Wagamama owner reports 'very encouraging recovery' as restrictions ease

Wagamama owner reports ‘very encouraging recovery’ as restrictions ease

May 25, 2021

The Restaurant Group – owner of chains including Wagamama and Frankie & Benny’s – said sales had seen a “very encouraging recovery” as restrictions began to ease.

In the five weeks after the resumption of outdoor dining in April, sales at its 130 Wagamama sites and 75 Brunning & Price pubs were at 85% of pre-COVID levels in 2019, the group said.

The latter benefited from “significant outdoor space and investments in stretch tents and marquees”.

Live COVID updates as new guidance issued for eight areas with Indian variant

In its “leisure” division including Frankie & Benny’s – which have fewer outdoor places – the level was 60%.

“In the five weeks to 16 May, following the easing of restrictions across the UK we have seen a very encouraging recovery in sales,” the group said.

It added that the outlook for the rest of the year remained uncertain but it was well placed to take advantage from the further removal of restrictions.

Earlier in the year, the group was relying on high demand for takeaways and deliveries as government restrictions kept restaurants and pubs closed.

Shares climbed 1% on the update.

It comes a day after cinema chains Cineworld and Odeon revealed that the popularity of new film Peter Rabbit 2 had boosted trade in the week since screens reopened.

Meanwhile, figures from Barclaycard last week pointed to a 43% week-on-week increase in hospitality spending since indoor dining and drinking returned, and a 9% increase on pre-COVID levels in 2019.

The updates appear to point to continuing signs of a bounce-back for consumer-facing businesses as the economy reopens.

On Friday, official figures showed a 9.2% rise in retail sales in April while baker chain Greggs has said its sales have recovered to higher than pre-pandemic levels.

Read Entire Article