Fulham Shore to ‘proceed cautiously’ over next 12 months

The company that owns the Real Greek and Franco Manca restaurant businesses will “proceed cautiously” in the face of cost pressures over the next year.

Fulham Shore executive chairman David Page said the business would focus on conserving cash and taking advantage of decreasing rents.

“Trading during the first two months of the second half of the financial year was well ahead of the comparable periods in 2019 and 2021, at 46% and 12% respectively,” he said in the company’s financial results for the six months to 25 September 2022.

“Notwithstanding this momentum, the board remains mindful that we continue to operate against an unstable political and economic backdrop, which in turn has impacted consumer confidence and driven up our costs as well as facing significant challenges from the ongoing transportation disruption.”

During the period, Fulham Shore reported a revenue increase of 26% to £49.9m, and earnings before interest, tax, depreciation and amortisation (EBITDA) of £10.5m, marginally behind the £10.6m seen last year. The business saw profit after tax of £300,000, compared to £2.4m in 2021.

The group opened 11 new restaurants in the UK during that time and has since agreed the terms of a new franchise agreement for Franco Manca in Spain, which will see the opening of two restaurants in the country early next year, describing it as “a potential major market”

Two further Franco Manca and Real Greek openings, respectively, following the period end, took the Franco Manca brand to 71 pizzerias and the Real Greek to 26 restaurants.