ao link

You are viewing 1 of your 2 articles

To continue reading register for free, or if you’re already a member login

 

Register  Login

Operator of Cafe Rouge looks to cut costs

Casual Dining Group, operator of the Café Rouge brand, has appointed a restructuring adviser as it seeks to cuts costs.

 

The company is looking to negotiate with landlords to cut rents and rates. Steve Richards, chief executive of CDG told The Sunday Times that the company is taking steps "to ensure that the core business is in good shape for future growth".

 

In July CDG secured a cash injection of £30m and refinancing with American private equity company KKR which was said would provide "a long-term capital structure for the group, strengthens the balance sheet and positions CDG for growth".

 

CDG's most recent financial resulted highlighted the difficulty faced by casual dining companies. In the 52 weeks to 28 May 2017 the group revealed an overall pre-tax loss of £60m, while total revenue was up 10% year-on-year to £329m, with like-for-like sales increasing by 2.2%. Increased costs, including the national living wage, apprenticeship levy, pension contributions, food inflation and business rates, alongside the devaluation of the pound were all said to have taken their toll.

 

CDG operates nearly 300 mid-market restaurant brands including Las Iguanas and Bella Italia as well as Café Rouge.

 

Top 100: Steve Richards, Casual Dining Group >>

 

Casual Dining Group to receive £30m cash injection >>

 

Three Tragus companies enter CVAs >>

 

Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!).

Hotel Cateys

Hotel Cateys

Best Places to Work in Hospitality 2025

Best Places to Work in Hospitality 2025

Queen's Awards for Enterprise

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

Jacobs Media

Jacobs Media is a company registered in England and Wales, company number 08713328. 3rd Floor, 52 Grosvenor Gardens, London SW1W 0AU.
© 2024 Jacobs Media