A focus on menu innovation, value for money and “exceptional hospitality” delivered record annual growth for Bristol-based all-day café/bar chain Loungers – with its CEO forecasting even more expansion for the coming year.
The group has been a rare success story on the high street amid the worst cost of living crisis for a generation and following the devastation caused by the pandemic to the hospitality industry. 
During the 53 weeks to 21 April, Loungers chalked up record sales of £353.5m, up 24.7% on the previous year.
In a trading update released this morning to the London Stock Exchange, the group said the performance reflected both continuing strong like-for-like sales growth – up 7.5% across the 53 weeks – and the ongoing success of its new site opening programme.
During the year it opened 36 new venues, a record number following 29 in the previous 12 months.
At year-end Loungers’ portfolio totalled 257 outlets – a figure it is confident of growing in the long term to 600-plus.
Following the opening of its latest Lounge in Ely, Cambridgeshire, its estate is now made up of 220 Lounges nationwide, based roughly on the same concept as its first venue on North Street in Bedminster, which opened nearly 22 years ago offering a relaxed atmosphere with a strong food offering and quirky décor.
This template has worked particularly well on suburban high streets and smaller town centres where rents are often lower and competition is mainly from coffee shops or traditional pubs.
The group also has 35 Cosy Clubs, which tend to be based in larger, city and town-centre buildings, pictured above, and three Brightside roadside restaurants, all in the South West. 
The group said the strength of its sales performance had been accompanied by disciplined management of costs and a continued easing of inflationary cost pressures and, as a result, it expects earnings in the current financial year to be ahead of market expectations.
CEO Nick Collins, pictured, said: “We have consistently out-performed the sector on a like-for-like basis whilst having delivered a record 36 new site openings.
“As ever, it’s our continued focus on menu innovation, value for money and exceptional hospitality that is driving the strength of our performance in both the mature estate and our new openings.
“As we start the new financial year we are looking ahead with optimism. Our experience suggests that the UK economy is holding up well and we are well positioned to deliver continued growth.”
Loungers expects to next update the market on 9 July when it will announce its preliminary results for the 53 weeks ended 21 April.
