THE company behind restaurants Gourmet Burger Kitchen and The Real Greek has suffered a 13 per cent slump in profits – scuppering any major expansion plans next year.
Clapham House Group – whose Tootsies chain closed in October – said trading conditions remained “pretty challenging”. However, the firm claimed there were signs that things were picking up after the 13 per cent pre-tax profit slide to £1.3m in the six months to 27 September. Revenues rose 13 per cent over the half-year in which the business was hit buy the collapse of Tootsies.
Chief executive Paul Campbell said the GBK and The Real Greek were surviving well in the recession, adding he was focused on two “robust, growing and cash generative restaurant businesses”. The average spend on a meal at GBK is £10.50 while The Real Greek figure is £15 – with both figures holding steady.
Clapham chief executive Paul Campbell said expansion would be limited to two more in the UK and little more internationally. The firm opened two new UK restaurants in the first half of the year and none in the second. Administrators BDO Stoy Hayward sold 11 of the 21 Tootsies outlets to fellow restaurant firm Giraffe, but is still seeking buyers for the remaining 10 eateries.
Clapham House has 51 GBK outlets across the UK and 13 under franchise overseas.