Franco Manca owner on a bargain hunt despite revenue hit
Restaurant group Fulham Shore is on a bargain hunt for expansion sites despite a 44 per cent fall in revenues in the six months to September.
The group, which operates more than fifty Franco Manca pizza restaurants and 19 The Real Greek outlets, saw revenues fall from £36m in 2019 to £19.9m as lockdowns took a slice out of in-store dining.
The firm reported an operating loss of £3m, compared to a profit of £2.1m in 2019.
A £10.75m loan facility was secured as part of the Government’s CBILs scheme and an equity placing raised a further £2.25m during the period.
David Page, Chairman of the Group, said it was a “creditable” performance considering the circumstances and noted a positive headline EBITDA in the second quarter as the nation reopened.
He also floated the possibility of a cut-price expansion plan thanks to the damage wrought by Covid-19 on competitors and the High Street property market.
“The ongoing damage to the property and restaurant sectors will allow us to prospect for new sites at much reduced rents and lower capital costs per site,” he said.
“As such, over the next few years and once normal trading conditions return, we will target a higher return on capital than we have historically achieved.”