Café Rouge owner plans ambitious expansion off the back of strong sales

Restaurant operator Tragus plans to double the size of its Café Rouge estate and develop a third core brand off the back of surging sales.

Reporting full-year sales to 28 May, Tragus said turnover had increased 11.1% to £130m thanks to sales growth at its existing 160-strong estate and 12 new openings.

Earnings before interest, tax, depreciation and amortisation – a measure of a company’s underlying profitability – leapt 32% to £22m.

Tragus also launched its new Spanish tapas bar and cantina brand, Ortega, today, which it plans to develop with another three units before assessing whether to roll it out as a third core brand.

Tragus chief executive Graham Turner said: “2006 has been a year of considerable progress for our group, with a successful refinancing and our Café Rouge and Bella Italia brands performing well.”

Since the year end the operator has opened a Café Rouge in Sheffield and has new Café Rouge and Bella Italia sites planned in Manchester, Exeter, Milton Keynes, Lakeside, Essex and Camberley, Surrey.

Turner believes the market will support a doubling of the 85-strong Café Rouge estate, the company’s major brand.

In May, Tragus completed a £138m refinancing deal.

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By Chris Druce

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