Loungers is expanding with plans for 18 new branches as it sees significant sales growth in the first half of the year.
- The Bristol-founded company has reported like-for-like sales growth of 4.7%, reflecting its robust performance in the hospitality sector.
- Loungers’ total revenue for the latest period was £178.3m, marking a substantial 19.2% increase from the previous year.
- The firm’s Ritorno Lounge in Bristol has become its most successful new site launch in 22 years.
- CEO Nick Collins attributes the growth to a variety of factors, including consumer confidence and the company’s flexible offerings.
The hospitality chain Loungers is set to broaden its footprint by opening 18 new sites over the coming six months, spurred by significant growth in sales figures. The Bristol-based company, which already operates 273 locations under the Lounge, Cosy Club, and Brightside brands across the UK, has seen a like-for-like sales increase of 4.7% compared to the previous year. The expansion reflects the company’s sustained success and robust market presence.
Loungers reported a remarkable rise in total revenue, achieving £178.3m for the 24 weeks ended October 6, up 19.2% from the previous year. This financial progression underscores the group’s strategic direction, with an ongoing effort to return to a pre-Covid EBITDA margin of 13.5%. Additionally, the company’s non-property net debt decreased from £14.3m to £12.2m, highlighting improved financial health.
The launch of the Ritorno Lounge, situated on Bristol’s harbourside, has been particularly noteworthy, with Loungers describing it as having “the strongest start for a new chain in the group’s 22-year history.” This achievement reflects the brand’s ability to outperform within the competitive UK hospitality market, setting a benchmark for future openings.
CEO Nick Collins expressed his satisfaction with the company’s trajectory, attributing the success to the dedication and professionalism of Loungers’ teams. His statements highlight the importance of the group’s innovative approach and adaptability in meeting diverse consumer needs 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,” Collins noted.
In retrospect, Loungers had already reported record results for the previous financial year, opening 36 new sites across the UK and achieving operating profits of £20.3m. This growth trajectory is set to continue with the upcoming expansion plans, reinforcing the group’s role as a formidable player in the UK hospitality landscape.
Loungers’ strategic expansion and outstanding performance highlight its ability to navigate and lead in the competitive hospitality market.
