Loungers: Cafe and Bar operator looks for further expansion as cooling inflation for hospitality boosts revenue
Cafe and bar operator Loungers revenues jumped 19 per cent during the year, as the owner of the Lounger and Cosy Club was bolstered by 29 new site openings.
The London-listed hospitality chain recorded earnings of £47.3m which represents growth of 66 per cent since it first listed on the stock exchange in April 2019.
During the year operating profit declined to £14.8m, which Loungers said reflects the impact last year of government support measures, which have now come to an end.
The group revealed plans to open a further 34 sites next year, adding to its portfolio of over 100 cafes and bars across the UK.
Over the 12 weeks since the year end, Loungers also recorded a 5.7 per cent hike in sales, as the group also noted a cooling in inflationary pressures which have been hitting hospitality businesses hard.
“Based on our experience the UK consumer remains positive, inflationary pressures are diminishing and recruitment challenges have eased,” Nick Collins, chief executive officer of Loungers, said.
“As an example, a few weeks ago, we opened Ormo Lounge in the seaside town of Llandudno which achieved a record level of sales for any new Lounge opening in our 22-year history, reflecting the relevance of our offer and how well we trade by the coast.”
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