Barburrito founder and chief executive Morgan Davies has told MCA the group is well-placed to weather cost pressures with a stable estate and positive trading figures.
Speaking after the group released its financial results for the year end 26 March 2017, which reported turnover up 25% to £12.8m, and a run rate of £15m, Davies said the group was continuing to perform well, despite tough trading in June and July.
He told MCA that the 21-strong Barburrito was well placed to continue expansion, with a business that was now starting to produce “decent numbers”.
Pre-tax losses narrowed to £2.6m compared with a loss of £3.1m the year before.
During the financial year covered by the results, Barburrito converted the five strong Scotland-based Pinto estate into Barburrito sites, while also opening two additional sites in Scotland, the Union Square shopping centre in Aberdeen, and Forrest Road in Edinburgh.
The British Growth Fund backed group has also refurbished and rebranded its estate, bar one site.
Davies said: “It’s a rocky period for the industry, but our core estate is performing well, and we continue produce decent like for likes. We’ve got a really good stable base
“We were the first burrito bar in the UK, and we wanted to set ourselves apart, and our think our brand shouts that.
“We’re well positioned for continued expansion, and more importantly we’re starting to produce decent numbers.
“Everyone is talking about costs pressures and uncertainty in demand, but we feel we’re in a strong and stable base for the rollout.
“Like for like trading continues to be positive, new openings are on track, and we have a run rate of £15m. We’re pretty happy with that.
He added: “June was tough, and July wasn’t much better, but we’re seeing an uplift in demand now
“We’re watching it closely, we’ve got a balanced estate between shopping centres, offices and retail.
“Last year was a year of change for us, so this year was about stability.”
