25th Jan 2017 07:59
LONDON (Alliance News) - The Restaurant Group PLC on Wednesday said trading results in 2016 are expected to be in line with its previous guidance, with an increase in total revenue.
The restaurant operator, which runs chains including Chiquito and Frankie & Benny's, said total revenue increased by 3.7% year-on-year to GBP710.7 million, although like-for-like sales fell by 3.9% when taking into account the 37 sites closed and 24 sites opened during the year.
Restaurant Group said recent trading continues to be challenging and expects things in the first half of 2017 to remain "difficult", but anticipates momentum improving towards the end of the year as its initiatives start to take effect.
As part of its initiatives, Restaurant Group is making "substantial" price and proposition changes in order to ensure it is competitive on value with a "distinctive" offering, while improving its operating processes and "building a better business which is leaner, faster and more focused".
The company added that it will face external cost pressures from increases in the National Living Wage, the National Minimum Wage, the Apprenticeship Levy, the revaluation of business rates, higher energy taxes and increased purchasing costs due to the devalued pound since the UK's vote to leave the European Union and commodity inflation.
Restaurant Group will release its full-year results on March 9.
By Karolina Kaminska; [email protected]; @KarolinaAllNews
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