Manchester-based restaurant group San Carlo has posted a loss for the full year to 30 September 2018, of £133.7k, as market conditions and escalating costs ate into profits.
Its parent company Templeton Holdings reported that turnover had rise during the year to £53.9m – an increase of 8% (2017 - £49.9m). In its 2017 accounts the group reported a profit of £941k.
The loss was put down, in part, to investments in new sites, as well as “difficult trading continues due to Brexit, and large rent and rates increases”.
“However, the directors are confident that implementation of new processes and adapting to new market conditions will allow the business to return to profitability next year,” stated the report.
It said the group continued to look for opportunities to expand, both in the UK and globally.
During the year it added four additional sites, including the first San Carlo restaurant in London, on Regent Street.
Marcello Distefano, managing director of San Carlo Restaurants recently told MCA that potential new overseas sites would be coming up over the next 12 months in both Saudi Arabia and Qatar.
The group is planning open a pop-up Signor Sassi in Riyadh shortly with the intention of opening a full restaurant there next year.
Distefano said it was taking a more wait and see approach to the UK market.