Described by the Wagamama, Frankie & Benny’s and Chiquito owner as a “pessimistic scenario” for the current financial year (to 31 March 2021), the model assumes all TRG restaurants and pubs will remain closed until the end of June.
It adds that, with the Government suggesting social distancing measures will remain in place post lockdown, it expects a slow recovery in footfall during the rest of this financial year.
“We therefore assume that we would be extremely disciplined in the phased reopening of our restaurants through July to December 2020,” says the group.
“And would expect to reopen around 400 of our 600 restaurants and pubs across that period, potentially with some restrictions on operations immediately following lockdown.”
Under the scenario, TRG assumes an overall decline in total sales of circa 50% in this financial year.
Earlier this week, TRG announced a raft of measures designed to get it through the ongoing Coronavirus crisis, including more flexible banking facilities and executive pay cuts.
The group has increased its revolving credit facility for Wagamama from £20m to £35m, thereby adding an extra £15m to its overall debt facilities.
TRG’s Mexican-focused casual dining chain Chiquito looks set to be one of the first big restaurant groups to collapse amid the coronavirus shutdown, after the group filed a notice of intention to appoint administrators late last month.
Prior to the pandemic, TRG said it was looking to close up to 90 of its circa 650 sites by the end of 2021 following a challenging period for its Chiquito and Frankie & Benny’s brands.