Restaurant Group sees 'encouraging' sales recovery as Covid curbs eased

For In the five weeks to May 16 around 130 Wagamama sites were open and traded at 85% of comparable 2019 sales levels, representing a 15% outperformance of the market and “reflecting ongoing strong delivery volumes and good trading from outdoor space in many locations”.

“The group currently has approximately 350 sites open across its Wagamama, pubs and leisure businesses, representing 95% of their respective combined estates. The concessions business currently only has four sites trading, given restrictions regarding international travel,” the company said on Tuesday.

Restaurant Group’s pubs division saw trade at 85% of comparable 2019 sales levels, representing a 15% outperformance of the market and benefiting from “significant outdoor space and investments in stretch tents and marquees” in response to bans on people drinking indoors.

“While the environment for the remainder of the year continues to remain uncertain, the group is well positioned across its diversified brand portfolio to benefit from the sustained removal of government restrictions,” the company said.

“The group currently has in excess of £200m of cash headroom on its debt facilities, providing significant liquidity headroom to protect against a resurgence / new variant of Covid-19 as well as strengthened flexibility to capitalise on selective site expansion in its Wagamama and pubs businesses.”