The owner of the Franco Manca and Real Greek restaurant chains has said the average cost to fit out a restaurant has risen by around 12% compared to a year ago.
Fulham Shore said it had seen significant inflation in the price of building materials due to a combination of commodity prices and supply issues.
The group runs 66 Franco Manca sites and 23 Real Greek restaurants in the UK. It opened 10 new sites during the year to 27 March and has a further 16 in the pipeline.
Four new Franco Manca restaurants are being fitted out in Chichester, Hove, Lincoln and Windsor, and two new Real Greek sites are under construction in Solihull and Gloucester Quays.
Fulham Shore returned to profit during the year, posting a pre-tax profit of £3.9m after the pandemic saw it take a £7.5m loss in 2021.
Revenue increased 105% to £82.7m and it reported earnings before interest, tax, depreciation and amortisation of £20.3m, compared to £0.9m in 2021.
David Page, executive chairman at Fulham Shore, said: “While the first quarter of the year has been characterised by increasing pressures on the UK consumer, our restaurants remain crowded with customers seeking a great experience, quality food, and importantly outstanding value.
“We will always aim to keep our prices low, driving high customer numbers per site and making for fun, atmospheric restaurants, as well as motivated employees. These key ingredients underpin the board's confidence in our continued growth."
During the year Franco Manca entered its first franchise agreement in Greece and launched two sites.
Fulham Shore said both the pizza chain and the Real Greek had introduced a service charge on dine-in bills after lockdowns lifted, with proceeds distributed through a tronc scheme.