Tasty considering rebrand opportunities alongside closures

In the group's annual results to 25 December 2022, Tasty reported a rise in revenue of 26% to £44m with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of £2.6m (down from £8m the previous year). 

However, overall the group posted a loss after tax for the period of £6.4m, compared to a profit of £1.2m the year before. 

Tasty's chairman Keith Lassman said the group is currently considering opportunities to rebrand some Wildwood sites within its estate under the Dim T banner. It comes after the group converted Wildwood Loughton into a Dim T last November, with the switch up 'exceeding expectations'.

“Dim T has proved to be a robust brand over the last few years due to both a rise in popularity for Asian food and also an increased demand for takeaway and delivery of this cuisine,” Lassman said.

“Given the initial solid performance of this converted unit we are considering other opportunities to rebrand within our estate.”

Tasty is currently trading from 52 of its 54 sites, with Lassman confirming that the group has started a process to sell the two restaurants that remain closed.

“We will also consider the sale or surrender of other underperforming sites,” he added. 

Plans to expand with new sites will be reviewed once inflation and the economy have stabilised.

Lassman said the business had delivered strong sales growth in 2022. However, the impact of rail strikes, the World Cup and bad weather over the course of the year are estimated to have cost the business in excess of £650,000, which is reflected in the group's overall loss for the period. 

Tasty also repaid and cancelled its unutilised Barclays Bank facility of £1.1m during the year and is now debt free. At the end of the period it had cash at bank of £7m, compared to £11m the previous year. 

The group said inflationary pressures on labour, food and utilities had impacted it 'considerably', but are now beginning to stabilise. Despite this, the board expects the group’s profitability to continue to be impacted by both energy costs, which remain significantly higher than pre-pandemic levels, and also increasing food costs.