The Restaurant Group shows resilience as turnover rises

By Luke Nicholls

- Last updated on GMT

Related tags: Restaurant group, Restaurant, Profit, The restaurant group

The Frankie & Benny's operator has reported a rise in turnover and sales over the past 12 months
The Frankie & Benny's operator has reported a rise in turnover and sales over the past 12 months
The Restaurant Group, which has the likes of Frankie & Benny’s, Chiquito and Garfunkel’s within its 390-strong portfolio, has reported a rise in turnover and sales over the past 12 months in spite of some of the most challenging trading conditions ever faced.

Revenues for the 52 weeks to 1 January 2012 are up 7.25 per cent, while like-for-like sales are 3.25 per cent ahead. New restaurant openings for the group were also ahead of the previous year, with 25 sites opened in 2011.

Resilient performance

Andrew Page, chief executive of The Restaurant Group, said: “We faced challenging trading conditions in 2011 but, despite this, our profits for 2011 were well ahead of those for the previous year and cash flow was also very strong.

“Last year we opened 25 new restaurants, creating more than 500 new jobs. These new openings are trading ahead of our expectations and this year we expect to open 25 to 30 new restaurants throughout the UK which should create around 600 new jobs.”

The Group went on to report that trading at the new restaurants has been above expectations. A recent trading update also revealed that 30 sites are expected for 2012.

2012 Outlook

Analysing the figures, independent financial advisory group Collins Stewart said: “The Restaurant Group's distinctive estate bias towards airports (c.20 per cent of its estate) and leisure & retail parks (c.70 per cent of estate), generates a high level of repeat business. This has provided a resilient performance during the recession.

“The Group has also avoided the deep discounting that has plagued the industry.”

“The 2012 outlook is challenging not just from a consumer backdrop perspective but the Olympics and the Euro Football Championships will provide challenges.”

But The Restaurant Group insist its efforts will be focused on delivering further profitable progress this year, with Page adding: “While we expect trading conditions to remain tough in 2012, The Restaurant Group's team will be working to deliver another year of profitable progress.”

Related topics: Restaurants, Trends & Reports, Business

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