The ability to provide a differentiated experience is key to a successful rollout, and one that Loungers is able to offer, according to analysts Berenberg.

In a note on the potential grow opportunities for the café, bar and restaurant operator, the analyst noted that investor concerns surrounding rollouts in the hospitality sector often focus on the pitfall suffered by casual dining brands in particular, but that doesn’t mean rollouts cannot be successful.

“There are some key distinctions to be drawn between Loungers and such brands,” it read. “Many casual dining brands have historically taken on unsustainable rent deals or properties in undesirable locations in pursuit of growth. For Loungers, with a rent-to-revenue ratio of c5.5%, discipline on rent has always been top priority.”

Secondly, unlike casual brands which tend to target a particular occasion or demographic, Loungers’ all-day offer gives it broad appeal, and means that sites are able to trade comfortably in a wide range of locations, including towns with populations as small as 12,000.

In an update to the stock exchange last week, Loungers announced that it would be reviving its existing run-rate of 25 openings a year in FY22, with a softening rental market meaning there were opportunities to acquire high-quality sites that would have previously been unaffordable. Berenberg said it was confident that the business could accelerate beyond this rate in the long-term.