Wildwood restaurant owner Tasty notes 'disappointing' festive sales
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The owner of Wildwood restaurants said sales were 'disappointing' in the lead-up to Christmas, after it underwent a restructure in the hope of reviving its fortunes. Hospitality group Tasty, which also owns the dim sum chain Dim T, said it continued to uphold a 'cautious outlook' while the casual dining sector endures 'several adverse factors.'.
These include food cost inflation and declining consumer confidence and discretionary spending, as well as national insurance and living wage changes unveiled in the Government's October Budget. Tasty shut 14 sites and made about 160 people redundant during the first six months of 2024 as part of a restructuring aimed at reviving its profitability.
Consequently, its turnover fell by 12 per cent to £19.1million, although it recovered to a £13.4million pre-tax profit after making a £6.2million loss in the same period last year. Under the restructuring plan, Tasty hopes to make savings in its head office of around £600,000 per year and improve its underlying earnings before nasties by £2.1million up to 2025.
Festive trade: Wildwood restaurant chain owner Tasty reported its sales were 'disappointing' in the weeks preceding Christmas. In addition, the group expects to make £33.4million in revenue, generate £1.3million in cash, and rebound to a £1.2million profit this financial year.
Tasty also said it had gained a settlement from its insurer worth £2.5million, or about £1.5million after creditor and legal costs. The settlement related to a claim for losses deriving from a breach of an insurance contract in 2020 when hospitality operators suffered severe restrictions on trading due to the Covid-19 pandemic.
