Tasty has announced which of its 54 branches it will be closing as part of a major restructuring plan.
The Wildwood and dim t operator announced earlier this week plans to exit around 20 loss making sites as part of a company restructuring to secure its long-term future. The company would enter a £750,000 loan agreement with Bet365 shareholder Will Roseff to fund the plans.
It has now revealed the closure of Wildwood Bicester, Birmingham, Brentwood, Cambridge, Chichester, Edinburgh, Kettering, Kingston, Ludlow, Market Harborough, Plymouth Derry’s Cross, Skipton, and Worcester.
Tasty will also close Dim T Loughton.
A spokesperson for the business said: ‘We understand the impact of these difficult decisions and but unfortunately, they represent the steps needed to navigate a path through the challenges which are prevalent in our industry specifically, and the economy in general.’
”In our pursuit of operational efficiency and long-term sustainability, we have decided to implement a restructuring plan. We are confident that the changes will ensure the long-term viability of the Company and will protect the employment of the majority of our staff.
“Our primary focus will be on optimising the performance of our remaining Wildwood and dim t restaurants and thereby securing the long-term viability and profitability of the Company.”
Before the announcement, Tasty operated 54 sites comprised of 43 Wildwood, 6 Dim-T branded sites, two non trading sites and three sub-let sites.
For the 53-week period ended 31 December 2023, the company expects to report revenue of approximately £46.9m, compared to£44.0m in 2022, alongside gross profit of £34.1m, compared to £31.4m in 2022, and an EBITDA loss of approximately £0.9m.
The business said that it had made reasonable progress since the year end and despite difficult recent trading conditions, management “continue to navigate through challenging times to mitigate cost rises and lower trading performance.”
“As previously reported, the cost-of-living crisis, transportation strikes, and interest rate rises continued to significantly impact FY23 revenue and inflationary pressure on labour, food and utilities continue to adversely affect profitability.
“It was added that financial performance has been inhibited by a tail of underperforming sites, despite efforts at improving operational performance”, the company added.
