Buzzworks sees revenues rise to £29.9m
The company also invested in the refurbishment of its current portfolio including Lido Troon, Scotts Largs and Herringbone venues in Goldenacre and North Berwick
Buzzworks Holdings Limited has reported a 19% increase in revenue to £29.9m for the year ending 30 April 2023.
Its like-for-like sales were also up 5.3% for the five weeks to 31 December 2023 which came on top of “strong growth” last year.
However, the group recorded underlying EBITDA before site opening costs and non-recurring items of £2.94m compared with £3.95m in 2022 which was supported by the reduced VAT rate on food sales and the payment holiday on business rates.
As part of its growth strategy, Buzzworks continued to invest in new and existing venues. This totalled £4.7m in the year including the opening of Scotts in Greenock as well as further expansion into the east coast with Thirty Knots in South Queensferry followed by the opening of Herringbone Abbeyhill on London Road, Edinburgh.
The company also invested in the refurbishment of its current portfolio including Lido Troon, Scotts Largs and Herringbone venues in Goldenacre and North Berwick.
The Ayrshire-based family firm also created 100 new jobs in the last year and plans to double the size of its business creating 800 new jobs. Negotiations are also underway on three new venues.
Kenny Blair, managing director and member of industry body Scottish Hospitality Group, said: “We have stuck to our plans for expansion, investment in our portfolio and development of our people and despite challenging conditions, we’ve had a successful year. Our formula of investing in great properties in towns and suburbs across the country, introducing our unique blend of food, drink, style and service, is one that is working for us.
“Hospitality is an integral part of life throughout the country and without it, our towns and cities would be pretty miserable places to live. We want to continue to invest but we’re not immune to external factors coming our way that will impact the pace for growth. Our industry is experiencing pressures from increased property costs, increased rate of pay from National Living Wage and general overhead inflation including energy costs. We’re trying to navigate this and won’t compromise on our high standards.”
He added: “The goal is for Scotland to be a place where hospitality businesses thrive rather than survive – communities where jobs and careers are created for local people in venues that can be enjoyed by all. This is what will drive us forward and we are confident the good momentum we are seeing will put us in the best possible position to fulfil our ambitious growth plan.”
