Various Eateries – trading in line with expectations, pursuing expansion plans ‘at measured pace’ given uncertain outlook: Various Eateries, the Coppa Club operator, has said sales in the first quarter of FY23 “were in line with management expectations” while market conditions are seeing “increasing number of high-quality sites becoming available at extremely attractive rates”. The business, which operates 15 sites under the Coppa Club, Tavolino and Noci concepts, said it was confident of delivering another year of continued progress despite the uncertain outlook for inflationary pressures and ongoing threat of negative impact of train strikes. It added it was growing its pipeline of high-quality sites and intended to pursue expansion plans at a measured pace. Its diverse mix of brands are “aligned to modern consumer needs” and chosen pricing points “leave us well-positioned to navigate a recessionary environment”. Various Eateries said its energy costs were hedged materially from a volume perspective through to summer 2025 while steps have been taken to manage margin pressures including a “comprehensive menu re-engineering exercise”. The company stated: “As we move through the second quarter, it remains difficult to predict with any certainty how this financial year will pan out. A mixed picture in October and November followed by a strong festive period didn’t offer a great deal in terms of themes and patterns, and it is still too early to draw any meaningful conclusions. Beyond Various Eateries, there doesn’t yet seem to be any real consensus in the industry about what to expect, with opinion divided as to whether inflation and interest rates will continue to rise, or whether the solid Christmas many retail businesses enjoyed represented something of a turning point. One thing that is certain is the negative impact of the ongoing train strikes on trading, particularly at our London sites. We saw evidence of this during the year under review and post-period end, and expect them to be detrimental as long as they continue. We shouldn’t let the current economic climate and prospect of further train strikes overshadow the progress we continue to make, and the potential of the group. Our focus for FY23 will be on continued delivery of our strategy. Regardless of what happens to inflation and demand in the short-term, we are building the group for the long-term, and will continue to make decisions, and take actions we believe will ensure sustainable, profitable growth and value creation for shareholders long into the future. We remain on track to open Coppa Club sites in Cardiff, Guildford and Farnham in 2023. A second site for Noci will also open during the year at Battersea Power Station. As we have maintained since initial public offering in September 2020, while it is sad to see our industry peers fall by the wayside, the increasing number of high-quality sites becoming available at extremely attractive rates presents us with a growing opportunity. Our three new publicly confirmed Coppa Club venues are a good illustration of this. It is very unlikely they would have become available had it not been for the pandemic, and certainly not with the lease terms and at the rates we have been able to secure them on. Similarly, we are seeing an influx of fully fitted restaurants coming to the market that fit the criteria for Noci at no premium, giving us excellent strategic flexibility over the rollout. Regarding reduced consumer spending, while obviously not immune to economic downturn, we expect the group to be a beneficiary of the emerging premiumisation trend. As disposable income reduces, we are seeing more and more people choosing quality over quantity and memorable experiences over the everyday. Our brands and venues, engineered around first-class food and destination venues at affordable prices, should continue to prove a popular choice.” It comes as the business reported revenue increased 82% to £40.7m for the 52 weeks ended 2 October 2022 (2021: £22.3m). Adjusted Ebitda was up 193% to £3.5m (2021: £1.2m). Pre-tax losses increased to £7.2m (2021: loss of £3.7m). The business had cash at bank of £9.4m (2021: £19.7m) and net debt of £3.3m (2021: net cash of £7.3m). For the last six months of the financial year (4 April to 2 October 2022), the Coppa estate achieved like-for-like growth of 1% compared with 2019. Its hotels delivered “a steady performance with high occupancy and room rates”. The performance of Tavolino “has also been in line with expectations” and since opening in March last year, Noci “has surpassed expectations both in terms of performance and profile across the capital”. Andy Bassadone, executive chairman of Various Eateries, said: “To have made the progress we have despite the widespread challenges we and many others in the sector have faced is testament to the hard work of our teams and the enduring appeal of our brands, even in times of economic uncertainty. There continues to be a complex picture of industry-wide pressures that make it difficult to predict exactly how the coming months will unfold. Nonetheless, we remain focused on executing our strategy, and are confident that we will emerge strongly once conditions improve.”