Côte turnover rises 2.8% to £151.7m as loss-making sites close

Côte Restaurant Group has reported a 2.8% increase in turnover to £151.7m for the period ending 29 September 2024 as the French-inspired chain closed seven loss-making sites a year prior to its acquisition by Karali Group. 

The brasserie brand recorded like-for-like sales growth of 4.1% during the year, which directors attributed to Côte’s new menu and an £8.7m investment in site refurbishments.

While the business reported an adjusted EBITDA loss of £5.5m, this was an improvement on the £6m loss recorded in 2023. Higher exceptional costs of £32.6m during the period likewise led to a pre-tax loss of £46.1m. 

These costs included a £13.2m impairment of historic goodwill and brand assets. The group also made an £18.6m provision against inter-group balances.

The firm spent £1.4m on marketing campaigns across digital and out of home channels, leading to brand awareness reaching three-year highs following the investment.

According to the group’s filing at Companies House, management identified seven sites for disposal during the period to address changing footfall patterns. The move avoided recurring losses of £0.9m. Further sites were permanently shut after the period ended.

As a result, gross profit margins rose to 34.1% from 33.9% in the previous year. This was achieved despite a 9.7% increase in the national living wage.

The group was subsequently sold to Karali Group in a deal that included a £3.4m injection of working capital to support a new cost-reduction plan.

Côte’s future strategy was revealed in its accounts to include brand repositioning to attract a wider demographic. The company also intends to expand its delivery service and business-to-business sales.