Wasabi appoints KPMG as it looks to negotiate turnover-based rents

Wasabi has appointed KPMG to lead discussions with landlords as it bids to move to a turnover-based rent arrangement.

The grab-and-go chain, which has 51 outlets, 42 of which are in London, is analysing its strategic options as it looks to cut fixed costs to help weather the storm of coronavirus.

Chief executive Henry Birts said: "This is a very challenging time for our industry and the future for all of us is highly uncertain.

"Pre-Covid we had a thriving brand and business, known for its high-quality, fresh, fast and excellent value offer. There is now a big question mark over how and when demand will recover, and as it does we then have the challenge of managing capacity and speed of service in our kitchens and front of house alongside restrictions around social distancing.

"We are working extremely hard to flex our operating model in the light of this uncertainty but this is not going to work unless our fixed costs, primarily our rents, also reflect this economic reality. It is nevertheless our belief that with the support of all of our stakeholders, including our landlords, we can adapt to once again be a healthy and sustainable business, preserving jobs, playing our part in the broader economic recovery and continuing to serve our customers both safely and efficiently."

Wasabi is not the only hospitality business hoping to move to a turnover-based rent arrangement, with the model seen as an effective way for payments to track the reduction in revenue social distancing will cause.