The Restaurant Group, the operator of 354 restaurants and pubs including the Frankie & Benny’s chain, has reported a 3% fall in like-for-like sales for the first 18 weeks of 2009 compared to the previous year.
The company said that its concessions division had been impacted by the significant decline in passenger numbers at many of its airport locations, resulting in a drop in revenues.
In a trading update prior to its AGM,, the group said that the pattern of trade in its leisure division had remained reasonably stable for the first four months of the year.
LFLs dropped 2.5% during the first nine weeks of 2009 compared with the previous year.
It reported that the group’s margins and profits were running at a level in line with management’s expectations and that there had been no significant changes in its net debt position since the end of the year.
TRG opened six new sites to date in 2009 and expects to launch a further 15 to 20 new units this year.
It said: “The UK economic backdrop remains difficult and consumer confidence is not being helped by rising unemployment levels. However, for the vast majority of people who remain in work, lower interest rates and lower fuel and other costs are a positive. Overall we believe that conditions for consumer-facing businesses will continue to be challenging for some time.
“The group's focus is directed towards delivering good value and hospitality to our customers with the objective of driving consistent returns and cashflows from our existing business.
“We are seeing strong performances from recently opened restaurants and will continue with our strategy of rolling-out the group's brands on a carefully targeted basis.
“TRG's resilient market positioning, strong brands and professional and motivated teams will continue to benefit the company during these demanding economic times.”
