Wagamama's sales boosted by Eat Out to Help Out

By BigHospitality

- Last updated on GMT

Wagamama's sales boosted by Eat Out to Help Out

Related tags: Wagamama, Eat Out To Help Out, Restaurant, Casual dining

Wagamama has reported strong trading results for both its eat in and delivery businesses in the third quarter of the year.

The noodle chain saw a rise in sales as well as EBITDA, although revenue decreased by almost 21% in the same period, it says.

Like-for-like sales at the chain, which is operated by The Restaurant Group, rose by 7.4% for the quarter thanks to the Government’s Eat Out to Help Out scheme. Cost management and a number of rent deals also helped the business and led to adjusted EBITDA increasing to £18.1m.

However, the results also show the impact of the Coronavirus pandemic on the hospitality sector, with revenue for the year ending 27 September 2020 dropping by over a third (37.4%) to £158.9m, and adjusted EBITDA decreased to £20.6m.

“We are encouraged by the strong performance of the business in Q3, both for eat in and delivery,” says CEO Emma Woods.

“This was the last point we were able to trade in any sense normally and provides real confidence that the business can return to market leading performance when restrictions are again lifted.”

In October, Wagamama owner The Restaurant Group said it has experienced very encouraging trading since reopening its estate post lockdown, helped by the performance of the noodle chain.       

 

Related topics: Business & Legislation, Casual Dining

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