Exclusive – Wasabi exploring franchise opportunities to accelerate growth as turnover rises to record £120.3m, ‘strong’ performance continues in 2024: Wasabi, the sushi and bento brand backed by Capdesia, has said it is exploring franchise opportunities to accelerate its growth as it reported its “strong” growth in 2023 has continued in 2024. Chief executive Henry Birts said the 41-strong business, whose sites are currently all company owned, had “managed challenging inflationary pressures well, balancing measured price increases with improvements in productivity, while maintaining excellent value for money for its customers”. It comes as Wasabi reported turnover increased 16.7% to a record £120,274,228 for the year ending 30 December 2023 compared with £103,058,835 the previous year. Ebitda climbed to £4,895,804 from minus £186,652 the year before. The group made a pre-tax profit of £7,706,734 compared with a loss of £10,061,544 the previous year. Birts said: “Wasabi UK had a strong overall performance in 2023, delivering significant sales, profit and margin growth across the group. The UK restaurant business saw healthy like-for-like sales growth versus 2022, driven by a strong performance in our travel hubs and office locations, and despite significant disruption due to rail and tube strikes throughout the year. The UK grocery business continued to see exceptional growth (46% versus 2022), driven by the successful launch of the range with Tesco in the fourth quarter of 2022 and continued excellent performance in Sainsbury’s. The strong performance of the UK business continued throughout 2024 with improvement in revenue, Ebitda and margin performance, aided by successful grocery launches in Co-Op and Morrisons.” Birts said that Wasabi had continued to invest in the core business, more specifically in restaurant refurbishments, factory automation and IT infrastructure, having also launched a loyalty app in September 2024. He added: “The Wasabi US restaurant business delivered positive Ebitda in 2023 (three sites in New York City) despite a slower sales recovery post-covid due to the shift to working from home. We are pleased with our 2024 performance thus far and reopened our highest sales unit in Penn Station in July, which is performing ahead of expectations. This profitable base gives us a strong platform for future growth in the US. The company is well advanced in building a strong pipeline for new restaurants in the UK and US in 2025 and is exploring opportunities to work with franchise partners in both geographies to accelerate this growth.” Wasabi features in the Premium Club Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 1,039 companies. Wasabi’s turnover of £120,274,228 is the 96th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

East Sussex McDonald's franchisee narrows losses despite ‘significant’ cost pressures as turnover rises to record £40.8m: East Sussex McDonald's franchisee DNP Restaurants has reported turnover increased 16% to a record £40,771,348 for the year ending 31 December 2023 compared with £35,040,710 the previous year. The business, which operates eight restaurants and employs almost 1,200 staff, saw pre-tax losses narrow to £310,482 from £813,524 the year before despite “significant” cost pressures. In his report accompanying the accounts, franchisee David Padmore stated: “Despite an increase in turnover, significant cost pressures have led to a fall in margins and reduction in operating profits. The re-imagining strategy continued to have a positive impact on sales growth. Sales through digital channels, including McDelivery, mobile app and self-order kiosks have increased during the year. Higher levels of pricing have been introduced to contract food cost inflation, which slowly declined through the year.” A dividend of £200,000 was paid (2022: £800,000). Padmore became a McDonald’s franchisee in 2006.

Edinburgh hotel and restaurant group undergoes further restructuring after falling to loss, shuts three restaurants: Edinburgh hotel and restaurant operator CSG Commercial has undergone a further restructuring after falling to a loss. The group, led by Christopher Stewart and which also has a property development portfolio, has also closed two of the sites that operated under its Bon Vivant restaurant division portfolio “as we focus on more profitable venues”. The group has shut its El Cartel restaurants in Roxborough Court and Teviot Place and Bacchus & Liber in Thistle Street, leaving it with a five-strong portfolio. As part of the restructuring, The group refinanced its loan with OakNorth and entered into an £8m development loan facility with RBS. It comes as the group reported turnover increased 7% to £14,771,486 for the year ending 30 June 2023 compared with £13,796,972 the previous year. The company posted a pre-tax loss of £1,028,667 compared with a profit of £267,074 the year before. The 2023 figure included £8,226,686 from food and beverage sales (2022: £7,447,176), £3,211,130 from room sales and guest services (2022: £3,503,042) and £1,919,833 from property management and consultancy services (2022: £1,945,349). Rooms sold fell to 9,708 from 12,719, with average room rate up to £319.22 from £264.88. Occupancy rates rose to 70.85% from 69.69%, with revpar up to £226.15 from £184.61. In their report accompanying the accounts, the directors stated: “Despite revenue increasing, margins across the group continued to be squeezed and a one-off impairment of circa £1m in one of the development projects contributed to an overall group operating loss of £337,241.The restaurant's sub-group (Bon Vivant) remained open for the full year, though inflation and the cost-of-living crisis continued to squeeze margins and affect trade. Strict cost control measures continued to be enforced to minimise the impact on the bottom line. After the year end, a strategic review led to the closure of certain restaurant units.” The company, which employs around 200 staff, did not receive any government grants (2022: £157,044). No dividends were paid (2022: nil).