Restaurant Group goes vegan to battle crunch in casual dining
THE Restaurant Group is planning to increase its offerings of home deliveries and vegan meals to win new customers, it said today.
The casual-dining giant, which is also behind Mexican-themed chain Chiquito, revealed the strategy as it posted a 4.4% drop in total sales last year to £679.3 million.
Comparable sales fell 3%, but that was better than the 3.3% analysts had pencilled in. Pre-tax profits fell to £43.6 million from £49.3 million.
Chief executive Andy McCue, who is trying to turn the business around, revealed plans to boost performance this year which include adding more vegetarian and vegan dishes to menus.
He added that in the year to February, the firm more than trebled the amount of sites that offer a Deliveroo service to 130.
It is now trialling deliveries using UberEats and Just Eat, and said that in total, around 200 of the group’s branches could offer door-drop takeaways before the end of this year. “We think that market has a good way to grow,” said McCue. The former Paddy Power boss joined the company in 2016 to help it bounce back from falling sales, as rising competition from food-focused pubs hit footfall.
Like rivals, the firm is also grappling with higher business rates, wages and ingredient costs.
McCue has since introduced a £9.95 two-course fixed price menu at Frankie & Benny’s, and closed some sites. He has also hired a property agent to review the future of the Chiquito flagship in Leicester Square.
He said The Restaurant Group is starting this year as a “leaner and more focused organisation”.
The firm maintained a dividend of 17.4p and the today shares jumped 24.2p to 261.6p.
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