Burger & Lobster returns to profit after £10m loss
The chain closed four UK restaurants to focus on London and international expansion during the full year to 31 December 2017, reports BigHospitality's sister site MCA.
Net profit came in at £2.4 million, compared to a loss of £10 million in 2016 following.
The business said a series of changes, including adjustments to the menu new range of starters and improved drinks offering, had increased spend per head by 2%.
Turnover decreased by 4% to £42.2 million.
B&L reduced costs through closures and disposals, leaving it with nine sites over all, as well as changing supplier relationships to reduce wastage.
Underlying earnings rose to £6.2 million versus £2.7 million in the prior period.
Founder Misha Zelman, who also diretcrs Goodman Restaurants and Zelman Meats, says: “Burger & Lobster is an example of how a restaurant brand can remain resilient in challenging times for the high street.
“We’ve turned this business around because of the people within it. We can now look forward positively, continually evolve what we have in London and begin to grow the business in some of the most exciting places in the world, including China, the United States and Hong Kong, in a format that we know works well for us and, more importantly, our customer.”
B&L said it is now using London as a “test kitchen” for concepts which it can roll out internationally, and plans to have two more sites in the US by 2020 as well as expanding further in Singapore, Hong Kong, Canada and China.
As part of its focus on London, B&L plans to open new concept called Shack, which will serve a simplified menu of burgers and lobster rolls, with prices starting under £10.
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