Itsu: Return to the office helps boost sales
The move by companies to encourage their workforce to return to the office helped sales jump at East Asian-inspired eatery chain Itsu during its latest financial year.
The London-headquartered company has posted a turnover of £160.7m for 2023, up from the £137.7m it achieved in 2022.
Newly-filed accounts with Companies House also show the brand’s pre-tax loss slipped from £2m to £4.3m over the same period as it worked on its expansion plans.
Itsu’s retail revenue rose from £100.6m to £115.4m while its franchise sales also grew from £540,000 to £635,000.
The company’s grocery turnover jumped from £36.5m to £44.6m in the year.
‘Very encouraging’ year for Itsu
A statement signed off by the board said: “The group had a very encouraging 2023 with revenue growth in both the retail and grocery businesses.
“Itsu retail saw a shift in trading in 2023; transport hubs showed higher customer growth while the city resumed pre-Covid sales levels, moving from a three-day to a four-day week.
“The suburbs and regions showed lower levels of growth reflecting very strong 2022 comparatives driven by work from home.
“2023 saw the return of Itsu building ‘temple’ sites. Following a period of opening more shops in suburban areas, the confidence to open large, prominent, higher-rent restaurants returned as post-Covid trading patterns became clearer.”
Itsu added: “Margin pressure was significant, notably through energy in the early part of the year followed by the impact of inflation, notably food inflation, through to the end of 2023.
“Despite this level of cost inflation, Itsu was able to reduce food and labour costs (as a percentage of sales) through the second half of 2023, while also creating downward pressure on shop overhead costs.
“The benefit of this is clear in early 2024 results where restaurant margins are stronger year on year.”
Itsu also said: “The directors are confident that decisions taken through 2023 have set Itsu retail and grocery businesses up for long-term growth.
“2024 EBITDA is forecast to increase with continued building and calibration of the brand, the menu and the people culture, as well as an increased restaurant estate and an international grocery business.”