Restaurant Group PLC, who own Chiquito, Frankie & Benny’s and Garfunkel’s restaurant chains have announced that despite the effects of the riots
and the recession hitting many businesses hard their sales in recent months have actually grown.
Before the riots erupted, the company saw a three per cent rise in sales for the first half of this year (January to July), as compared to the same period last year. The three per cent rise in sales has resulted in an overall eight per cent increase in profits for that period, which totals around £24.4 million.
Sales for the second half of the year have started well despite the riots breaking out in August, with a sales increase of 2.75 per cent when compared to the same time last year. Andrew Page, Chief executive stated, “Despite the recent raft of downbeat news-flow and the disturbances in early August, we’ve made a good start to the second half.”
Unlike many of Chiquito, Frankie & Benny’s and Garfunkel’s rivals, the firm has not taken part in two-for-one or buy one get one free (BOGOF) offers, which they believe is why their sales and profits margins are so good despite the recent setbacks, as Andrew Page expressed, “As always, we are continuing to focus our efforts on our customers by offering great service, value and hospitality. Our team have been fantastic and I am confident that everyone will be working towards making sure that 2011 is another successful year.”
Many of Chiquito, Frankie & Benny’s and Garfunkel’s commercial properties are not based in city centres as the company favours out of town locations like retail parks. This strategy resulted in many of Restaurant Group’s commercial properties being unharmed during the recent riots as the majority of the damage was based in and around town centres. Even though the commercial properties remained intact, the company still had to close over 40 stores to protect their staff and customers for fear that the riots could have spread further afield.
Currently the company own 387 commercial properties, but the sales and profit boost this year, Restaurant Group PLC have already opened seven new commercial properties to house its restaurants and plans to open a further four more this year. Andrew Page reports, “These are good results from The Restaurant Group – turnover, profits, earnings, cashflow and dividend per share are all well ahead of last year. Against a tough economic backdrop, ongoing cost pressures and with household incomes being squeezed hard, this performance demonstrates the ongoing resilience of TRG’s businesses and the strength of our team and our brands.”
Restaurant Group PLC was originally formed in 1987 under the name ‘City Centre Restaurants PLC.’ The company already owned Garfunkel restaurants, but in the late 80s they added the Chi Chi’s chain to their portfolio, but renamed it to Chiquito. The group opened their first Frankie & Benny’s in 1995 and nine years later changed their name to ‘The Restaurant Group PLC’ as it stands today.
