Wagamama owner to shut 35 sites as FY losses widen

The Restaurant Group has revealed that for the year ended 1 January 2023, its statutory loss before tax increased from £35.2m in 2021 to £86.8m. 

As a result, the Wagamama owner has made plans to shut around 35 “loss making” locations. This decision will take its portfolio from 166 restaurants down to between 75-85 venues by 2024, due in part to a “tough macroeconomic” environment that has deterred customers from eating out. 

At the moment, TRG’s net debt stands at £185.7m, having increased from £171.6m in the prior year.

Nevertheless, the group hit £883m in sales, outperforming last year’s total sales result of £636.6m due to Wagamama and the group’s pubs and concession sales outperforming their market benchmarks for the financial year. 

Meanwhile, the group’s profit before tax reached £20.3m compared with £16.6m in 2021, while EBITDA profit grew to £83m on a pre IFRS 16 basis compared to £81.2m in the same period last year. 

Andy Hornby, chief executive of TRG, said: “We’ve delivered a strong operating performance for the year in a market which has continued to pose a number of headwinds for casual dining operators.

“Current trading has been very encouraging to the great credit of our teams who continue to ensure our customers receive the best experience possible. We have a clear plan to increase EBITDA margins over the next three years and deliver significant value for all our stakeholders.”