Patty & Bun's Strategic Expansion Amid Financial Challenges
Posted by Emma on 22nd Jan 2024
Patty & Bun, a prominent name in the casual dining sector, remains committed to expanding its restaurant footprint despite experiencing a financial downturn. In its recent financial statements, the London-based burger chain reported a substantial loss, yet it persists in its growth strategy.
Images & Copyright belong to www.pattyandbun.co.uk
For the fiscal year ending November 27, 2022, Patty & Bun witnessed a significant 28.3% increase in sales, reaching £10.5 million, up from £8.2 million in 2021. This rise in turnover is attributed to enhanced operational efficiency, a boost in delivery sales, and the opening of four new locations.
However, the company recorded a loss of £2.2 million. As explained by the company, this loss is primarily due to the expenses incurred in launching new sites towards the end of the financial year. After factoring in pre-opening costs of £168,651, the loss before depreciation, interest, and tax stood at £1 million, a stark contrast to the profit of £352,115 seen in the previous year.
The founder of Patty & Bun, Joe Grossman, highlighted in the group's accounts that the brand's neighbourhood locations and delivery services have been performing robustly. This success is partly due to a shift in post-pandemic trading patterns, with less emphasis on city centre sites, which continue to trade effectively under current market conditions.
Grossman also mentioned the company's ongoing strategy to develop and expand the Patty & Bun brand. This includes exploring various complementary opportunities, such as delivery markets. Following the fiscal year, Patty & Bun initiated a Company Voluntary Arrangement (CVA) related to nearly £2 million, leading to the closure of two sites. Despite this, the group maintains a strong presence with eight restaurants - seven in London and one in Brighton - and two concessions within Swingers locations in the West End and the City.
Images & Copyright belong to www.pattyandbun.co.uk
Moreover, Patty & Bun is venturing into international markets, with plans to open its first overseas location in Dubai shortly.
In conclusion, Patty & Bun's journey exemplifies a bold approach to business growth, balancing expansion and operational challenges. The company's resilience in the face of financial adversities and its strategic moves towards new opportunities mark a notable chapter in the casual dining industry.
Images & Copyright belong to www.pattyandbun.co.uk