GBK cuts operating losses by 76% following CVA
Gourmet Burger Kitchen saw its operating losses decrease by 76% as site closures and efficiencies associated with its CVA start to bear fruit.
The casual dining restaurant group, which completed a Company Voluntary Arrangement last December, saw system wide UK sales fell by 12.5% attributable to the closure of 24 stores during the CVA, which were followed by a further seven properties. However like-for-like sales saw a 8.6% uptick.
Within interim results for the six month period to 31 August 2019 CEO of parent company Famous Brand, Darren Hele, said: "In line with management's projections, the business made good progress, benefitting from the extensive range of operational improvements implemented, together with the CVA restructuring programme completed over the past year.
"Despite the subdued economy and general pressure experienced by the industry, GBK's like-for-like sales grew, attributable to intensified focus on the quality of the offering (product and experience); a targeted reinvestment in refurbishments; an intensified campaign to upweight online sales; and improved management of efficiencies and costs."
Revenue for the period fell 13% to approximately £34.3m, with operating losses decreasing by 76% to £573,551.
Hale added that external benchmarks put the business, which now comprises 73 restaurants, ahead of the market for the six months.
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