The chief executive of Various Eateries has said the restaurant group is now running a “tighter” operation after seeing its profits dented by a rise in taxes and wage costs.
Mark Loughborough, who took over as chief executive in January, said increases in the minimum wage and employers’ national insurance contributions in April had cost the business £1.3m.
However, he said scheduling staff shifts around customer demand and hot summer weather had pushed the Coppa Club and Noci operator to record profitability.
Various Eateries’ EBITDA is expected to be at least £1.1m in the year ending 28 September 2025, compared to market expectations of £400,000.
Full-year revenue is expected to hit £52.4m, up 6% year-on-year.
It marks a turnaround for the business, which reported a pre-tax loss of £6.7m in the year ended October 2023.
Loughborough said his team were working to improve standards across the business by refining menus and improving serving speed and consistency.
He added: “The breadth of our offer remains one of our greatest strengths, giving us multiple levers for growth across dayparts, occasions and locations. That diversity, combined with disciplined execution, has allowed us to grow sales in a way that helps offset some cost and margin pressures.
“We are becoming a more efficient and resilient business while continuing to enhance the guest experience, which in turn is driving stronger conversion and more repeat visits. Against a backdrop that remains challenging, I am proud of the progress we are making. We will continue to raise the bar, running a tighter operation and delivering a better experience for everyone who walks through our doors.”
Various Eateries operates 20 venues across the UK.
Chancellor Rachel Reeves is facing pressure to address the impact of cost increases on the hospitality industry in the Autumn Statement on 26 November.
Image: 365 visuals / Shutterstock