The Restaurant Group to report dip in sales as it prepares for another tough quarter

 
Caitlin Morrison
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Frankie & Benny's has been causing problems for the Restaurant Group

The Restaurant Group expects to report a dip in sales for the 53 weeks to 1 January, and said the company is gearing up to make significant changes.

The figures

Total turnover was up 3.7 per cent on the previous year, hitting £710.7m, but like-for-like sales dropped 3.9 per cent.

In the fourth quarter, like-for-like sales were down 5.9 per cent.

The group closed 37 sites and opened 24 last year.

Shares in the company dropped by more than eight per cent at the open.

Why it's interesting

The group recently completed a review of the Frankie & Benny's restaurant chain, and based on its findings started price and menu trials, which the firm said "confirm that substantial price and proposition changes are required".

Meanwhile, a strategic review of the company's other leisure brands has "revealed a need for similarly significant change".

As the company embarks on this transformation programme, it said it expects the trading performance of the business in the first half of 2017 to "remain difficult", but anticipates "momentum improving towards the end of this transitional year as our initiatives start to take effect".

What The Restaurant Group said

"Since joining the group in September, I have been impressed by my colleagues' passion for our brands, and commitment to our customers through what has been a very difficult trading period," said chief executive Andy McCue.

"I'd like to thank them all for their positive contribution, and for their continuing support, as we make the necessary changes to offer better value and satisfaction to our customers."

In short

The Restaurant Group endured a tough 12 months last year, and it's not clear what's on the menu for 2017.

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