Wasabi eyes suburban expansion opportunities

Japanese fast-food brand Wasabi is eyeing expansion in the suburbs, which it described as "an attractive area for future growth" following strong sales at its existing suburban sites.

In the company's financial results for the year to 25 December 2021 filed with Companies House, including its US business, Wasabi reported a 34% increase in turnover to £68m. Earnings before interest, depreciation and amortisation (EBITDA) improved by 125.8% to a profit of £2m, although the group filed a pre-tax loss of nearly £11m.

The group said it planned to open further restaurants in the UK and remained "confident that these will be successful" and that it could improve the performance of its existing portfolio. By the year end, the business had opened four sites and closed four, keeping its number of sites at 47.

Following the impact of the pandemic, for the eight months after the 2021 financial reporting period, Wasabi said sales improved in line with 2019.

However, directors highlighted that the group was in breach of some of its loan covenants and although a waiver was obtained from the lender, which directors said they had a "reasonable expectation" would be extended, this cast "significant doubt" on the group's ability to continue as a going concern.