Tasty has said it expects to open around five to six new units this year, in a “measured expansion plan”, following a profit turnaround last year.
The operator of Wildwood and dim t restaurants reported that revenue has increased by 44% year-on-year to £34.9m in the 52 weeks to 26 December 2021, compared to £24.2m the previous year.
Tasty, which is currently trading from 50 or 54 restaurants, said the increased turnover was driven by strong sales post re-opening, despite a weaker trading period than anticipated over December, due to the impact of Omicron.
Adjusted EBIDTA (post IFRS 16), was £8m, compared to £2.7m in 2020, with profit after tax for the period of £1.2m, against a loss of £12.7m the previous year.
The business said that allowing for deferred HMRC payments, creditors and its bank loan, the group’s net cash position was approximately £6.8m at the year end.
Four of its Wildwood sites remain closed due to predicted poor trading conditions or labour shortages, with the group considered selling two or three of those sites, or re-gearing their leases to reflect current market conditions, chairman Keith Lassman said.
Tasty said the increased appetite for delivery and takeaway had benefited its dim t business in particular, and the group plans to capitalise on this by expanding its virtual brands and different formats in new locations to optimise growth.
“Having survived the pandemic and, now that the restrictions have been lifted, we are cautiously optimistic that we will be able to expand the estate and are rebuilding our operational and head-office structure to support this anticipated growth and property pipeline,” he added.
“During 2022 we expect to facilitate a measured expansion plan for a pipeline of five to six new units, however, any expansion will be at a steady pace as 2022 will not be without its challenges with labour shortages, food inflation, the ending of Government support in terms of reduced VAT and business rates and utility price volatility, impacting profitability.”
The business said that it was currently 5% short of the full employment levels required across its operations, but that the move to flexible working had helped it attract a new demographic and would provide them with new opportunities as it grows its talent pool.
It said targeted wage increases had been applied in order to help retain its teams in the long-run.
