Clapham House Group has seen an increase in turnover and profits despite the underperformance of its Tootsies chain
The group, which early this week said it would be scaling back its aggressive opening rate next year due to concerns over the economy, food price inflation and rent hikes also reiterated its belief its Gourmet Burger Kitchen brand would work nationally outside its London heartland.
David Page, executive chairman of Clapham House, said: “During the first six months of the year we have again seen an increase in profits and an acceleration of our opening programme for GBK, where returns continue to be excellent.
“The performance of the GBKs opened this year outside London underlines our confidence that this format can be rolled out nationally.”
Clapham said it would now be opening 18 restaurants next year rather than 20 to 25 as originally planned.
It said a sales shortfall at Tootsies had been exacerbated by recent poor sales at 11 shopping and leisure centre locations.
Turnover in the six months to 30 September was up 37% to £28.1m (2006: £20.6m). Pre tax profit increased 21% to £1.5m (2006: £1.2m).
Clapham House currently operates 90 restaurants, up from 72 at the start of the current financial year.
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By Chris Druce
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