Bar and restaurant chain Loungers is set to open 18 new branches in the coming six months amid rising sales and consumer confidence.
- The company, originating in Bristol, currently operates 273 eateries across the UK under brands including Lounge, Cosy Club, and Brightside.
- Loungers recently reported a 4.7% like-for-like sales growth and a total revenue increase of 19.2% compared to the previous year.
- The company has successfully reduced its non-property net debt by £2.1 million, standing at £12.2 million for the period ending October 6, 2024.
- Loungers’ newly opened Ritorno Lounge in Bristol celebrated the best launch in the group’s history.
In a significant move, Loungers, the well-renowned bar and restaurant chain, has unveiled plans to open 18 new branches over the forthcoming six months. This expansion comes as a response to the company’s ongoing strong sales trajectory and the increasing confidence among UK consumers.
Founded in Bristol, Loungers already operates an expansive network of 273 locations under its various brands, such as Lounge, Cosy Club, and Brightside establishments across the United Kingdom. This strategic expansion underlines the company’s ambition to seize further market opportunities by broadening its reach.
Recently, the company recorded a commendable like-for-like sales growth of 4.7%, while its overall revenue soared to £178.3 million, marking a significant 19.2% rise from the previous year. This impressive growth trajectory highlights Loungers’ adeptness at outperforming the wider UK hospitality sector.
Additionally, a noteworthy aspect of Loungers’ financial health is the reduction of its non-property net debt, which has decreased from £14.3 million to £12.2 million. This financial prudence supports the company’s broader goal of returning to a pre-Covid EBITDA margin of 13.5%.
During this expansion period, Loungers opened 17 new sites, including the much-celebrated Ritorno Lounge on Bristol’s harbourside. According to the company, the Ritorno Lounge achieved the most successful start in the 22-year history of the Loungers’ chain.
Nick Collins, the Chief Executive, expressed his delight over the company’s recent results, attributing success to the dedication and professionalism of its teams. Collins noted, ‘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.’
The increase in sales reflects a broader consumer trend, as people across the UK show a greater desire to dine out and enjoy varied offerings. Collins stated, ‘That confidence, combined with the variety, breadth, flexibility and relevance of our all-day offering, is reflected in our continued sales success.’
In a previous financial year, Loungers set a record by opening 36 new sites, achieving an operating profit increase to £20.3 million from £14.7 million the year prior. This further establishes Loungers as a dynamic player in the UK hospitality arena.
Loungers continues to make prudent strategic expansions, aligning with consumer confidence and strong financial performance.
