Food and Drink Group admits to being ‘sub-scale’

Henry J Beans operator Food and Drink Group could be sold or merged with a larger rival after a prolonged sales dip at the end of 2007.

The London-based group is actively looking for an investment partner to increase the number of sites it operates and improve the efficiency of the business and its buying power.

It has put non-essential capital expenditure on hold and is taking action to improve the performance of its 33 mainly City-based bars, which operate under the Jamies banner.

In delayed results for the year-ending 29 September 2007, Food and Drink Group said trade had become more challenging as the year progressed.

The company said last summer’s poor weather had hit it hard, limiting its ability to use its venue’s outside trading space.

James Kowzun, chief executive at The Food and Drink Group, told Caterersearch: “I think we are in a more uncertain world and trade is more difficult than it has been in the past. However, my customer base of educated urbanites is a resilient customer base.”

Overall turnover rose 2.4% to £20.8m while pre-tax profit fell by a third to £600,000.

The Group delayed the reporting of its results due to its financial director being placed on compassionate leave.

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By Christopher Walton

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