Restructuring wipes 34% of Prezzo Italia estate to save margins
The group is prioritising a simplified menu and forty site refurbishments to combat a gross profit margin that dipped below 40%.
Brava Hospitality Group Limited, formerly Prezzo Investco Limited, reported a total comprehensive loss attributable to the owners of £4.79m, following a year of business restructuring, increased investment in marketing, digital capabilities, and site refurbishments that will set up the business for growth.
Revenue fell to £92.6m in 2024 compared to £110.4m the year before. Gross profit margin also dipped by 38.9% from 40.2% in 2023.
In July 2023, the brand closed several restaurants under its Restructuring Plan, which saw 148 restaurants drop to 97 in 2023. Some restaurants were also refurbished, which the group said yielded strong like-for-like growth. The combination of these activities resulted in earnings before interest, taxes, depreciation, and amortisation (EBITDA) falling to £600k in 2024 compared to £2.2m the year before.
In November 2024, James Brown was appointed as CEO, which resulted in the business restructuring its Head Office team at the end of 2024 and strengthening the Senior Leadership Team in early 2025.
In May 2025. Prezzo rebranded as Prezzo Italian and launched a significant refurbishment programme post rebrand, which will see twelve restaurants refurbished in 2025, with over forty expected in 2026. Two sites have been exited in 2025, and three new sites have been opened in Edinburgh, Rugby and Kingston on Thames. Menu development is focused on establishing Prezzo Italian as the Home of the Italian Classics, allowing for a simplified menu and improved margins.
The group anticipates that EBITDA will exceed £3m in 2025, absorbing the significant cost inflation within the market, most noticeably from increases to the National Living Wage and National Insurance, which increased in April 2025.
The full year impact of the operational changes and investments made during 2025 is expected to result insignificantly enhanced profitability in 2026.
As of 29 December 2024, Prezzo operates from 96 restaurants around the UK.
