Tasty looking to 'explore new concepts' as revenues rise

The group, which recently agreed a restructuring plan​​, says it will ‘explore new concepts’ next year and beyond.

It reports that revenue grew by 6.5% to £46.9m while adjusted EBITDA was up by £1.8m to £4.4m in its annual results for the 53 week period ended 31 December 2023.

The group says that the cost-of-living crisis and interest rate rises continued to significantly impact FY23 revenue and inflationary pressure on labour, food and utilities had impacted profitability.

Footfall was also affected by the work from home culture post Covid, transportation strikes and bad weather occurring during important trading periods of the year, it says. However, with underlying labour issues easing and inflation falling, the group adds that it expects to see an uplift in profitability towards the end of the year.

Following the restructure, Tasty operates 37 sites, including seven where it has renegotiated on rent agreements, having jettisoned ​​19 sites.

“The board believes that the restructuring plan will allow the group to stabilise towards the end of the year, with a significant improvement in
EBITDA performance expected over the next two years through site rationalisation and other tangible cost savings,” says chairman Keith Lassman.

“We are hopeful that the restructuring plan will allow the group to meet new opportunities in the sector in 2025 beyond its existing operations, including exploring new concepts, attracting new audiences and considering potential partnerships.”