Gourmet Burger Kitchen turnaround bears fruit
Like-for-like sales saw an 8.6% rise.
Gourmet Burger Kitchen (GBK) saw its operating losses plunge by 76%, benefiting from an “extensive range of operational improvements” together with the CVA (company voluntary agreement) restructuring programme completed over the past year.
The Famous Brands-owned restaurant group saw system wide UK sales fell by 12.5% that was attributed to the closure of 24 stores during the CVA, which were then followed by a further seven properties. Like-for-like sales, however, saw an 8.6% increase.
“Despite the subdued economy and general pressure experienced by the industry, GBK’s like-for-like sales grew, attributable to intensified focus on the quality of the offering (product and experience); a targeted reinvestment in refurbishments; an intensified campaign to upweight online sales; and improved management of efficiencies and costs,” Famous Brands CEO Darren Hele said.
Wimpy, also owned by Famous Brands, expanded its multi-partner offering, which contributed to its positive like-for-like sales growth. Operating profit increased by 57%, whilst the operating margin rose to 22%, underpinned by foreign currency translation gains.
