Spaghetti House swings to loss amid ‘extremely difficult year’

The group, which operates eight restaurants in the capital under its core brand, saw turnover increase to £10m over the period from £9.8m the year before.

Spaghetti House said the current economic and political climate had contributed to the challenges faced by the business over the year, with footfall yet to return to pre-pandemic levels, and inflation and wage costs hitting its bottom line.

Despite this, though, the group achieved its best ever profit margin, rising from 75% to 77% over the year, which it attributed to wastage control and reviews of portion size and stock, together with the implementation of a central distribution process.

The group’s loss for the period compared to a profit of £334,681 last year; however, those results included one-off other income of over £1m.

Adjusted EBITDA was £52,483, compared to negative adjusted EBITDA of £545,321 the year before.

Earlier this year, Spaghetti House launched a new brand in Earl’s Court called A Braccetto.

Billed as a ‘next gen’ neighbourhood Italian restaurant, the concept offers a menu of classic regional dishes including ‘fresh and artisan’ pastas, ‘lightweight’ Romana pizzas and seasonal specials.