4th Jan 2022 12:10
(Alliance News) - Restaurant group Tasty PLC on Tuesday provided an early reading for London investors of Omicron's impact on the UK hospitality sector, saying the virus variant "significantly reduced" the number of diners in the key month of December.
Tasty operates the dim t and Wildwood casual dining chains. December, usually its strongest month, suffered "disappointing" trading as infection rates rose and the UK government reinstated working from home advice.
There were "significantly reduced" numbers of those eating out as a result, while Christmas bookings also were hit.
"As a consequence, trading for the peak December trading period was considerably weaker than anticipated," Tasty said.
Tasty shares were up 0.4% at 5.15 pence near midday on Tuesday in London, buoyed by general investor optimism over a weak impact from Omicron in the months ahead. The stock had started down more than 1%.
Up until December, trading had been "extremely encouraging", Tasty said.
"The company confirms that its restaurants have so far remained open with only isolated Covid-19 related disruptions to date and is currently trading from 50 restaurants out of a total estate of 54. The four restaurants that have remained closed due to predicted poor trading conditions in their locality and labour shortages, should re-open later in the year however the company will continue to consider the sale of two or three of those restaurants," Tasty said.
It added: "2022 will not be without its challenges as the company prepares for the end of government support, in terms of reduced VAT and business rates. However, it is confident in its brands and optimistic about the trading potential of the group, especially with the strong revenue stream provided by takeaway and delivery services."
UK consumer bellwether Next PLC, a home and fashion retailer, provides its Christmas trading statement on Thursday, alongside bakery chain Greggs PLC and online furniture seller Made.com Group PLC. JD Sports Fashion PLC provides the same on Wednesday next week.
By Tom Waite; [email protected]
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