Hard Rock Cafe sees losses narrow as sales rise

In the year ended 31 December 2023, the group, which operates five sites across the UK including two in London that incorporate both restaurant and retail spaces, saw sales rise to £32.5m from £27.2m the year before.

It marks the first time sales have risen above £30m for the group since 2019.

Most sites returned to pre-pandemic trading levels over the period, with the average spend across retail increasing 7% and restaurant transactions rising 12%.

However, operating expenses also increased 14%.

During the year, the company recorded right of use leased asset impairment expenses of £600,000 on its Glasgow restaurant, which subsequently closed in March this year.

Hard Rock added that management is ‘reviewing’ the operations and lease agreement at its site in London Piccadilly, which opened back in 2019​​, with the goal of improving results at this location.

A statement from the company said: “Directors have assessed the ability to sustain the current financial performance over the next two to three years.

“Having taken into consideration the broader leisure and tourism markets that drives restaurant and retail income through sales growth, even in the face of difficult macro-economic and geopolitical factors affecting the global tourism economy, the directors believe that the company’s financial performance will continue to improve to pre-pandemic levels.”