Profits plummet for Giardino

Restaurant group Giardino has blamed fierce competition in the restaurant market for pushing it into the red.

The company, which has 56 restaurants, mainly in shopping centres, made a pre-tax loss of £2.4m in the six months to 31 July compared with a pre-tax profit of £1.27m for the same period last year. Turnover for the period increased by 14% to £12m from £10.4m.

The group has put six loss-making Café Giardinos, outside London, up for sale and has put its expansion plans on hold.
"It continues to be our view that the general economic background to our business will be poor over the next 12 months. Competitive pressures are likely to remain intense," said chairman John Moxon.

The group owns 43 Café Giardinos and three Pellini coffee shops. Other restaurants include Auberge and Azzuro, its pizza-pasta chain.

The majority of restaurants are in London and the South-east.