Cafe Rouge owner reports £60m loss as sector struggles
The owner of High Street food chains Cafe Rouge and Bella Italia has posted a sharp increase in losses, as the UK restaurant sector comes under pressure.
Casual Dining Group said losses to May 2017 increased 18% to £60m, despite a 2.2% rise in like-for-like sales.
It said it had faced challenging conditions “due to consumer confidence levels and the broader impact on discretionary spending”.
The firm also said it had seen a “significant” rise in costs.
These cost increases included:
- The introduction of the National Living Wage and associated increases to it and the National Minimum Wage
- The introduction of the Apprenticeship Levy and increased Employer’s Pension Contributions
- Food and drink cost inflation driven by the devaluation of the pound
- Revaluation of business rates and rent increases, particularly in central London
The £60m loss included an exceptional cost of £24.4m related to additional financing arranged during the financial year.
Total sales for the year were £329m, up 10% due to new site openings and sales growth from existing sites.
Click here to read more (Source: BBC News)