Wingstop master franchise Lemon Pepper Holdings achieved like-for-like sales growth of 49% in 2023 (January – November).
The 37-strong business has been able to maintain profitable growth across its estate, despite macro headwinds on inflation, utilities, labour and cost of sales.
In accounts for 2023, the directors cite strong growth prospects in the premium chicken market, and an ambition aim to reach 50 sites by end of 2024.
During the year to 26 March 2023, revenues increased by 78% to £38.1m (2022: £21.4m) driven by estate expansion and LFL growth of 19%.
Site EBITDA increased to £4.2m, up from £4m in 2022 which was benefited by the reduced VAT rate.
Group operating profit fell to a loss of £1.5m, driven by the substantial investment made in central support function, with five new hires, on top of store-level and pre-opening costs of 13 new stores during the period.
The group made a loss for the period of £2m.
At the balance sheet date, the company had gross assets of £18.3m (2022: £10.8m).
The business was founded by Tom Grogan, Saul Lewin, Herman Sahota and Paddy Bamford in 2018, who acquired the UK master franchise for the wings brand.
The brand made its UK debuted in Cambridge Circus, and grew to 31 stores at the year-end (2022: 18).
Since the end of the accounting period, six new sites have opened.
