Clapham House, the casual dining group, this morning said it expects to report results for the year in line with market expectations and comfortably ahead of those reported for the previous year.
The owner and operator of Gourmet Burger Kitchen (GBK), The Bombay
Bicycle Club (BBC), The Real Greek (TRG) and Tootsies, was updating the market in advance of the release of its preliminary results for the year to 30 March 2008.
It said GBK has continued to deliver good sales performance and excellent returns on
capital invested. The firm opened has opened two GBK restaurants to date in 2008 in Cardiff and Didsbury, both of which have commenced trading “very strongly”.
This brings the total number of GBK sites in the UK to 43, of which 26 are within Greater London. The firm said it is convinced of the brand's national roll-out potential to at least UK 150 restaurants.
Recent initiatives at Tootsies, including the introduction of new menus, were said to have been received, and the group's refurbished high street estate was said to be showing improved sales performance.
Trading at Tootsies in retail and leisure centres is showing some signs of stabilising, the firm said.
Clapham House plans to expand all of its businesses in the next financial year “at rates
appropriate for their stages of development and the current economic climate”. In
particular, it will continue to focus on the growth of GBK both directly in the UK and under franchise internationally.
The company has also exchanged contracts on 10 UK properties for the financial year to
March 2009, comprising seven GBKs, two TRGs and one BBC. These are expected to include
the two delayed properties at Spitalfields Market. Internationally, it expect its partners
to open at least five GBK restaurants under franchise during the financial year.
Clapham House said it has signed a contract which should result in the opening of the first Tootsies restaurant in a UK regional airport in 2008. This will be operated under franchise and represents a further development of the Tootsies business model.
The firm said: “We are confident that our expansion plans for the next financial year are
appropriate for current market conditions. Despite our expectation that conditions will remain tough, we plan to continue to grow our business over the next 12 months.”
