Restaurants

Fridays owner ups guidance following positive December trading

Trading for the month of December 2021 was ahead of early-month expectations despite the fact that monthly revenue was 8.3% lower than the same period in 2019

Hostmore, the owner of casual dining brand Fridays, and the cocktail-led bar and restaurant brand 63rd+1st, has said it expects full-year revenue to be ahead of expectations following stronger than expected trading in December. 

Trading for the month of December 2021 was ahead of early-month expectations despite the fact that monthly revenue was 8.3% lower than the same period in 2019.

The group said that whilst an increased level of guest reservation cancellations became evident as December progressed in light of Omicron, this was “more than offset” by a combination of new reservations and walk-in demand. 

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Given the strength of its December performance, the group’s board now expects EBITDA for the year ending 2 January 2022 to be “well ahead” of the market consensus of £18.6m.

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It added that discussions with its remaining landlords regarding Covid-19 concessions are ongoing, and it is “optimistic” that agreements will be reached in the coming weeks.

Robert B. Cook, Hostmore’s CEO, said: “We are pleased the business has continued to perform strongly through another year of challenge and uncertainty.  

“The past two years have been challenging but I believe the group, including both my colleagues in-store and at the support centre, have used the time productively to make meaningful and lasting changes for the future. The improvement in our guest satisfaction scores also bears testament to the ongoing support of the many loyal customers who appreciate our efforts.”

He added: “Despite the ongoing uncertainty regarding Covid and how it may affect our lives, as well as the well documented inflationary environment, I am positive about the future of the business. The replenishment of our balance sheet and the goodwill of our landlord community has enabled the contracting of the latest addition to our estate, being our first QSR store in Dundee, scheduled to open in March 2022. 

“Two further 63rd+1st sites, in Cambridge and Edinburgh, and two Fridays’ stores, in Chelmsford and Barnsley, are now scheduled to open in the current calendar year, with more in the pipeline. This enables us to continue with our planned expansion of the group, which will benefit all of our stakeholders.”

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