THE parent owner of Frankie & Benny’s and Wagamama has shrugged off the consumer cost-of-living crunch to reveal "very encouraging" trading so far this year.
The Restaurant Group (TRG) saw shares jump higher in early trading after it also hailed strong progress on its cost-savings efforts, which include the previously announced closure of around 35 venues across its leisure brands.
Casual dining brands have faced significant pressure over the past year from sharp rises in food costs and energy bills as well as its customers facing higher household bills.
TRG closed its Sprucefield Frankie & Benny’s outlet in 2020, leaving it with two locations in the north. It also operates Wagamama from Victoria Square in Belfast and from a site in Dundonald.
TRG said on Wednesday that Wagamama has reported a 5 per cent like-for-like increase in total sales over the 28 weeks to July 16.
Meanwhile, its pub business reported a 9 per cent increase and its leisure business, which includes Frankie & Benny's, saw a 4 per cent decline.
Its concessions business reported a 28 per cent increase for the year so far as it was boosted by an increase in travellers at airports and other travel locations.
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The group said the Wagamama brand has seen sales accelerate in recent weeks after a temporary impact from hot weather in May and June.
Sales across the pan-Asian chain rose 21 per cent over the two weeks to July 16 as it made a positive start to the latest quarter alongside the firm's other divisions.
TRG also told shareholders that its recently opened Wagamama sites are "trading ahead of expectations".
The group said it has made an "excellent start" to its current strategy, with it accelerating plans to open more Wagamama sites and pushing forward with the closure of 35 leisure restaurants.
