Register to get 5 free articles
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Prezzo has revealed that revenues rose to £135m from £95m in the year ended 1 January 2023, following an increase in menu prices and a focus on efficiency.
As a result, the Italian casual dining group’s profit margin also saw an uptick from 31.2% to 35%.
However, macroeconomic challenges during the period resulted in an adjusted EBITDA loss of £4.8m compared to a profit of £4.6m in 2021.
Overall, Prezzo’s losses after tax for the period widened to £30.1m from £22.4m in the previous year, which was largely attributed to the cost of doing business.
That said, the group reported a return to profitability following a strategic review of the business in April 2023, which saw it close almost a third of its restaurants.
During the restructuring, Prezzo said soaring inflation had made it impossible to keep all its restaurants operating profitably and warned creditors that it would “likely enter into administration” should the closures not be implemented.
The casual dining group ended up closing 46 “loss-making” restaurants across the country following this review.
Prezzo, which was founded in 2000 by restaurateur Jonathan Kaye, once operated an estate of approximately 300 locations, but now has only 97.
