Tasty's outlook 'remains cautious' after restructuring plan

Casual dining group Tasty has said sales have taken a hit following its restructuring plan last year.

 

The Dim T and Wildwood operator closed 18 restaurants last year in a bid to cut costs. It currently operates 32 Wildwood and four Dim T sites.

 

In a trading update, the group said that although the restructuring plan “will enable the return to profitability and should secure the company’s long-term future, the resultant closures of part of the group’s estate has had a negative impact on sales and has precipitated some significant operational adjustments”.

 

Total sales in 2024 are expected to hit £36.6m, down from £46.9m in 2023, while EBITDA is set to drop from £4.4m to £3.8m.

 

Tasty said the casual dining sector continued to face “significant headwinds” and it had introduced “many cost-saving measures” to counter measures announced in the autumn budget, including the rise in employers’ National Insurance contributions in April.

 

Plans include launching a new electronic point of sale system and a loyalty platform to better target its database of 1.5m customers.

 

Earlier this month Tasty secured a £2.5m pandemic-era insurance payout related to breach of contract for losses arising in 2020.

 

With this payout and its debt-free position, the group said it was “confident of being able to overcome the current challenges but remains cautious in the current climate”.