Madisons to expand Richoux restaurants
Madisons Coffee is to concentrate on expanding its restaurants after they turned in a better performance than its coffee bars.
The group said its Richoux restaurants, which it bought from Chez Gérard in August 2000 for £2.7m, would be the main focus for its expansion plans as the financial returns were better and the operation less complex than its coffee-bar activities.
It added that despite substantial growth in the coffee-bar market over the past few years, it expected to see some operators taken over in the near future.
In the six months to 6 January, Madisons recorded a 2.8% fall in turnover to £7.75m, compared with £7.97m a year earlier. It attributed the dip to the disposal of six coffee bars and the closure of one unprofitable site.
Pre-tax losses were reduced by 11.2% during the period to £569,000, compared with £641,000 in 2001.
Overall like-for-like sales for the bars and restaurants increased by 1%.
Madisons also announced a third Richoux franchise agreement for up to three restaurants in Kuwait. The franchisee has paid an initial £250,000 and Madisons will receive fees from the opening of the restaurants and royalty fees based on turnover.
Richoux is being developed in three areas in the Middle East: Kuwait, Qatar and the United Arab Emirates. The first international restaurant opens in Qatar this year.
by Samantha McClary
