• Swindon & Wiltshire Retail
• Tuesday November 28 2023
• Author Name: Peter Davison

Revenues climb to £146 million at hospitality chain Loungers

Revenues at Bristol-based hospitality chain Loungers have increased by over 22 per cent to £146.6 million over the past six months, according to figures released today (Tuesday).

The firm – which includes The Lounge cafes, Cosy Club restaurants, and the Brightside roadside diner brands – also reported profits before tax of £3.9 million for the first half of the financial year – up from £2.8 million for same period last year.

Like-for-like sales were up 24 per cent on pre-Covid levels, the firm told investors.

The company said it had created 1,000 new jobs in 2023 – with the same number again anticipated in 2024 – and was on track to open 34 new sites by the end of the year.

The group is currently targeting having 600 Lounges and 65 Cosy Clubs around Britain.

The company said part of its strategy was to target locations that are typically outside city centres, and as a result the company estimates that one in eight of its jobs is in an area that the government wants to ‘level up’ by creating better opportunities and standards of living.

Of the 59 sites that Loungers has opened in the last two years, 39 per cent were former retail sites – including well-known high street names such as Boots, Waterstones, Argos, WH Smith, M&Co, Topshop and Currys -, 20 per cent were in brand new developments, 15 per cent were former restaurants – such as Prezzo, Jamie’s Italian and Bistrot Pierre – and 12 per cent were former banks.

CEO Nick Collins said: “We are proud of the positive impact that our Lounges have on the local community.

“Each new Lounge creates 30 new jobs on average, and each opening typically represents an investment of up to £1m into the local high street.

“Apart from the employment opportunities, there’s a wonderful halo effect created by having a vibrant, friendly, community-hub at the centre of a high street.

“The increased footfall is great for all of the other local businesses, and typically leads to other enterprises coming to the area too.”