Fridays owner Hostmore reveals sales dip as cost-cutting plan continues
Hostmore told shareholders that total revenues slipped 1% over the 22 weeks to June 4.
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Your support makes all the difference.The parent firm of restaurant chain Fridays has revealed a slight dip in sales so far this year as customer spending continues to come under pressure.
Hostmore told shareholders on Wednesday that total revenues dipped 1% over the 22 weeks to June 4, over the same period last year. Meanwhile, like-for-like sales were down 3%.
The group runs 91 sites across the Fridays – which recently rebranded from TGI Fridays – and 63rd+1st brands.
Our focus continues to be on implementing organic growth initiatives and extending the lifetime value of our guests by adding further to the guest experience through our three pillars of quality, relevance and simplicity
The hospitality chain had seen total revenues increase by 2% over the first 16 weeks of the year.
It comes as the group continues to move forward with significant cost-cutting plans announced over the past two months.
In May, the company said a small number of head office and supply chain workers would be impacted by cost-saving initiatives designed to save the firm £4.1 million more each year, after the firm had already announced a £1.8 million-a-year savings programme.
On Wednesday, Hostmore told investors its earnings were already benefiting from the programme and added that “further opportunities for savings are being evaluated”.
Gavin Manson, chairman of Hostmore, said: “Our focus continues to be on implementing organic growth initiatives and extending the lifetime value of our guests by adding further to the guest experience through our three pillars of quality, relevance and simplicity.
With the revision to our capital allocation policy, to prioritise debt repayment and shareholder distributions, I am confident that this will ensure a reduction in net debt and an ongoing improvement in profitability
“This is expected to increase the number of annual repeat visits by our customers.
“With the revision to our capital allocation policy, to prioritise debt repayment and shareholder distributions, I am confident that this will ensure a reduction in net debt and an ongoing improvement in profitability.”
Mr Manson will step down from the company board later on Wednesday, as part of a leadership overhaul which has seen Julie McEwan appointed as chief executive of the group, following Robert B Cook’s departure in January.
Shares in the company were 1.1% higher after early trading.