Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Wagamama boss confident chain can bounce back after restrictions ease

16 December 2020 by
Wagamama boss confident chain can bounce back after restrictions ease

The chief executive of Wagamama said there is "real confidence" the restaurant group can return to market-leading performance once coronavirus restrictions are lifted.

Emma Woods said the chain, which is owned by the Restaurant Group (TRG), had seen strong sales across its eat-in and delivery business during the third quarter of the year, which was the last point trading was close to normal.

Like-for-like sales rose 7.4% in the 39 weeks to 27 September, buoyed by the government's Eat Out to Help Out scheme in August.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) also increased to £18.1m as the business managed costs and renegotiated a number of rent deals.

But the impact of coronavirus restrictions meant revenue for the year to 27 September decreased 37.4% to £158.9m, while adjusted EBITDA fell to £20.6m.

Woods said: "We are encouraged by the strong performance of the business in Q3, both for eat in and delivery.

"This was the last point we were able to trade in any sense normally and provides real confidence that the business can return to market-leading performance when restrictions are again lifted."

In April TRG unveiled a survival package which included adding £15m to Wagamama's credit facility, taking it from £20m to £35m.

TRG, which also owns Frankie & Benny's and Chiquito, reduced the pay of some of its senior team by 20%-40%.

Photo: Shutterstock

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking