Wagamama owner enjoys sales boost

The owner of restaurant chain Wagamama said sales saw a strong return last year following the ending of lockdown restrictions.

However, The Restaurant Group (TRG) added it continued to trade at a loss of £32.9 million, although this was a vast improvement on the £132.9 million pre-tax loss in 2020.

Sales at the chain, which also owns Frankie & Benny’s and Brunning & Price venues, hit £636.6 million in 2021 compared to £459.8 million in 2020.

In the period between May last year and the beginning of January, like-for-like sales at Wagamama rose 15% compared to the same period in 2019 before the pandemic.

Its pubs business saw sales up 9% and its leisure division was up 14%.

This soared even higher in the first eight weeks of 2022, with Wagamama standing out – up 21%.

Chief executive Andy Hornby said it was a robust year “despite the various restrictions that have impacted the sector.”

He told the PA news agency that the company was “cautiously optimistic”, but recognised the challenging consumer backdrop.

“We will never take our customers for granted and are completely aware of the pressures they are facing,” he said.

“Any changes to pricing will always be below inflation and ensure great value for customers.

“It is inevitable that rises on bills, fuel, energy will all make people assess their spending so it makes it incredibly important we nail our proposition so they feel the experience is worth it.”

The company said it remains confident for the year ahead, although it flagged that costs could increase should the Ukraine conflict lead to higher inflation.

Energy prices have risen significantly for businesses due to soaring gas and oil costs, but TRG said it has hedged the majority of its energy costs until 2025.

There has also been a strong shift to customers choosing vegan and vegetarian options, with orders of vegan meals now more than 20% of total orders, up from just 5% previously.