Wimpy also saw sales growth.
Gourmet Burger Kitchen’s (GBK) like-for-like sales increased by 8.1% in the 12 weeks since 28 February, according to its parent company Famous Brands.
In the 52 weeks ended 24 February 2019, the business recorded an operating loss before non-operational items of £4.6m compared to 2018’s £3.6m while its operating margin decreased by 5.7% compared to 4.1% of the previous period.
GBK’s system-wide sales for the period also declined 7.0%, while like-for-like sales decreased by 4.2%.
“Despite the constrained consumer spend environment, GBK started to perform better as remedial measures implemented during the year gained momentum. GBK like-for-like sales in the first six months were minus 9.7%, improving to positive like-for-like sales of 1.4% in the second six months. In the 12 weeks subsequent to year-end, the brand recorded like-for-like sales growth of 8.1%, trading ahead of the market,” Famous Brands said in its report.
The results, the company says, are largely based on its “intensified focus” on re-establishing their “gold standard” across the product and customer experience; streamlining the operation to deliver improved efficiencies, enabling management to prioritise its relationships with staff and customers; targeted investment in refurbishments and a high street storefront facelift programme; and growing online sales through a multi-vendor delivery platform.
Talking about its Wimpy business, Famous Brands stated that 12 stores were closed due to centre redevelopments, franchisee liquidations and inferior standards or non-performance.
“Notwithstanding the closure programme, positive like-for-like sales growth of 5.5% was recorded. Revenue in Rand terms rose to R113m (2018: R104m). Revenue in sterling was 4% higher. Operating profit increased by 16% to R18m (2018: R15m), while the operating margin grew to 15.7% (2018: 14.7%),” the company said.
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