Itsu Expands as Losses Deepen Despite Turnover Growth
Posted by Emma on 8th Sep 2025 Reading Time:
Itsu, the Asian-inspired quick-service chain, has reported widening losses despite an uplift in sales.
For the 53 weeks ending 2 January 2025, the group posted turnover of £120 million, a 3.7% increase on the previous year’s £116 million. Much of this growth came in the latter half of 2024, when transactions rose notably.
While gross margins edged up by 0.9%, higher property costs and investment in the Itsu Academy—its dedicated staff training hub—pushed earnings before interest, tax, depreciation and amortisation (EBITDA) down from £5.4 million to £3.9 million. Pre-tax losses widened from £4.3 million to £6.7 million.
Expansion Amid Pressure
Despite these figures, Itsu has not slowed its expansion drive. New restaurants opened on Oxford Street, Bond Street, and in the City of London, alongside a flagship site in Manchester’s Trafford Centre. The company has also pledged to add more outlets in high-footfall areas, capitalising on the steady return of office workers.
Looking beyond the UK, Itsu is exploring franchise opportunities across European airports, railway stations and retail parks. The chain is also building on health-focused partnerships, following the success of its tie-up with global insurer Vitality.
Customer Focus in Challenging Times
In its accounts, the directors stressed that affordability and customer experience were central to Itsu’s strategy in 2024. A refreshed loyalty campaign drove a surge in app transactions, while the introduction of lower-priced menu items helped cushion customers facing cost-of-living pressures.
Looking Ahead
Founded in 1997 by Julian Metcalfe, Itsu continues to balance investment with ambition. In December 2024, the brand entered sports catering after securing a deal to serve sushi at Arsenal’s Emirates Stadium.
The figures highlight a familiar challenge in the hospitality sector: balancing expansion and customer demand against rising costs. Itsu’s gamble lies in whether continued growth and a focus on value will eventually turn its investment-heavy strategy into profit.