recover from the crisis.

The group said sales had been “very encouraging” since lockdown measures were eased in July. In the 11 weeks to September 20, like-for-like sales at Wagamama jumped 11% year on year.

Its leisure division, which included Frankie & Benny’s, reported like-for-like growth of 4% during the same period, while its pubs registered a 14% increase in like-for-like sales.

The Restaurant Group launched a CVA earlier this year, resulting in the closure of 128 sites, which were primarily Frankie & Benny’s locations.

It also placed its Chiquito chain into administration, allowing it to close 45 underperforming restaurants.

The group is also in the process of exiting around 40 concession sites in travel hubs such as airports that have been deemed “economically unattractive based on expected future passenger trends”.

The Restaurant Group boss Andy Hornby, a former Asda and Boots executive, said: “It has been an extraordinary and difficult period for the hospitality sector but one in which we have pulled together to achieve a great deal.

“Since reopening, I am genuinely pleased with the strength of our trading performance and would like to sincerely thank each and every one of our colleagues for their extraordinary efforts.

“Whilst the sector outlook is uncertain, and we are mindful of recent restrictions across the UK, we are confident that the actions we have taken provide us with strong foundations to emerge as one of the long-term winners.”