Spaghetti House reports ‘extremely difficult year’

Restaurant group Spaghetti House posted a loss in its latest accounts following an “extremely difficult year” for the business.

Rising inflation and wage costs have hit the company’s bottom line, and the group said footfall had not yet returned to pre-pandemic levels.

Spaghetti House was founded by Simone Lavarini and Lorenzo Fraquelli in 1955 in London’s Goodge Street and now has eight restaurants in central and west London.

Despite the challenges, the group reported its best ever gross profit margin of 77% during the 53 weeks to 31 March 2024, compared to 75% in the previous year.

Luigi Lavarini, the son of co-founder Simone, wrote in its accounts that a review of food waste, portion size and stock had helped control costs.

The company posted turnover of £10m in the 2023/24 period, up from £9.8m the previous year.

However, it reported a pre-tax loss of £177,000 compared to a £334,681 profit in 2022/23.

Spaghetti House has continued to expand and opened a restaurant in Earl’s Court under a new brand, A Braccetto, in March.

Photo: Andriy Blokhin/Shutterstock