Itsu has reported revenue within its restaurant estate increased to £58.7m, in the year to 30 December 2021, from £41.4m in 2020.
Itsu Limited – which comprises its UK restaurants and takeaway shops and the wholesale of its Itsu branded products – said that despite the impact from the majority of its shops being closed in the first quarter of last year it achieved like-for-like store sales growth of 140% on 2020 levels.
Shop sales in H2 2022 are expected to match 2019 sales on a like-for-like basis, “a significant achievement for a company who customer base was predominately office focused in 2019”.
Adjusted EBITDA grew by 161%, up from -£5.7m in FY2020, to +£3.5m, which Itsu said was mainly down to the significant decrease in operating losses for the year. However, the business still reported a loss after tax of (£6.8m), down from (£18.7m) in 2020, as published in its latest accounts filed at Companies House.
Group turnover, incorporating its retail and grocery business, rose from £61.7m, to £86.5m over (+40.2%), over the same period.
Itsu Grocery increased revenue from £21m in 2020, to £29.1m in FY21, driven by distribution gains, increased penetration of its frozen range and new listings, among other factors.
The company said it was clear that the cycle of lockdowns and restrictions has impacted consumer behaviour, with more people adopting flexible working arrangements, which impacted Itsu’s London worker-focused sites. However, Itsu said the changes did provide new opportunities in shops in suburban areas and towns.
“Footfall during the week in these locations is now greater than it was pre-Covid,” read the strategic report.
Itsu said it had continued to develop and re-shape its business in the context of these shifts. The focus on its shop estate will be on regional and international shop expansion, “with careful management of the West End and City estate”.
The delivery channel also makes up a greater proportion of sales – over 20% at the time the accounts were filed, with the business having developed its hot range in order to cater for the needs of this channel.
“Another important development during the pandemic has been the introduction of customer facing touch screen kiosks. These are now being rolled out across the estate because they are easier to use, save labour and increase the transaction size.”
The business resumed its new shop opening programme in the second half of 2021, focusing on regional towns and shopping centres, with several sites opening in partnership with franchisees, which Itsu said it believed would accelerate its growth in the future.
“The directors are confident that the decisions taken during the pandemic will ensure that Itsu’s shops have a great future.”
In 2021 the business renegotiated and extended its current banking facility of £10m, until the end of 2022 – which extends it beyond the end of the CVA period, giving it further security, it said.
Ganan Kanagathurai, UK CEO for Itsu, will be presenting at MCA publisher William Reed’s new Omnichannel Foodservice Conference on 9 November.
Taking place at The Pullman London St Pancras, the event will include exclusive insight sessions and leader interviews with best-in-class exponents of an omnichannel approach.
In an exclusive presentation, Kanagathurai will discuss Itsu’s journey as a brand at the forefront of expanding into new sales channels, spanning mobile and kiosk ordering, delivery, e-commerce, and retail, with Itsu Grocery now being a £50m business.
He will be joined at the conference by a line-up of industry leaders, including Glenn Edwards and Ashley Davis, joint MDs for Leon; YO! CEO Richard Hodgson; and Pret a Manger’s interim MD, Guy Meakin.
For tickets and more information, please click here.
