Azzurri Group has reported results for year to 2 June 2023, with strong like-for-like revenue growth delivered across Ask Italian, Zizzi and Coco di Mama.
The group’s 200+ estate achieved revenue of £257.8m, up £21.9m on 2022, supported by “record levels of investment” into its brands.
The ASK Italian and Zizzi operator reported an operating loss of £3.5m compared to a profit of £5.7m in 2022. EBITDA was £14.3m for the period, a 22% increase on 2022.
“This has been supported by a record level of investment into our brands with £22.2m of capital investment being made this year”, said chairman, Harvey Smyth.
“The resulting strong trading performance by our brands saw both year on-year volume and spend per head increases contributing to an 9.3% increase in revenues to £258m for the year and Ask Italian and Zizzi taking market share,” Smyth added.
Smyth said this had been complemented by the acquisition of the Mexican, fast casual operator, Boojum in June 2023.
Azzurri will bring Irish-born Boojum to Great Britain “in the coming months” with the first site secured and scheduled to open in early 2024.
Smyth added: “The acquisition marks a significant landmark in the development of the Azzurri strategy of investing in growth businesses that fit with our acquisition criteria of multi-channel with an established footprint where Azzurri can support the continued growth of these businesses through the resources of our platform.”
During the year, the group opened six new restaurants (four in Zizzi and two in Coco di mama), transformed 23 sites and said “we continue to believe that the record level of investment will benefit our brands in the years ahead.”
It brings the Zizzi estate to 133 restaurants across the UK and Ireland. The year also saw the launch of the brand’s “Zillionaires Club” with membership for the loyalty programme ahead of target since its launch in October.
The company said that Zizzi had successfully embraced an omni-channel approach to “cater to the evolving needs and preferences of customers”.
In supermarkets, the frozen pizza and ready meal retail offer, has seen volumes and profits ahead of the prior year in like for like retailers.
Meanwhile, Coco di Mama has continued its strategic transformation shift from a London centric ‘Food to Go’ led business towards being a nationwide omnichannel Italian one.
The business has developed further presence in the travel sector through both roadside and rail partnerships, expanded a retail partnership with Sainsbury’s and opened the first regional store trial in Reading with a view to informing a future rollout beyond London.
Furthermore, a “record amount” has been invested in continuing to develop a proprietary technology platform, offering brands the ability to offer customers an improved experience.
Despite a challenged macro environment, Symth said that the UK consumer had proven to be more resilient than many had feared.
“Although confidence levels in UK consumers appear to be rising and cost of living pressures dissipating slightly, we remain cautious about the coming 12 months whilst we will continue to invest in our brands and innovate in our customer proposition and experience.”
“As the wider economic environment improves, both Azzurri and its brands are well placed to take advantage of the opportunities that will arise.”
“The year has seen an enormous amount of positive change and innovation for our businesses, which our management and restaurant teams have delivered brilliantly and for which they deserve a huge amount of thanks and credit. We look forward to building on this during the year ahead.”
