Loungers, a Bristol-founded chain, is set to expand with 18 new sites amidst strong financial performance.
- The company operates 273 locations across the UK, including Lounge, Cosy Club, and Brightside eateries.
- Loungers reported a 19.2% increase in revenue, reaching £178.3 million for the first half of the financial year.
- Non-property net debt decreased to £12.2 million from £14.3 million the previous year.
- Ritorno Lounge in Bristol had an unprecedented start, marking the company’s best-performing new site ever.
In a bold move signaling robust growth, Loungers, the UK-based bar and restaurant chain, announced its plans to establish 18 additional branches over the upcoming six months. This expansion comes as the company continues to observe a significant rise in sales figures.
Currently boasting a total of 273 establishments, Loungers operates well-known venues under the Lounge, Cosy Club, and Brightside brands throughout the UK. This expansion reflects their strategic effort to capture a larger share of the hospitality market.
The company’s financial performance offers a solid backdrop to this expansion. Loungers reported total revenue of £178.3 million for the 24 weeks ending October 6, marking a 19.2% increase compared to the previous year. Furthermore, like-for-like sales grew by 4.7%, underscoring consistent performance across their locations.
Demonstrating effective debt management, Loungers successfully reduced their non-property net debt to £12.2 million from £14.3 million in October 2023. The company is also making strides towards achieving a pre-Covid EBITDA margin target of 13.5%, showing sustained recovery from the pandemic’s financial impact.
Among the recently opened sites, the Ritorno Lounge located at Bristol’s harbourside has emerged as a standout performer. According to the company, the location has recorded the best opening in the group’s 22-year history, highlighting the strength of the brand and its offerings.
Nick Collins, CEO of Loungers, expressed great satisfaction with the company’s recent achievements. He attributed their success to the dedication and professionalism exhibited by their staff, emphasizing the growing confidence of UK consumers who are eager to enjoy dining experiences throughout the day.
The company previously recorded operating profits of £20.3 million for the fiscal year ending April 2024, a notable rise from the £14.7 million recorded in the preceding year. This financial health further solidifies Loungers’ position as a leader in the competitive UK hospitality industry.
Loungers continues to demonstrate strong growth prospects with strategic expansion and impressive financial metrics.
