Sarah Willingham: Hospitality has 'gone through the worst' of economic troubles

Nightcap boss Sarah Willingham has said she believes hospitality has “gone through the worst” of the current economic downturn and is facing a more positive future.

Willingham, a former investor on BBC’s Dragon’s Den, said there were “many economic indicators showing a likely recovery later this year”.

Nightcap operates 46 sites in London and across the UK under the Dirty Martini, Cocktail Club and Piano Works brands, the latter of which it acquired for £200,000 in February.

Writing in its interim results, Willingham said the group believed there was potential to grow its brands to more than 100 bars in the medium-term.

Nightcap saw revenue grow 42% to £33.4m in the last six months of 2023, driven by the acquisition of Dirty Martini out of administration for over £4m.

Adjusted EBITDA increased 5% to £2.1m despite the ongoing impact of transport strikes and higher than expected costs integrating Dirty Martini into the business.

However, like-for-like sales dropped 10%, partly driven by strikes and the cost of living crisis hitting customers’ wallets.

Willingham said: “We set out to build a great business at the back end of Covid and the economy has moved through several additional challenges from the energy crisis and rail strikes to interest rates, inflation and cost of living crisis – throwing just about everything at us.

“I believe this environment is where some of the best businesses are built.

“With a rapidly changing landscape away from nightclubs and sticky dancefloors to late night party bars which are safer, more flexible and more inclusive environments. I believe that no other bar group is as well positioned to take advantage than Nightcap with the brands and estate that we have acquired and built over the last three years.”