The Restaurant Group to shut 23 sites by end of May
Wagamama and Pubs’ like-for-like sales were up 4% and 6% respectively, while sales for its leisure division were down 4%
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The Restaurant Group, which operates approximately 410 restaurants and pub restaurants throughout the UK including Wagamama, Brunning & Price and Frankie & Benny’s, is set to reinstate the closing of 23 of its sites at the end of May 2023.
The group said it had successfully negotiated a number of early exits, with the closures forming part of the group’s cost-cutting plan.
During Q1 the group was able to deliver £5m of incremental annualised cost savings on an annualised basis. It expects to benefit from approximately 70% of the £5m of annualised cost savings in FY23, with the full benefit flowing through from FY24 onwards.
Despite the planned closures, the group reported a strong trading update for Q1 2023. Wagamama and Pubs’ like-for-like sales were up 4% and 6% respectively. Concessions LFL sales were up 31%, a major increase to be attributed to the different economic situation compared to the same period last year when the sector was impacted by the Omicron variant.
However, despite the encouraging trading update, there was a LFL sales decrease of 4% across its leisure division.
In its latest update, the group said it is planning the expansion of Wagamama restaurants and anticipates seven to eight new openings in FY24.
The group said: “This combination of encouraging current trading and incremental cost savings provides confidence that TRG is tracking ahead of management expectations on its medium-term margin accretion and deleveraging plans.”
