Mowgli Street Food Reports Financial Loss Despite Rising Sales
Posted by Emma on 2nd May 2024
Nisha Katona, the renowned TV chef and entrepreneur, has witnessed her restaurant chain, Mowgli Street Food, dip into financial losses this year. Despite a proactive decision to maintain consumer-friendly pricing amid significant food inflation, the company reported a pre-tax loss of £476,000, compared to last year's profit of £1.9 million. The financial results for the year ending July 2023 showed a 15% increase in sales, totalling £30.9 million.
Nisha Katona, CC BY-SA 4.0, via Wikimedia Commons
Despite the losses, Mowgli Street Food demonstrated its resilience by adjusting for a £907,000 write-down related to the mothballing of some outlets initially set up before the pandemic, alongside various pre-opening and management expenses. This strategic decision led the private-equity-backed firm to post an adjusted profit of £3.8 million.
Nisha Katona, a judge on the BBC's "Great British Menu" and a regular chef on ITV's "This Morning," described the past 18 months as challenging, especially in managing cost pressures. Mowgli, which boasts 21 UK locations, aims to keep dining affordable. Katona emphasized the importance of accessibility, stating, "You're no good to anyone if a couple of teenagers can't come out and dine with their pocket money. Those diners are our future."
Looking ahead, Nisha Katona is optimistic about Mowgli Street Food's future. She notes the easing of inflation and is planning the expansion of Mowgli, including its first international locations in Dublin and potentially Jersey. Katona believes that dining out is increasingly seen as a necessity, a sentiment reflected in the robust weekend business her restaurants are experiencing despite quieter early weekdays.
What are your thoughts on Mowgli's strategy to manage pricing during inflationary times? Would maintaining lower prices benefit the chain in the long run? Please share your views in the comments below.