Loungers CEO Nick Collins has attributed the brand’s strong performance to its value proposition, a model that works across diverse locations, and a constantly evolving offer.
He was speaking to MCA following the Lounge and Cosy Club operator’s annual update, which saw it delivering like-for-like growth up 17.6% on pre-pandemic levels and record revenue of £285.3m for the year to April 2023.
“We’re continuously focused on the customer,” Collins says. “We’ve been determined over the last 18 months to continue to deliver for customers, and that’s resonated.
“Sales have continued to grow from a volume point of view as well…it’s not revolution, it’s constant evolution.”
With menus updated twice a year, he also revealed the new Lounge menu launched two weeks ago has received a strong response from customers.
“It’s one of the best menu changes we’ve done in years…the response really showed that,” he adds. “We like to challenge our food teams and ourselves. Fortunately we’re not wedded to any specific cuisines.”
Collins also said the upcoming summer will be an important period for Loungers, with the newly introduced Brightside brand entering its first summer and peak trading period.
The roadside dining concept opened in Exeter earlier this year, with new venues in Honiton and Saltash opening over the spring and summer.
“We see potential for 400 Lounges and 100 Cosy Clubs…I think the Loungers number is really conservative.
“From the Brightside point of view, it’s too early to talk about potential scale. By mid-July, we’ll be talking in more depth.”
The group’s estate currently numbers 222, with Collins highlighting the Lounge model as one that works across locations, whether market towns, coastal tourist spots, suburban high streets, or leisure retail schemes.
“We’re opening better and better sites, not specific to any type of location.”
Having opened 29 sites in FY23 and secured a pipeline of c35 for FY24, rapid expansion has helped Loungers mitigate some of the inflationary pressure on its supply chain by giving it negotiating power.
Seventy-five percent of the estate is hedged when it comes to utilities.
“We’re not immune to cost or wage inflation, but we’re serving more customers…we represent good value and provide great hospitality.”
