Wagamama owner The Restaurant Group burns through £5.5m a month during lockdown
Wagamama owner The Restaurant Group has said it expects to burn through £5.5m a month until lockdown restrictions are lifted.
The group announced details of the cash burn rate at Christmas but today said it expected to stay at this level until the end of restrictions, which are due to be lifted no earlier than 17 May.
The Restaurant Group also announced it had agreed to new long-term loans worth £500m. The £380m term loan and a simultaneous drawing of the revolving credit facility will be used to repay and refinance all of the company’s existing debt facilities, including the government’s CLBILS.
The company, which also owns the Frankie and Benny’s chain, has been battered by the pandemic after it forced it to close its doors for the majority of the year.
The group currently has around 200 sites open for delivery and takeaway which The Restaurant Group said “has been very encouraging”. Average standalone delivery and takeaway sales in its Wagamama and Leisure business is 2.5x and 5.0x pre-Covid levels respectively.
“With this strong operating platform in place, the Group has good capability to deliver an accelerated reopening plan for dine-in trading, once the current restrictions for hospitality businesses end, with all viable sites being reopened within two weeks,” the company said today.
Shares are up more than six per cent in early trading.