Restaurant Group coping in downturn

28th Aug 2009 08:04

Cost control measures and a refusal to slash prices helped Restaurant Group, the company behind the Frankie & Bennie's and Chiquito chains, to post a rise in profits for the first half of the year despite falling sales at its restaurants.Pre-tax profits climbed to £21.7m from £21.1m over the same period the previous year. Revenues climbed to £210.1m from £203.2m, but were down by 3.5% on a like-for-like basis, which excludes the impact of new outlets. 'We have continued to eschew the deep discounting that has been prevalent elsewhere in our marketplace,' the firm said, adding that cost control measures had helped margins.The firm's 182 Frankie & Bennie's outlets traded well during the period, growing revenues and profits, while the 60 Chiquito restaurants traded 'solidly', though profits eased slightly due to higher food costs and a new lunch menu that was set at a 'very competitive' level.The 21 Garfunkel's restaurants, which are mainly based in central London, have traded 'superbly' the firm said.Trading across the group has continued to be strong in the early stages of the second half, Restaurant Group said.'Although we expect conditions to remain tough in our sector, at least for the remainder of the year, we are very encouraged by the consistency and resilience of TRG's business,' it said.