Comptoir Group posts strong recovery
The 26-strong Lebanese restaurant group further reported gross profit up 44.3% to £24.4m, compared to 2021’s £16.9m.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was £6.3m, with a net cash position of £7.1m.
It further reported sales recovered through 2022 despite the cost of living crisis and inflationary pressures, with the last six months of the financial year seeing encouraging like-for-like growth compared to 2019.
During the financial year, the business opened two new franchise restaurants in Stansted and Doha airports with partner HMS Host. Franchising will continue to be an integral part of its expansion strategy in the coming year with both new airport sites performing ahead of expectations, according to the group, and further opportunities being reviewed both in the UK and internationally.
Comptoir believes its fast casual offering, Shawa, has strong potential to expand further in the QSR and fast casual marketplace, while its destination restaurant brands have strong opportunity for organic growth.
To mitigate inflationary challenges, the group fixed its utilities contract until September 2023 and brought supply chain management in-house for the first time as part of a strategy for control and consolidation.
It carried out menu re-engineering exercises across the group, allowing it to protect margins with “only modest price increases” and offset some inflationary pressures.
“Whilst we would expect costs to remain higher than they were prior to the war in Ukraine we continue to mitigate these effects through our new supplier partnerships and menu engineering,” the group said.
“Energy prices have already started to retreat, and our flexible hedge allows us to take that benefit as it occurs.”
The business continues to make ongoing updates to its restaurants alongside progress in becoming a carbon neutral operator, with a move to 100% recyclable packaging in Comptoir Libanais in 2022 and signing its first contract for green electricity.
It made appointments to its senior leadership team to accelerate growth, including chair, CEO, and non-executive director, as well as strengthening its management structure with key appointments in marketing, procurement, and development.
It further reported it is back to 'optimum employment levels' and has strong staff retention with improved pay rates and enhanced benefits for staff.
Dr Beatrice Lafon, non-executive chair, commented: “In my first year as Chair, I am delighted to be reporting that Comptoir has performed well against the well documented headwinds affecting the industry.
“This was a pivotal year for the Group as it recovered from the challenges presented by the pandemic and was required to address unprecedented inflationary pressures on food and energy prices. Sales increased by almost 50% and underlying profit was maintained as we returned to a normalised trading position compared to the previous two years. Our ‘Back-to-Basics’ programme was launched in September, improving staff retention by 10% and doubling our guest satisfaction scores. We also delivered a new menu attracting value-conscious customers. We opened two new franchise restaurants in Stansted and Qatar airports over the course of the year.
“We were delighted to appoint Nick Ayerst as CEO in October. Nick brings a wealth of experience from his previous roles at LEON and The Restaurant Group. The Board and executive management are focused on reinvesting in the business and its people, building strong foundations for growth.
“I would like to thank our teams for their commitment as we evolve the way we serve our guests, as well as our suppliers, partners, and shareholders for their ongoing support. Together, we will continue to drive the success of Comptoir Group, building an even brighter future for our business and our people.”
