BTG overcomes challenging market conditions

The Big Table Group (BTG), operator of Las Iguanas, Bella Italia, Café Rouge, Banana Tree and Amalfi, has revealed strong trading results in the face of challenging market conditions for the 12 months to 30 October 2022.

The group’s adjusted EBITDA was £12.9m, up £5.9m on the previous financial year, and full sales for the year were £206.2m – up from £142.1m in FY21. The group has excelled despite a difficult year for the sector at large, with businesses battling Omicron Covid restrictions, energy and food price inflation, the impact of the cost-of-living crisis and the end of reduced VAT and business rates concessions. In this same financial year, however, BTG's business grew from 149 to 163 sites. 

Strong start to 2023

The group has continued its encouraging performance in the first half (November 2022–April 2023) of the current financial year. Sales are up 9% year-on-year (excluding prior year VAT benefit).

BTG is owned by Epiris, which acquired the business to support and accelerate new site growth opportunities. It is one of the best-capitalised restaurant groups in the UK, with a strong cash balance and no external debt. 

Group CEO Alan Morgan comments: "Our full-year results to October 2022 paint a picture of a resilient, efficient business which has been able to withstand significant economic headwinds.

"Whilst we expect the wider hospitality sector to continue to be challenged in the short to medium term, we have a strong balance sheet and are not exposed to the increasing cost of debt that other operators in the sector may be facing. With our great range of brands targeting wide demographics and our national geographic spread, we remain confident that the group will navigate those challenges and take advantage of the longer-term opportunities we have to capitalise on demand for our growth brands, taking them to more guests in more locations."

Business investment

As part of a renewed focus on guest experience, almost £11.5m was invested in capital investment (capex) projects during the last financial year, including new sites, brand conversions and refurbishments. Key investments included four new Las Iguanas sites (Southampton, Ealing, Canterbury, Center Parcs Elveden), two new Bella Italia restaurants (Shaftesbury Avenue, London and Norwich Riverside), and the launch of the group’s second Amalfi restaurant in central London. There were also 13 major refurbishment projects during the year, in addition to minor refreshes and external terrace works.

Continued developments were also made during FY22 in technology, for both teams and guests. BTG continued the rollout of its mobile order platform, which enables guests to manage both order and payment at their table, and also tested robots at four sites during the year, which not only provided a point of difference but also enabled the group to test productivity benefits as team members are able to spend more time with guests, whilst their robot colleagues help to deliver the orders from the kitchen. Other initiatives included the rollout of cellar and fridge management systems, which reduce energy consumption.

In September 2022, the group acquired Pan-Asian street food concept Banana Tree. The addition of Asian cuisine provides a strategic fit with BTG's growth ambitions. Having identified a number of sites in its existing portfolio which could have a bigger upside operating under the Banana Tree brand, BTG has so far converted three sites – Covent Garden, the O2 Arena and Haywards Heath – with a fourth site in Reigate opening soon. These trial sites will help the group figure out future rollout options for Banana Tree.

The year also saw the Big Table Group trial a new pasta delivery concept, 'Super Nonna'. After a trial at five existing sites, the brand will be fully rolled out to more than 80 sites this summer. 

"We’re pleased with how we have started the 2023 financial year, in spite of the material disruption caused by railway strikes and continued rising inflation. Inflation will still have an impact, though we’re confident we will offset this, thanks to a lot of hard work we’ve already put in, working with suppliers, hedging our energy, and unlocking cost synergies," adds Morgan.

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