The Breakfast Club focusing on expansion as turnover rises
The Breakfast Club restaurant chain has said it is focusing on expansion after a restructure of costs led to a "significant improvement" in its financial performance.
Catsteps Cafes Ltd, which operates the Breakfast Club brand, reported a slight reduction in operating losses to £947,442 in the year to 31 March 2023.
The group said the first six months of the reporting period had presented challenges, which saw the company record a significant EBITDA loss.
A significant restructure removed £600,000 from the business' cost base and from October 2022 it returned to monthly profitability, delivering £438,000 of EBITDA in the final six months of the period.
The business also saw gross profits increase from 73.2% in April 2022 to 77.5% in March 2023.
Turnover for the period stood at £18m, up from £15.4m the previous year.
The strategic report read: "Whilst the first half of FY23 may have started out with some considerable challenges, the business has responded and met those challenges, which has led to a significant improvement in financial performance over the last 18 months which has allowed us to expand the business in FY24.
"The aim of the business is to grow in the coming years and open further sites."
The restaurant group, known for attracting large queues, said the upturn in profitability had continued through FY24. Since the period end the group has closed its Battersea Rise site and opened two further sites in Soho and Covent Garden.
Breakfast Club's first site opened on D'Arblay Street in London's Soho in 2005. It has since expanded to three London bars and 15 restaurants in London, Brighton, Oxford and Chelmsford, while its first franchise site with SSP Group launched at London Gatwick Airport last year.
A 16th restaurant, at London St Pancras, is due to open later this year.
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