Economy forces Hartford to shelve expansion plans

Restaurant and bar group Hartford has cancelled its plans for two new sites because of the continuing economic uncertainty.

Chairman Stephen Thomas said the London-based company had decided to "steady" its expansion plans in the short term and save cash to cut its debt by the end of the next financial year.

Results for the nine months ending 28 September 2002 showed Hartford's turnover up by 3% to £4.9m, compared with £4.7m for the same period in 2001. The company reduced its pre-tax losses to £728,000, from £5.9m for the 12 months to 30 December 2001.

The Common Room bar in Wimbledon saw sales increase by 46%, which the group said reflected its shift in emphasis from a food to drinks business.

The Wells pub in Ascot, Berkshire, saw a 3% sales increase, but Hartford will be reviewing the business because of its position on the outskirts of Ascot rather than in the centre. Sales at Hartford's other sites fell by 6% in the first eight weeks of the year, driven mainly by declines at its restaurants.

Turnover at the group's restaurants - Pharmacy, Canyon and Dakota - continued to fall. Dakota, also in Notting Hill, put in a disappointing performance. Hartford said a number of new openings in the area had hit sales and it planned to reposition the restaurant with a change in name and style.

Sales at Canyon in Richmond fell by 0.9%, while overall sales at Pharmacy in Notting Hill fell by 9%. To combat the decline, Hartford appointed Michelin-starred chef Hywel Jones as head chef last November.

Group chief executive James Kowszun said initial signs were encouraging. The group as a whole saw positive results in December and like-for-like sales at Pharmacy up by about 10%.

"Overall sales were down but we saw a small growth in December on last year, so I'm chuffed to bits," Kowszun said. "It's a hard market and we need to consolidate on what we've got and focus on making things right."