Loungers reports 'stellar year' as £100m turnover looms
The group, which is backed by Lion Capital, reported a 7.4% growth in like-for-like sales in the 24 weeks to 8 October, against a backdrop of tough trading conditions across the UK.
Revenues at the company grew from £68.5m to £91.8m for the 52 week- period ending 23 April, representing a 34% uplift in net sales, says the company.
Over this period, the company opened 11 venues - 10 Lounges and one under its Cosy Club sister brand, including launches in Lewes, Bedford and Wokingham. In total it opened 20 sites - 16 Lounges and four Cosy Clubs - in the year ended 23 April 2017.
Expansion will continue for the remainder of the year, with sites due to open in Beeston, Bury and Sudbury in the run-up to Christmas, alongside a Cosy Club in Leeds. Openings due for early 2018 include Lounges in Melton Mowbray and Stockport and a Cosy Club in Lincoln.
The results come as the casual dining sector feels the pressure of increased staffing and ingredient costs and lower consumer spend. Last month, research published by accountancy firm Moore Stephens found that up to a fifth of UK restaurants are at risk of going bust in the coming years.
‘Despite the wide reporting of a challenging and inflationary environment for casual dining restaurants, Loungers has continued to thrive with the board, ever cognoscente of the operating environment, actively ensuring that the product offering delivers value for money,’ the company said in a statement announcing its results.
Loungers was launched in Southville, Bristol, in 2002 by Alex Reilley, David Reid and Jake Bishop and now operates more than 100 sites across the UK.
