Loungers trading ahead of expectations as new site roll-out boosts bottom line
Cafe and bar operator Loungers has said it is trading ahead of expectations for the year, helped by the opening of 36 new sites.
The publicly listed firm, which owns Lounges, Cosy Club and Brightside chains across the UK, recorded a 24.7 per cent increase in revenue to £353.5m for the 53 weeks to the end of April.
Like-for-like sales were also up, rising 7.5 per cent across the 53 weeks.
Nick Collins, chief executive of Loungers, said his business has “consistently out-performed the sector”.
He said today: “I am delighted with our performance over the year. We have consistently out-performed the sector on a like for like basis whilst having delivered a record 36 new site openings.
“As ever, it’s our continued focus on menu innovation, value for money and exceptional hospitality that is driving the strength of our performance in both the mature estate and our new openings.
“As we start the new financial year we are looking ahead with optimism. Our experience suggests that the UK economy is holding up well and we are well positioned to deliver continued growth.”
The company credited its success to the rollout of 36 sites, a record for the business and seven more than it opened last year.
Lounges now has 257 sites and said it has “confidence to the continuing strength of the pipeline”.
Its consistent success comes amid a challenging period for hospitality, with many chains buckling under the pressure of rising costs and a slowdown in spending from consumers.
The operator of over 4,000 pubs – including the Slug and Lettuce and All Bar One chains – said there is a risk its debt cannot be refinanced by its July 2025 deadline.
“There is an indication that a material uncertainty exists that may cast significant doubt on the company and group’s ability to continue as a going concern for the going concern assessment period,” Stonegate said in a recent account filing.