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Wagamama-owner sees encouraging sales as lockdowns loom

Despite improving sales, the owner of the Wagamama chain withdraws its financial guidance
Despite improving sales, the owner of the Wagamama chain withdraws its financial guidance

Wagamama owner Restaurant Group today unveiled improved like-for-like sales numbers for the period since the start of July.

But it also withdrew its financial guidance and warned about the impact of renewed coronavirus restrictions in the UK.  

The company, which operates over 350 restaurants and pubs across the UK, posted an adjusted pretax loss of £47.5m, for the six months to June 28, compared to a profit of £28.1m a year earlier. 

The group also laid out a total of 180 poorer performing sites it has exited as a result of placing the Chiquito and Food and Fuel operations into administration and dramatic downsizing of Frankie and Benny's chain. 

It said its performance in the eleven weeks to September 4, which included the UK government's eat out to help out scheme, was encouraging, with Wagamama like-for-like sales up 11%. 

The company said that while the outlook for the sector remained extremely challenging, the company was well-positioned with sector capacity reducing and a freshly restructured business. 

The UK government has imposed fresh restrictions in recent weeks to combat a second wave of the coronavirus, including shutting restaurants and pubs early. 

Restaurant owners, already reeling from the pandemic, will face a further blow if stronger lockdowns are announced.