Volcano ash cloud slashes airport sales at TRG restaurants by 90%
The Restaurant Group (TRG) saw sales at its airport businesses plummet 90% for five days because of the effects of the volcanic ash cloud last month.
The company, which owns the Chiquito, Frankie & Benny's and Garfunkel's brands, said like-for-like sales rose 0.5% for the 18 weeks to 2 May but could have risen by 1.5% were it not for the impact of the eruption of Iceland's Eyjafjallajokull volcano on its concessions business.
Total sales were up 6% compared to the same period in 2009 and the company said that trading in its airports business was returning to normal although more recent airport closures in Ireland and Scotland had had a "small impact".
The Restaurant Group estimated that in total, the effects of the volcano had resulted in a £0.5m impact on its concessions division's bottom line, with cash costs of £0.3m and foregone profit opportunities of £0.2m.
Despite the difficulties, the company said it was "encouraged by the positive start we have made to 2010". The news came as part of a trading update ahead of the firm's AGM to be held later today.
Annual sales down at the Restaurant Group despite Christmas boost >>
Like-for-like sales down at The Restaurant Group >>
The Restaurant Group reports "resilient" first-half results for 2009 >>
](http://www.caterersearch.com/Articles/2009/08/28/329559/The-Restaurant-Group-reports-resilient-first-half-results-for.htm)*By Neil Gerrard*
E-mail your comments to Neil Gerrard here.
Caterersearch.com jobs
Looking for a new job? Find your next restaurant job here with Caterersearch.com jobs
|
