Wagamama acquisition strengthens 2019 performance for hospitality group

Hospitality specialist The Restaurant Group has seen a 8.5 per cent rise in like-for-like revenue in the 52 weeks ending December 29.

The firm, which acquired pan-Asian chain Wagamama at the end of 2018, has seen an overall rise in sales across the group,

Owner of brands such as Frankie & Benny’s, Chiquito and Brunning & Price, The Restaurant Group saw its concessions business grow 4.1 per cent, with its pubs division seeing an increase of 4 per cent.

The group has taken the decision to suspend dividends in order to focus on accelerating the growth of its main businesses, as well as bolstering its leisure business - which saw a sales decline of 2.8 per cent.

Andy Hornby, The Restaurant Group chief executive officer, commented: “Having joined the business in August last year I am particularly pleased with the continued and significant progress made following the acquisition of Wagamama and the integration of the business into the group, which has transformed the Group’s growth trajectory and momentum.

“Our three growth businesses of Wagamama, concessions and pubs are all out-performing their respective markets and have clear potential for further growth. I am also acutely aware of the challenges facing our leisure business and the wider casual dining sector.

He added: “We have made an encouraging start to the new financial year with like-for-like sales up 5.3 per cent for the first six weeks of 2020. In order to support [our] strategic priorities, the board has taken the decision to temporarily suspend the dividend.

“This will allow us to continue investing in our three high growth businesses, whilst facilitating an acceleration of our leisure estate rationalisation and reducing our net debt.”