The Restaurant Group sees volume boost after decrease in 2017 sales

THE RESTAURANT Group reported a 3 per cent fall in 2017 comparable sales as UK consumers spent less on drinking and eating out, but the owner of the Frankie & Benny’s chain said its latest measures to boost volumes had started showing results.

Shares rose by 3.6 per cent in early trading.

In the face of slowing sales, the company has rolled out new menus, added value-meal options, cut prices on several items and included more options targeted at families.

The group, which also owns restaurant brands such as Garfunkel’s, Chiquito and Coast To Coast, said these changes “progressively improved volume momentum” in 2017, and added that its expectations for its 2018 sales trajectory remained “broadly unchanged”.

Rising competition from food-focused pubs in recent years and a fall in visitors to retail parks, where many of its outlets are located – possibly due to the increase in online shopping – has hit store footfall of the Restaurant Group’s brands.

The company said like-for-like sales for the 52 weeks ended December 31 were down by 3 per cent, with total sales falling by 1.8 per cent.

The trend has also been experienced by other operators in the sector, including FTSE-100 leisure giant Whitbread.

However, the Restaurant Group said it expected pre-tax profit for 2017 to be in line with market expectations.

Founded in 1987 as City Centre Restaurants, the Restaurant Group now owns and operates more than 500 restaurants and pubs in the UK.