Speaking to BigHospitality, Kaye said the group intends to open between 20 and 30 new sites this year, with similar expansion in coming years if “all goes well in the market”.
“We always react to the times. For example, when the recession hit we stopped expanding, but then we started again slowly in 2009. Last year was a big year, and this year will be even bigger.”
Food price increases
“The market seems to be OK now, sales are holding out. I’m not concerned about revenue, my concern is with margins, as a result of the food price increases.”
Kaye said Prezzo will “most definitely” have to increase its prices moving forward, with menu price increases likely to remain single digit.
“Prices are always going up. It’s the norm of the business. I can see the competition are already increasing their prices. The reality is that it’s a necessity, we have no other option. It’s always a bit of a concern, but I’m absolutely focused on us remaining a value proposition,” he told BigHospitality.
Prezzo expansion
Prezzo currently has around 170 restaurants across the country, with more expansion planned throughout the year. Just yesterday, the group opened a new site in Plymouth, with further openings this year in Scotland, Ryegate and Cantebury.
Prezzo also recently purchased its 16th restaurant in Essex, located in a former Enterprise inns site found by property agent Selsian.
Kaye said there is also further expansion slated for its other trading brands – the Mexican concept Chimichanga, as well as the newly acquired Caffe Uno.
“We’ve just opened our 12th Chimichanga unit, and we’re also looking at developing Caffe Uno, which still only has two sites. But I don’t put them in the same bracket; we’re looking to open a handful of sites each year for Chimichanga, but Caffe Uno is still an unknown.”