The Restaurant Group is rethinking real estate plans in light of shifting consumer sentiment, scrapping the roll-out of Wagamama delivery kitchens and cutting back on new pub openings.
In its interim results running to 3 July, chief executive Andy Hornby said the company had delivered “a robust financial performance in a challenging market”, with sales almost doubling to £423.4m and its loss narrowing to £28.5m. But he acknowledged an “uncertain consumer environment” that would usher in “challenges for the hospitality sector”.
The company said it would take a “disciplined approach” to long-term growth and was “adapting” its capital investment plans for next year.
It will cease the roll-out of Wagamama delivery kitchens, citing a “softening” of the delivery market, and reduce pub openings next year.
Other goals include negotiating “improved commercial terms” for new Wagamama restaurant leases, and maintaining Barburrito roll-out plans “given lower per unit capital requirement and limited market penetration”.
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