Ambitious restaurant chain plans to open 35 new sites as it continues to outperform market

Restaurant chain Loungers has bounced back from the pandemic and continues to open new sites across the country.

The business, which was launched in Bristol by three friends, now runs 222 sites across the country and is planning to open another 35.

Founder and chairman Alex Reilley is speaking at a networking organised by the BusinessDesk.com in Bristol next month.

Loungers operates the Cosy Club and the recently launched Brightside brands.

In a trading update the group said like for like sales growth was up 7.4 per cent on a one-year basis and 17.6 per cent ahead of pre-pandemic levels on a three year basis.

The group delivered record total revenue for the financial year of £283.5m, up 19.5 per cent on the previous year/

The marked growth of 11.8 per cent in the second half of the year partially reflected  the impact of the Omicron strain of Covid in the comparative period.

The company enjoyed a strong final 12 weeks of the financial year.

Loungers said the strength of its sales performance has enabled the business to manage the macro-economic backdrop.

As a result Loungers expect profits for the full year to be broadly in line with market expectations.

Last year the company opened 29 new sites,  24 Lounges, four Cosy Clubs and our first roadside site under our new Brightside brand.

Subsequent to the year end the company opened a further Lounge in Altrincham.

The new sites have traded well since opening and provide confidence as to the continuing strength of the pipeline.

Chief executive Nick Collins said: “We have once again delivered a truly stand-out performance over the year.

“Our sales have been exceptional with the mature estate trading 18 per cent ahead of pre-pandemic levels and seven per cent ahead of what was a really strong performance last year.

“We have progressed well with our accelerated site roll-out programme, opening 29 sites during the year which as a cohort are trading well above average.

“The property market continues to work in our favour and our pipeline of around 35 sites for next year is incredibly exciting with nine openings planned for the first quarter.

“The first site of our new roadside concept, Brightside, has opened well, and we look forward to opening the next two Brightside sites in the summer.

“For almost a decade now we have consistently out-performed the market as we strive to deliver better for our customers and our teams. The inflationary pressure across our supply chain looks to be easing, and our scale and continued growth have allowed us to mitigate much of the impact. We look forward to continued strong performance as we enter the current full year.”