Tasty wins £2.5m restaurant insurance payout

Casual dining group Tasty has secured a pandemic-era insurance claim after agreeing a final settlement of £2.5m.

The Dim T and Wildwood operator said the claim was related to breach of contract for insurance for losses arising in 2020.

 

In an update to the stock exchange Tasty said it would receive around £1.5m, net of creditor and legal costs, which is payable to the company within 21 days.

 

Hospitality businesses have launched multiple legal challenges since the pandemic, when many insurers refused to pay out when the government ordered restaurants, hotels and pubs to shut their doors under coronavirus restrictions.

 

In 2023, the High Court ruled in favour of a group of businesses, including Pizza Express and the operator of Michelin-starred restaurant SY23, over the issue.

 

Tasty’s update comes after the company closed 18 restaurants earlier this year in a restructuring plan. It currently operates 32 Wildwood and four Dim T sites.

 

The company said trading in the second half of 2024 was “challenging” and the key December period had been “disappointing”.

 

Tasty said in an update: “The casual dining market continues to contend with several adverse factors, including a decline in consumer confidence and a discernible decline in discretionary spend, inflationary pressures on food, increases in the National Minimum Wage and following the UK Government’s budget in October 2024, an increase in employers National Insurance contributions from April 2025.

 

“In these uncertain times, the board is maintaining a cautious outlook.”  

 

A further trading update will be made in mid-January 2025 for the year ended 31 December 2024.