Cafe restaurant chain Loungers has said it plans to open 34 more venues over the next year as it hailed record revenues.
The group, which runs individually-branded Lounge sites and Cosy Club venues, revealed that revenues jumped by 19% to £283.5 million for the year to April 16.
The company also reported like-for-like growth of 7.4% over the year as it shrugged off pressure on consumer budgets.
Loungers also cheered a “positive” outlook for its brands, as it reported 5.7% like-for-like growth over the 12 weeks since the end of the financial year.
It said new site opening have performed “exceptionally well” and highlighted that its pipeline of potential new restaurants is “as strong as ever”.
Growth over the past year was buoyed by the continued rapid expansion programme which saw it open 29 new locations across the UK, taking it to 232 sites.
It told shareholders on Wednesday that it plans to open 34 more venues over the current year and sees “potential for at least 600 Lounges” across the country.
Based on the revenue growth we’ve been seeing in our coastal venues since then, we’re confident that 2023 will be a record-breaking year both in terms of revenue and visits
On Wednesday, the firm also reported that it dropped to £7.3 million pre-tax profit over the year to April, from a £21.6 million profit a year earlier as it saw Covid-era support from the Government removed.
Nick Collins, chief executive officer of the group, told the PA news agency that inflationary pressures are easing in a boost for customers.
“We feel we have largely mitigated most of the inflationary pressure well but also can now see that this inflation is diminishing,” he said.
“We are renegotiating some of our food costs soon and because we are a much bigger customer than when we first started our contract, we will be able to secure some significant savings.”
The boss said he was optimistic as a result of the improving inflationary backdrop and beneficial consumer trends.
It came as the group also revealed new research forecasting that coast tourism in the UK is on track to generate £20 billion for the first time this year.
Mr Collins added: “Based on the revenue growth we’ve been seeing in our coastal venues since then, we’re confident that 2023 will be a record-breaking year both in terms of revenue and visits.
“The enforced staycations during the Covid pandemic reminded people of the fantastic range of holidays available in the UK, and the cost-of-living crisis means that some people will be looking to lower the cost of their annual summer break.
“Add to that the growing awareness of the environmental impact of air travel, and the fact that the Met Office is predicting that the UK summer of 2023 will be even hotter than that of 2022, and the stage is set for a hugely successful holiday season for coastal tourism.”
