Loungers eyes up expansion as profits hit £20.3m

An all-day café, bar and restaurant operator founded in Bristol has reported record results for the financial year (FY), with operating profits reaching £20.3m for the 12 months ending April 2024, up from £14.7m the previous year.

Loungers, owner of the Lounge, Cosy Club and Brightside brands has established 36 new outposts this FY alone, spurred by a 24.7% rise in revenue for the 53 weeks to 21 April to a record £353.4m. The pre-tax profit figure was up 56% at £11.4m. The group's national estate currently comprises 257 venues. 

A large portion of sites acquired by Loungers are former retail buildings, though the business has secured a number of former banks in recent months. In terms of expansion, the long-term goal of 665 restaurants across the UK is viewed as conservative by management. 

The company cites decreasing inflationary pressures and increasing scale as the forces that have allowed it to make "good progress" towards reaching pre-Covid margins. 

The rollout continues

Nick Collins (pictured), CEO of Loungers, comments: "This has been another year of outstanding strategic, operational and financial progress for Loungers. Our consistent and market-leading like-for-like sales growth coupled with our improving margins are allowing us to achieve record levels of profits to reinvest in our ambitious rollout programme.

"During the year, we opened 36 new sites, created 1,200 new jobs and invested around £39m in high streets and communities across the UK. We have demonstrated yet again that the hospitality sector is capable of making a really positive economic and social impact on parts of the country that are otherwise all-too-often overlooked. To encourage further investment, I would strongly urge the new government to address the wildly unfair tax burden that is shouldered by our industry."

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