Sales fall put down to ‘weaker market’
Frankie & Benny’s owner, The Restaurant Group, has reported a fall in sales as a weaker UK dining market took its toll on the business.
The company – which also owns brands including Frankie & Benny’s, Joe’s Kitchen and Chiquito – reported a three per cent drop in like-for-like sales in the 52 weeks to December 31, while total sales fell by 1.8 per cent.
The Restaurant Group also owns the Brunning & Price pub chain, including The Armoury in Shrewsbury, The Fox at Chetwynd Aston, and the Woodbridge at Coalport.
Chief executive Andy McCue said: “In 2017 we made solid progress against our strategic initiatives, resulting in improved volume momentum in our leisure business, a lower cost base and a more focused growth plan.
“While the market has softened, we continue to benefit from strong cash generation and a healthy balance sheet.”
But The Restaurant Group held steady on 2017 pre-tax profit guidance despite weaker revenues, saying the figure would be in line with current market expectations.
The company also stood ground on its 2018 sales forecasts, as it pushes forward with an efficiency drive that the company said has resulted in a fundamentally leaner business.
“Our expectations around our 2018 sales trajectory remain broadly unchanged and reflect both our improving volume momentum and the significant price investments made in the middle of last year, albeit set against the backdrop of a market that has softened,” it said as part of a trading update. The overhaul has prompted a revamp of its pricing, food quality and marketing over 2017, and pushed the business to focus on expanding its pubs and concessions business, adding that the pipeline of new site opportunities continues to grow.
The Restaurant Group – which operates 497 casual dining sites across the UK, as well as a raft of concession sites that tend to run in UK airports – said it would provide a more detailed update on its progress as part of its preliminary results in March.
Last year the firm said it was to close eight more sites around the country after racking up a £40 million loss last year.
But the well-known Shropshire eateries were among those which were safe from the restructuring as Mr McCue said the company wanted to continue growing its pubs arm. The firm said it would optimise its menus and invest in marketing to further add to demand for its pubs, which have ‘a loyal and increasing customer base who rate the offering highly’.
The group experienced a ‘challenging’ year during 2016, and while total revenue grew by 3.7 per cent to £710.7m, thanks to the expansion of the chain, sales fell by 3.9 per cent for pubs that have been open for more than a year.
