Fridays restaurants report dip in sales
Hostmore, which operates the Fridays and 63rd+1st restaurant brands, has reported a slight dip in sales for the first few months of the year.
Like-for-like revenue for the 22 weeks to 4 June 2023 were down 3%, while total revenue was down by 1% for the period.
Hostmore said its cost reduction initiatives were benefitting earnings, with other opportunities for savings being evaluated. The company came under fire earlier this year over plans to scrap the provision of free meals for staff working shifts of 10 hours or longer.
The business has deferred any planned new openings to focus on repaying its loans and borrowings and said its focus remained on cash flow generation.
Outgoing Hostmore chairman Gavin Manson said: "Our focus continues to be on implementing high ROI organic growth initiatives and extending the lifetime value of our guests by adding further to the guest experience through our three pillars of quality, relevance and simplicity. This is expected to increase the number of annual repeat visits by our customers.
"With the revision to our capital allocation policy, to prioritise debt repayment and shareholder distributions, I am confident that this will ensure a reduction in net debt and an ongoing improvement in profitability."
Manson stepped down from the board yesterday to focus on his other executive commitments, with Stephen Welker stepping up to become the chairman and Julie McEwan and Helena Feltham joining the board. McEwan was appointed permanent chief executive of Hostmore last month following the departure of Robert Cook.
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