Loungers, the owner of the popular café and bar chain Cosy Club, has announced plans to open 18 new sites across the UK over the next six months, reflecting robust sales growth.
- The Bristol-based company, which currently operates 273 outlets nationwide, recorded a year-on-year like-for-like sales growth of 4.7%.
- In the 24 weeks leading up to October 6, Loungers reported a substantial revenue rise to £178.3 million, marking a 19.2% increase from the previous year.
- The firm is making significant strides towards its ambition of reinstating a pre-COVID EBITDA margin of 13.5%, aided by reducing net debt.
- The recent opening of the Ritorno Lounge in Bristol stands out as the group’s best-performing new site in its 22-year history.
Loungers, renowned for its Cosy Club café bars, is in the midst of a substantial expansion plan, aiming to establish 18 new sites across the United Kingdom in the forthcoming six months. This initiative underscores the company’s sustained sales momentum and expansion strategy. Currently, Loungers operates an impressive total of 273 outlets under its Lounge, Cosy Club, and Brightside brands across the nation. The firm’s announcement aligns with its reported like-for-like sales growth of 4.7% compared to the prior year, showcasing its resilience and adaptability in the competitive UK hospitality sector.
In a recent trading update for the 24 weeks ending October 6, Loungers revealed a remarkable revenue achievement, reaching £178.3 million. This represents a 19.2% increase over the previous year, a testament to the company’s strategic initiatives and market positioning. Despite the challenges posed by the wider economic environment, Loungers is making substantial progress towards achieving its target of restoring a pre-pandemic EBITDA margin of 13.5%. Moreover, the company’s non-property net debt has notably decreased to £12.2 million from £14.3 million in the same month in the previous year, reflecting its commitment to financial prudence and stability.
The Ritorno Lounge, one of the newest additions to the Loungers portfolio, opened its doors on Bristol’s harbourside in July. This venue has swiftly emerged as the strongest start for any new establishment in the group’s history, a testament to the brand’s enduring appeal and effective market engagement strategies. Loungers’ Chief Executive, Nick Collins, conveyed his satisfaction with the company’s achievements, attributing their success to the relentless efforts and professionalism of their dedicated teams. He highlighted the Ritorno Lounge’s opening as the most successful site launch within their 22-year journey, which began in Bristol.
Collins observed that UK consumers are currently exhibiting growing confidence and a desire to ‘go out and enjoy themselves,’ contributing positively to the brand’s sales performance. This consumer sentiment is harmonising with Loungers’ expansive and adaptable all-day offerings, driving continued success in the hospitality market. Previously, in July, Loungers posted record results for the last fiscal year, during which they inaugurated 36 additional sites across the UK. For the financial year ending in April 2024, the company reported operating profits escalating to £20.3 million, compared to £14.7 million in the preceding year.
Loungers continues to demonstrate its growth and market strength, making significant strides in expansion and financial performance.
