Loungers Nears 300 Locations as It Outperforms UK Hospitality Market
Posted by Emma on 10th Oct 2024
Loungers, the all-day café and restaurant group, has reported continued growth, outperforming the wider UK hospitality market. In a trading update for the 24 weeks ending 6 October 2024, the company announced a 4.7% rise in like-for-like sales (LFL). Total revenue reached £178.3 million, marking a 19.2% increase compared to last year when revenue stood at £149.6 million.
The group, which operates popular brands such as Lounge, Cosy Club, and Brightside, remains focused on returning to its pre-pandemic EBITDA margin target of 13.5%. Loungers also reported a healthy balance sheet, with non-property net debt reduced to £12.2 million, down from £14.3 million in October 2023.
As of early October 2024, Loungers had 273 sites in its portfolio, with plans to open an additional 18 locations in the next six months. This expansion follows a busy year, with the group launching 37 new sites in the past 12 months, including 17 in the latest trading period.
Loungers CEO Nick Collins expressed satisfaction with the company’s performance, highlighting the strong growth of both mature locations and new openings. One standout example is the Ritorno Lounge in Bristol, which opened in July and achieved the most successful start of any site in the group’s 22-year history. Collins noted the significance of this accomplishment, as Bristol is where the Lounger's journey began.
Collins also emphasised the growing confidence among UK consumers, who are increasingly eager to dine out at various times of the day. He attributed the company’s sustained sales success to its versatile and broad offering, which resonates with the current market demand.
Loungers had reported a record year in July 2024, with annual revenue climbing by 24.7% to £353.5 million. Adjusted EBITDA also saw substantial growth, rising 25.9% to £59.6 million for the 53 weeks ending 21 April 2024.
As Loungers approaches the 300-site milestone, its consistent growth and expansion across the UK suggest a bright future for the company in the competitive hospitality sector.