UK- Restaurant chain operator The Restaurant Group (TRG) has revealed plans to significantly expand its presence in the UK by opening 8-10 outlets of its flagship restaurant, the pan-Asian-themed Wagamana, by the end of 2024.
The plans were announced during the operator’s latest trading update. TRG opened 6 new locations in the UK in the 2023 financial year.
The announcement is part of TRG’s long term strategy of scaling up Wagamana’s presence in the UK, targeting 200 to 220 new outlets, a significant increase from the 161 locations operated at the end of the 2023 financial year.
According to the operator, the expansion plan was inspired by positive financial performance.
In the financial year ending December 31, 2023, Wagamama sales increased by 11%, which was attributed to a significant increase in done-in like-for-like sales. TRG suggests this performance reflects increased customer interest and loyalty to the brand.
The performance is especially impressive at a time when many restaurant brands are struggling with diminished demand and mixed-to-poor performance attributed to inflation cost pressures.
The cost of raw materials and key ingredients has significantly increased, causing an increase in prices. This price increase has stifled demand.
TRG’s other brands, Brunning & Price pubs and its concessions business, also saw rises of 10% and 29%, respectively, in the 2023 financial year.
The expansion plan is also expected to include its Wagamana outlets in North America and Asia.
The operator also announced plans of taking full ownership of its Wagamana operations in the US. TRG revealed plans of expanding to 20 to 30 outlets in the US by 2027.
TRG revealed opening 3-5 more locations in Asia by the end of 2024, which will include its first outlet in India.
Andy Hornby, TRG’s Group CEO, said, “2023 was a genuinely transformational year for TRG. We traded strongly throughout the year thanks to the phenomenal efforts of our restaurant and pub teams.”
“We completed the post-Covid re-shaping of the business with the divestment of our leisure division to Big Table Group. Finally, the acquisition of TRG by a shareholder with the scale and expertise of Apollo marks a hugely exciting new chapter for the business.”
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