Yahoo Finance Losses widen at Café Rouge, Bella Italia and Frankie and Benny’s owner The Big Table
Losses widened at The Big Table, the owner of Café Rouge, Bella Italia and Frankie & Benny’s, despite its turnover rising during its latest financial year.
The group slipped to pre-tax losses of £13.8m for the year to October 29, 2023, after also posting losses of £6.1m in the prior 12 months.
According to newly-filed accounts with Companies House, the firm’s turnover increased in the year from £26.1m to £31.6m.
The Big Table’s brands also include Las Iguanas, BananaTree, Amalfi, Filling Station, Coast to Coast, Chiquito, Firejacks and Est.
During the year the average number of people employed by the group increased from 4,087 to 4,236.
‘Our response to rising costs was game changing’ – The Big Table
A statement signed off by the board said: “The year started with a stronger festive period than 2021. The prior year had been materially impacted by the capacity restrictions in place at the Center Parc villages given Omicron and Plan B, which meant significantly lower footfall.
“Across the year there was a range of headwinds that continued to impact the restaurant sector.
“The biggest challenge to the sector was rising inflation, which had commenced during 2022 but which had greater impact in 2023.
“The cost of food, beverage, energy and various other cost lines rose materially, which required us to proactively respond and mitigate.
“We think our response to these rising costs was game changing, as we saw the procurement, operations and food development teams embrace the opportunity to work with our key suppliers and partners to unlock opportunities that not only mitigated inflation but also enabled us to improve the menu and the guest experience.
“The success of this strategy meant that we were able to mitigate without simply passing on the rising costs to our guests, which is important when consumers are facing the same cost challenges.
“Summer trading saw increases in average weekly sales although the cost of living challenge was more evident in the following months.
“Peak periods, coinciding with school holidays, were the stronger trading weeks.
“Despite the impact of rising inflation, the year also saw opportunities to drive efficiencies and respond to the challenges facing the sector.
“Stronger sales forecasting, more efficient deployment of labour and the use of technology provided opportunities.
“Our continued focus on the guest and their experience, together with the support of our team, has enabled the business to refocus our brand propositions and deliver on ways that will provide stronger foundations for the year ahead.”
‘Strong start’ to new financial year
The accounts come after The Restaurant Group sold its Frankie and Benny’s and Chiquito sites to The Big Table Group in September 2023.
As part of the deal, the Wagamama owner paid a cash contribution of £7.5m to the acquirer to take the 75 underperforming sites off its hands.
On its future, The Big Table said: “The start of the 2024 financial year was stronger than prior year. High occupancy at Center Parcs during the the festive period enabled a number of our restaurants to deliver record weekly sales.
“The impact of inflation continues, though we are starting to see signs of reduction in a range of areas including meat, poultry, desserts, cheeses and diary.
“Given our success in mitigating inflation during 2023, we remain confident that we can continue that impact by working with existing and new suppliers.
“The company has a strong cash balance and has no bank debt and therefore is not exposed to the increasing cost of debt that other operators in the sector will be facing.
“Our strengthened trading performance and strong economic model provides a great platform for growth in 2024 and beyond.
“Whilst there will remain some level of sector headwinds, the directors remain confident that we will successfully navigate the year ahead and provide opportunities for our guests, our team and our investors.”
