Loungers' turnover passes £90m mark

01 November 2017 by
Loungers' turnover passes £90m mark

Café/bar/restaurant group Loungers continued its rapid growth in its last financial year, as its turnover moved past the £90m mark.

The business saw revenues climb from £68.5m to £91.8m in the year to 23 April 2017, representing a 34% rise in net sales.

That was thanks to another 20 site openings, including 16 Lounges and four Cosy Clubs.

Meanwhile, like-for-like growth was 5.3%, up from 2.2% in the prior year.

Like-for-like sales growth for the current year to date (24 weeks to 8 October 2017) was even stronger, up 7.4%.

Underlying EBITDA for the year to 23 April 2017 was also up, from £8.4m to £12.3m. Loungers attributed the 46% increase to strong cost control and the renegotiation of a number of supplier contracts, as well as benefitting from economies of scale.

The company has squeezed the cost of each of its units, reducing it by 8%, and it invested £12.9m of capital expenditure, which was less than in 2016.

Loungers also pointed to the importance of its rent to revenue ratio, which improved to 5.8% from 6% in the prior year.

The company currently has a total of 108 sites and is on track to open a further 24 sites this financial year.

Loungers, now run by chief executive Nick Collins, was founded 15 years ago in Bristol by friends Alex Reilley, Jake Bishop and Dave Reid.

The Caterer Interview: Alex Reilley and Nick Collins >>

Loungers founder Alex Reilley appointed to Hubbox board >>

Alex Reilley: Government should take hospitality seriously to avert recruitment crisis >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

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