South West-based café restaurant operators Loungers has hailed record revenues and plans to open 34 more sites over the next year.
The group behind the locally-branded Lounge café bars and larger Cosy Club dining pubs revealed that revenues jumped by 19% to £283.5 million for the year to April 16. This represented a like-for-like growth of 7.4% over the year.
Some of this growth is down to its coastal sites performing 25% better on average, and the group predicted a record-breaking year for its 23 seaside venues (from a total of 232 sites). It said resorts like Weston-super-Mare and Mumbles were “thriving again”, with seven of the ten best performers for the company being seaside based; Llandudno and Mumbles particularly standing out.
Loungers has opened new locations in Llandudno, Plymouth, and Southport, with more sites to come in Deal and Paignton. The Martello Lounge in Clacton-on-Sea, located on the beachfront, is the group’s most significant investment in a single building, occupying the Atlanta Building.
According to the company’s forecast, coastal tourism is expected to exceed £20 billion for the first time this year, with more than 250 million day trips planned.
Loungers’ chief executive Nick Collins said: “Pre-pandemic, coastal tourism in the UK was worth just over £17bn (according to the National Coastal Tourism Academy). Based on the revenue growth we’ve been seeing in our coastal venues since then, we’re confident that 2023 will be a record-breaking year both in terms of revenue and visits.
“The enforced staycations during the covid pandemic reminded people of the fantastic range of holidays available in the UK, and the cost-of-living crisis means that some people will be looking to lower the cost of their annual summer break.
“Add to that the growing awareness of the environmental impact of air travel, and the fact that the Met Office is predicting that the UK summer of 2023 will be even hotter than that of 2022, and the stage is set for a hugely successful holiday season for coastal tourism.
“We’re proud to be able to offer something for everyone at all times of the day in a family-friendly environment, from breakfast through lunch to evening meals, pints and cocktails.”
According to Collins, inflationary pressures are easing in a boost for customers.
“We feel we have largely mitigated most of the inflationary pressure well but also can now see that this inflation is diminishing,” he said to the PA News Agency.
“We are renegotiating some of our food costs soon and because we are a much bigger customer than when we first started our contract, we will be able to secure some significant savings.”
The CEO is optimistic about the future due to improving inflation and positive consumer trends.
