Tasty trading plummets in December after 'encouraging' year

Casual dining restaurant operator Tasty updated the market on its trading on Tuesday, reporting that for the second half of the year up to December it was “extremely encouraging”.

The AIM-traded firm, which operates the Wildwood and Dim T brands, said that, along with the rest of the hospitality sector, December - usually its strongest-performing month - was disappointing, especially given the level of the preceding few months' trading.

It said the rising infection rates of the Omicron variant of Covid-19, and in particular the reinstatement of working from home advice by the UK government, “significantly reduced” the number of customers dining out, and deterred larger Christmas bookings.

As a result, trading for the peak December period was “considerably weaker” than expected.

The company confirmed that its restaurants had so far remained open, with isolated Covid-19 disruptions, and was currently trading from 50 restaurants out of a total estate of 54.

It said the four restaurants that remained closed due to predicted poor trading conditions in their locality and labour shortages should reopen later in the year, although it would still consider the sale of two or three of the locations.

“Despite employment shortages, supply chain issues, Covid-19-related restrictions and a weaker Christmas, the company has, nonetheless, adapted well and navigated its way through the difficulties faced,” the board said in its statement.

“2022 will not be without its challenges as the company prepares for the end of Government support, in terms of reduced VAT and business rates.

“However, it is confident in its brands and optimistic about the trading potential of the group, especially with the strong revenue stream provided by takeaway and delivery services.”

At 1352 GMT, shares in Tasty were up 5.37% at 5.4p.