The Restaurant Group sees H1 profits hit £41m

The Restaurant Group has reported profits before tax of £41.7m for the first half of 2022, compared with £11.2m during the same period the year prior. 

The results, from the 26 weeks to 3 July 2022, saw total sales at £423.4m, compared with £216.8m for the same period the year prior. 

The group, which owns establishments such as Wagamamas and Barburrito, has reported a strong pipeline of new UK Wagamama restaurants with improved commercial lease terms.

The group also bolstered its restaurant presence with the Barburrito acquisition, continuing to trade ahead of the market, with outperformance of 13% for the 33 weeks to 21 August 2022.

Andy Hornby, chief executive officer, said: “We have made good progress in the past six months, delivering a robust financial performance in a challenging market, with continued LFL sales outperformance.  I’d like to thank each and every member of our teams for their phenomenal efforts in delivering these results. 

“We have taken decisive management actions to reduce the impact of the industry cost pressures including fully hedging our utilities until December 2024 and reducing our interest rate exposure through interest rate caps.”

He added: “Whilst the uncertain consumer environment presents challenges for the hospitality sector, the Group is well positioned to further develop our brands to deliver long-term growth for all stakeholders underpinned by our strong balance sheet.”