Bar and restaurant chain Loungers is planning to open 18 new branches over the next six months as sales continues to soar. The Bristol-founded company already operates 273 Lounge, Cosy Club and Brightside eateries across the UK.
The firm’s announcement came as it confirmed like-for-like (LFL) sales growth of 4.7% over the previous year. In a trading update for the 24 weeks ended October 6, the group reported total revenue of £178.3m – up 19.2% on the year before.
The business said it was continuing to make “good progress” towards its target of returning to a pre-Covid EBITDA margin level of 13.5%. Non-property net debt for the period stood at £12.2m – down from £14.3m in October 2023.
Loungers opened 17 new sites during the period, including the Ritorno Lounge on Bristol’s harbourside in July.
“[Ritorno] has had the strongest start for a new chain in the group’s 22 year history,” Loungers said on Tuesday. “[Our results are] another clear demonstration of Loungers’ ability to consistently outperform the broader UK hospitality market.”
Nick Collins, the company’s chief executive, said he was “delighted” with the company’s performance.
“Enormous credit is due to the hard work and professionalism of our amazing teams,” he said. “The opening of our Ritorno Lounge on Bristol’s harbourside, where we are holding our AGM today, has been our best-performing new site ever. This is particularly gratifying given Bristol is the city in which the Loungers story first started 22 years ago.”
Mr Collins said UK consumers were feeling “increasingly confident” and wanted to “go out and enjoy themselves” across all parts of the day.
“That confidence, combined with the variety, breadth, flexibility and relevance of our all-day offering, is reflected in our continued sales success,” he added.
In July, Loungers reported record results for the last financial year in which it opened 36 more sites across the UK. The company posted operating profits of £20.3m for the year ending April, 2024, up from £14.7m the year previously.