Loungers eyes at least 600 sites
Loungers has said it has identified potential for at least 600 sites across the UK.
The Lounge, Cosy Club, and Brightside operator said it had identified a “strong pipeline” of new sites, with the capacity to open a record 34 openings next year.
This comes as the group posted its results for the year ending 16 April 2023, during which it opened its 200th site at Cosy Club Chester.
It ended the 2023 financial year with 222 total sites, which included the opening of its first Brightside roadside restaurant near Exeter.
A second Brightside restaurant recently opened near Saltash, while a third is expected to open near Honiton in early August. Loungers said it had been “encouraged” by how Brightside has traded and remains “excited” by its potential.
Loungers said the 2024 financial year would be “overwhelmingly dominated by Lounge openings”. It added that it would open its first sites in the north east. The Lounge chain itself is expected to reach 200 sites by the end of the financial year.
Loungers also said it would be “selective” of new Cosy Club sites, as it looks forward to opening its first in Oxford, a city the group sees hosting four Lounge sites in the future.
The group said it will remain “disciplined” in its approach to opening new Cosy Club and Brightside sites, with its overall strategy remaining focused on opening new Lounge sites.
During the 2023 financial year, Loungers saw revenue increase to £283.5m, up from £237.3m in 2022. However, adjusted operating profit declined to £24.1m, down from £34.0m the previous year.
Nick Collins, Loungers chief executive, said: “We are proud to be making a positive contribution to high streets and communities across the UK and there are hundreds more locations around the country for us to target.
“Based on our experience the UK consumer remains positive, inflationary pressures are diminishing and recruitment challenges have eased. As an example, a few weeks ago, we opened Ormo Lounge in the seaside town of Llandudno which achieved a record level of sales for any new Lounge opening in our 22-year history, reflecting the relevance of our offer and how well we trade by the coast.”