Capital Radio Restaurants' revamp hikes sales figures
A "RADICAL refocusing" of its business helped Capital Radio Restaurants to a 12% increase in sales in the year to 30 September.
The group, which bought restaurant chain My Kinda Town in November 1996, has sold off its loss-making restaurants in Germany, the Chicago Pizza Pie Factory in Dublin and Beach Blanket Babylon in London and is now concentrating on its Radio Café and Latin American brands.
Turnover rose from £20.7m in 1997 to £23.2m this year, with operating profit up from £2m to £2.3m.
"Our entertainment-based restaurants are bucking the trend," said chief executive Russell Scott. "They're not museums or mausoleums," he added, attempting to distance the venues from the troubled themed restaurant market.
Group chief executive David Mansfield said: "The cross-promotion and entertainment opportunities, particularly for our radio cafés, provide us with a unique, event-led product which encourages customers to visit regularly."
The eight German restaurants were sold in May and recorded a loss of £400,000 in the current year. Although profitable, Beach Blanket Babylon was sold because it "didn't fit our portfolio", said Scott.
The third radio café opens in Finchley Road, London, next week, with two more planned for Birmingham and Liverpool next year. Further sell-offs and conversions of other brands are likely.
