The Restaurant Group delivers “robust financial performance in a challenging market”

The eating out giant reported sales of £423.4m in the 26-week period to 3 July, versus £216.8m in 2021 and £11.2m - two periods in which trading was severely hampered by the pandemic. 

The group says that its Wagamama, pubs and concessions divisions delivered continued like-for-like sales and outperformed the Coffer Peach tracker. 

Wagamama was the group's star performer, with like-for-like sales up 9% on 2019. 

Barburrito - the fast casual burrito brand acquired by the ​​The Restaurant Group for £7m early this year​​ - continues to ‘trade ahead of the market’.

The group says it is maintaining a disciplined approach to targeted expansion opportunities, both organic and inorganic, and that it had a strong pipeline of new UK Wagamama restaurants with improved commercial lease terms. 

It pointed to further improvements in its customer offer with ‘continuous menu innovation and unique colleague culture’ leading to customer ratings that ‘remain very positive’. 

But the group also acknowledged it was  facing “ongoing significant cost pressures". The jump in utilities costs has been ‘partially mitigated’ by hedging, with prices now fixed until 2024. 

“We have made good progress in the past six months, delivering a robust financial performance in a challenging market, with continued LFL sales outperformance,” says chief executive officer Andy Hornby. 

“We have taken decisive management actions to reduce the impact of the industry cost pressures including reducing our interest rate exposure through interest rate caps.”

“Whilst the uncertain consumer environment presents challenges for the hospitality sector, the Group is well positioned to further develop our brands to deliver long-term growth for all stakeholders underpinned by our strong balance sheet.”