The Restaurant Group reports encouraging trading since lockdown

The Restaurant Group has reported encouraging trading since its estate reopened, despite reporting a £62.6m loss before tax for the fist six months of 2020.

Having closed 128 underperforming sites since lockdown and placing Chiquito and Food and Fuel into administration, the group said that it had “confidence for the future, even if we must adapt to further challenges”.

Wagamama was the best performing part of the business, reporting like-for-like sales growth of 11% on an adjusted basis.

Sales in the 26-week period to 28 June were £227.2m, compared to £519.9m in 2019.

The first eight weeks of trading to the 23 February delivered like-for-like sales growth of 4.5%, but following the slowing of business and the subsequent lockdown, the group had to take drastic measures including renegotiating rents and loan facilities through a Company Voluntary Agreement, closing 128 sites and agreeing management pay cuts.

Chief executive officer Andy Hornby said: “It has been an extraordinary and difficult period for the hospitality sector but one in which we have pulled together to achieve a great deal. The priority throughout has been the safety of our colleagues and customers, and we have also accelerated the reshaping of our portfolio, resulting in a higher quality, diversified estate.

“Since reopening, I am genuinely pleased with the strength of our trading performance and would like to sincerely thank each and every one of our colleagues for their extraordinary efforts.

“Whilst the sector outlook is uncertain, and we are mindful of recent restrictions across the UK, we are confident that the actions we have taken provide us with strong foundations to emerge as one of the long-term winners.”

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