Garfunkel's owner says food sales up
The owner of the Garfunkel’s restaurant chain today dispelled fears that diners were spending less on eating out after serving up record results.
The Restaurant Group (TRG), which has 272 sites around the UK, also said like-for-like sales since the beginning of January were 3% ahead of a year ago.
Growth in 2004 was achieved despite strong competition and uncertainty over the sustainability of consumer spending, the London-based group said.
Pre-tax profits were up by a third at £24.7m (€35.6m) during a year in which the group opened 29 restaurants and focused on its concessions and leisure parks businesses where it sees greater growth potential.
Up to 30 new sites are due to open this year and TRG, which also owns the Caffe Uno and Frankie & Benny’s chains, is also in talks to buy a majority stake in bar operator Living Ventures.
It is ready to sell its 19-strong Est Est Est chain to Living Ventures as part of any deal which is expected to value the Living bar operator at £30m (€43.2m), including £9m (€13m) of debt.
Living Ventures has built up a portfolio of 11 Living Rooms, two Prohibition bars and two restaurants called The Bar & Grill since it was founded in 1999. It operates from locations such as York, Chester, Liverpool, Leeds and London.
Unveiling its results for the year to December 31, TRG said annual turnover increased to £255.4m (€368m) from £227.4m (€327.8m) and it would pay a 15% higher dividend than a year ago of 4.2p.
Executive chairman Alan Jackson said its profits improvement was due to strong like-for-like growth, excellent returns from new restaurants, cost savings and lower interest charges.
He said: “This combination represents a very healthy background to our continuing profitable development.”
