‘Brand love remains strong’ at Wahaca

Wahaca CEO Mark Selby remains positive about the brand despite a difficult year, with a focus on being “the UK’s most sustainable restaurant businesses”.

He said the business was “in the best shape possible” to recover swiftly when allowed to fully reopen.

Selby was speaking following the filing of the accounts covering the year to 28 June 2020, which detailed the pandemic’s severe negative impact on trading.

Turnover for the year to 28 June 2020 was £34.7m (2019: £50.0m). The company recorded a net loss before tax of £17.0m (2019: £4.2m), with net liabilities of £29.0m (2019: £11.7m).

In October 2020, Wahaca entered into a Company Voluntary Agreement (CVA), which led to 12 of its sites closing, and an impairment charge of £8.1m. In November 2020, Wahaca was acquired in a rescue deal by the billionaire owner of Nando’s, Dick Enthoven.

In the accounts, the company said “brand love and recognition remain very strong,” noting that Wahaca was voted London’s Favourite Restaurant Brand by a YouGov poll at the end of 2019. The company is currently trading out of 13 locations, predominately in London and has developed, “a strong delivery channel”.

“The recovery will be relatively swift once restaurants are allowed to fully reopen,” it continues, as it believes, “its menu offering good value for money will place it in a strong position relative to its peers.”

“We believe that by focusing on looking after and investing in our people, the quality and sustainability of our products and customer service that the Wahaca concept offers customers a unique experience that in the long run gives us a competitive advantage.”

Selby told MCA: “During the months of enforced closure, we continued our focus and investment into being one of the UK’s most sustainable restaurant businesses. The business is in the best shape possible to help us recover swiftly and progress once restaurants are allowed to fully reopen.”