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​Record-Breaking Year for Loungers: Revenue, Profit, and Expansion Soar

​Record-Breaking Year for Loungers: Revenue, Profit, and Expansion Soar

Posted by Emily on 10th Jul 2024

Loungers has reported a remarkable year of growth and expansion. The company announced a significant increase in group revenue, reaching £353.5 million, marking a 24.7% rise compared to the previous year.

The financial success of Loungers is further highlighted by a 56% surge in pre-tax profit, amounting to £11.4 million for the 53 weeks ending on 21 April 2024. Adjusted EBITDA also saw an impressive increase, climbing to £59.6 million from the previous £47.3 million.

Founded in 2002, Loungers now operates 264 sites nationwide. In the past year alone, the company opened a record 36 new locations. This expansion included 33 new Lounges, one Cosy Club restaurant, and two Brightside roadside dining concepts. However, one Cosy Club in Harrogate was closed during this period.

The new site openings have led to the creation of 1,200 jobs, bringing the total workforce to 9,000. Over the last year, these employees served an impressive seven million breakfasts and six million pints, reflecting the company's robust customer engagement.

The company's growth strategy suggests that its target of 665 sites across the UK is "conservative." Nick Collins, CEO of Loungers, emphasised the significant progress made by the business, stating, "This has been another year of outstanding strategic, operational and financial progress for Loungers. Our consistent and market-leading like-for-like sales growth and our improving margins allow us to achieve record profits to reinvest in our ambitious roll-out programme."

Collins also highlighted the hospitality sector's positive economic and social impact, urging the government to address the industry's unfair tax burden through an overhaul of the business rates system. Given the improving macroeconomic environment with falling interest rates and declining inflation, he expressed confidence in Loungers' trading prospects.

Chairman Alex Reilley added to the optimistic outlook, noting the importance of the company's multi-brand strategy. He stated, "Whilst Lounge continues to be the dominant driving force behind our growth, it is important that the other two brands don't live in its shadow. We are an infinitely better business because we have more than one brand. It means that we must look at a much wider spectrum of hospitality and cannot fall into the trap of becoming too set in our ways."

Reilley explained that the brands constantly learn from each other, benefiting from a larger executive team with diverse perspectives and experiences.

Since the end of the financial year, Loungers has continued to thrive, with like-for-like sales up by 5% and seven additional Lounges opened in the following 11 weeks.

Loungers has strengthened its senior leadership team to support its ongoing growth. Justin Carter was promoted to group managing director of all three brands. David Matthews became Lounge operations director (North), and Kate Eastwood joined from Fullers as Lounge managing director.