Ask raises turnover and profits by 30%

Pizza and pasta restaurant group Ask Central increased profits and turnover by 30% last year.

In the 12 months to 30 December 2001, turnover at the group increased by 29% to £78.9m, compared with £61.1m in 2000. Pre-tax profit was up by 30% to £13.6m, against £10.6m a year earlier.

Chairman George Cracknell said that despite general trading difficulties in 2001 caused by the foot-and-mouth outbreak, the strong pound and the events of 11 September, trading at Ask was robust.

"December was a particularly good trading month," he said, "and the run-up to Christmas produced record results."

He cited a comprehensive menu, value for money, good staff and a loyal clientele for the strong results.

He added that trading in the three months since the year-end was up on the same period in 2001.

During the year Ask opened 24 new restaurants, with a further three having opened since the year-end. Five more restaurants are under construction.

The group now has 129 restaurants throughout the UK and anticipates further growth during the year.

Labour costs will be the most challenging issue in 2002, said the group's finance director, Martin Eckersley.

He said the group would have to up its waiting staff's wages if it wanted to retain them.

Ask, which admitted last November that it paid staff less than the minimum wage but used credit card tips to increase waiting staff's pay packets, said it would now look at increasing workers' basic rate to the national minimum wage.

Eckersley said more and more restaurant operators were increasing wages, which was putting Ask under pressure to do the same. "If we don't do anything about this we will start to lose our staff," he said.

Currently, 29% of Ask's turnover is spent on labour costs.

by Samantha McClary