Upwardly mobile 20 September 2019 The founders of coffee and brunch chain Caravan are on the move, taking their business model to new Chelsea restaurant Vardo
In this week's issue... Upwardly mobile The founders of coffee and brunch chain Caravan are on the move, taking their business model to new Chelsea restaurant Vardo
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Operator of Cafe Rouge looks to cut costs

05 November 2018 by
Operator of Cafe Rouge looks to cut costs

Casual Dining Group, operator of the Café Rouge brand, has appointed a restructuring adviser as it seeks to cuts costs.

The company is looking to negotiate with landlords to cut rents and rates. Steve Richards, chief executive of CDG told The Sunday Times that the company is taking steps "to ensure that the core business is in good shape for future growth".

In July CDG secured a cash injection of £30m and refinancing with American private equity company KKR which was said would provide "a long-term capital structure for the group, strengthens the balance sheet and positions CDG for growth".

CDG's most recent financial resulted highlighted the difficulty faced by casual dining companies. In the 52 weeks to 28 May 2017 the group revealed an overall pre-tax loss of £60m, while total revenue was up 10% year-on-year to £329m, with like-for-like sales increasing by 2.2%. Increased costs, including the national living wage, apprenticeship levy, pension contributions, food inflation and business rates, alongside the devaluation of the pound were all said to have taken their toll.

CDG operates nearly 300 mid-market restaurant brands including Las Iguanas and Bella Italia as well as Café Rouge.

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