Cheaper food and drink is on the menu at trendy wine bar chain Jamies Bar as it tries to cope with tougher trading conditions, it emerged today.
The company, currently in bid talks, has introduced less expensive options to attract customers back to its 17 sites in the City and central London.
Trading was hit at the end of last year as the sharp downturn in the media and advertising industries dented punters’ spirits.
Sales at Jamies Bars’ site in Charlotte Street, Soho, have fallen 17% due to its location in the capital’s adland. Like-for-like sales across the estate were down 1.6% in the first half of the group’s current financial year to 2 February.
A wider range of £15 to £16 wines has now been introduced, while more food is being added to the menu, particularly at lunchtimes.
Joint managing director David Colbeck said: “The market is struggling and corporate expenses are being targeted. We are therefore giving people the opportunity to spend less but still have a bit of choice.”
The group has also tried to cut down on overheads throughout its business and overall sales growth has now begun to pick up.
New openings helped group turnover jump 23% in the first half to £5.4m as pre-tax profits climbed 11% to £216,000 before property gains.
Jamies Bars made £250,000 on property disposals, meaning bottom-line pre-tax profits in the first half were £466,000. The group said two weeks ago it had been approached by a company about a bid but added it was not certain if any offer would be made.
Colbeck said the situation was still unclear: “It’s very frustrating for us, it’s very unsettling but there is nothing we can do about it.”
The group’s shares were unchanged at 51.5p by late afternoon.
EGi News 26/03/02
