Richoux Group plans two new openings as restaurant disposals deliver profits

The London-based company recorded turnover of more than £5m in the 28 weeks to 8 July which resulted in a profit of £390k after suffering a loss in the same period a year earlier.

Negotiations​

After completing a round of four disposals of 'underperforming' sites and taking part in a consultation period where it worked to improve the menu and offering at its Dean's Diner and Villagio sites, Philip Shotter, the Richoux Group chairman, revealed the company would be returning to the acquisition trail.

"The Group are pleased to report improved results, having now completed the disposal of the remaining underperforming sites and are continuing to focus on improving the offer at the Group's Dean's Diner and Villagio sites".

"The Group is currently in negotiations to take two new sites, one of which is intended to trade as a Villagio, the other as a Dean's Diner."

Shotter explained the company was hopeful of securing new financing of up to £2m to fund the expansion.

"Despite the two new site openings and potential funding, the Group will continue to adopt a cautious and measured approach to taking any new sites," he said.

Villagio​

Richoux, which now operates 12 restaurants, founded the local Italian brand Villagio last year when it opened four sites under the concept including two in Barnet and Andover - venues previously operated under the Zippers format.

In its latest announcement, the company said it had now sold the Barnet site and converted the Basildon Dean's Diner to the Villagio brand.

The further three restaurant disposals were all sites that had operated under the 1950s American diner-themed concept previously known as Frankie's Easy Diner - Slough, High Wycombe and Basingstoke - leaving the concept with just three restaurants in Kent, Hampshire and Essex.

The company continues to run four Richoux all-day dining restaurants in central London and one site under the contemporary family brand Zippers.