Wagamama's Next Big Move: Plans to Open 60 New UK Locations
Posted by Emily on 5th Sep 2024
The Restaurant Group (TRG) has unveiled ambitious plans to significantly increase the number of Wagamama restaurants across the UK, setting a goal of reaching 200 to 220 locations in the coming years. Currently, there are 161 Wagamama sites across the country, but TRG is poised to open up to 60 more as part of a long-term growth strategy.
A recent trading update from TRG revealed that the Asian-inspired restaurant chain is already on course to open ten new restaurants within the UK this year alone. These openings will create approximately 500 jobs, reinforcing Wagamama's presence as a major player in the UK's casual dining scene.
2023 has been described by TRG's chief executive, Andy Hornby, as a "genuinely transformational year" for the business. This transformation followed TRG's £506 million sale to US-based private equity firm Apollo Global Management. The transaction marked a significant turning point for TRG, which had previously offloaded its struggling leisure arm – including well-known brands such as Chiquito and Frankie & Benny's – to the Big Table Group for £7.5 million.
Despite these shifts, TRG's core businesses have shown resilience and growth. Last year, Wagamama reported an 11% increase in like-for-like dine-in sales, while TRG's pub chain Brunning & Price saw a 10% rise. The company's concessions business, which operates in airports and travel hubs, recorded an impressive 29% boost in sales.
Regarding financial performance, TRG posted an operating profit of £29.8 million in 2023, excluding its leisure division. This represents a significant improvement from the £2.6 million operating profit the previous year. Meanwhile, pre-tax losses were reduced from £29.1 million in 2022 to £19.1 million in 2023, signalling a positive shift for the company.
Beyond the UK, TRG is also looking to expand Wagamama's presence internationally. The company has taken full ownership of its Wagamama operations in the United States and plans to grow the number of US locations to between 20 and 30 by the end of 2027. This international expansion extends to other markets, with 58 franchised sites operating across Europe and the Middle East. TRG anticipates opening three to five international sites in the second half of 2024, including Wagamama's first restaurant in India.
Despite the challenges posed by the broader economic environment in the UK, USA, and Europe, Hornby remains optimistic about the future. He expressed confidence in the potential for continued growth across Wagamama, Brunning & Price, and TRG Concessions in the years ahead.
As TRG pushes forward with these bold expansion plans, Wagamama's footprint is set to grow, bringing the brand to more locations across the UK and the world.
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