Italian restaurant chain Prezzo has defied the poor economic conditions by posting a healthy annual growth total, and has announced that it will be using the welcome boost to business to further expand its commercial property portfolio across the UK.
The chain, known for its affordable and high quality pizza and pasta dishes, has enjoyed an increasing popularity in the UK thanks to high profile openings on sites such as Manchester’s Printworks and Salford’s MediaCityUK.
In the past financial year, Prezzo managed to record a 17 per cent leap in revenues, taking the annual total to £144.5 million. Underlying pre-tax profits also rose accordingly by 11 per cent, ending the year on a healthy £18.3 million.
As a result, Chairman Michael Carlton is confident that further expansion of the chain will allow for yet more growth in the company’s finances and as such will be aiming to open 25 new outlets by the end of 2013. Prezzo currently operates 211 branches throughout the UK – 31 of which were added to the company portfolio last year.
Mr Carlton praised the chain’s performance in the “fifth consecutive year that we have entered without a clear conviction that the UK economy can deliver sustained growth on any meaningful scale.”
He added; “Prezzo has prospered during this period of uncertainty and we will continue to drive the business forward.”
Chief executive Jonathan Kaye believes that the success of the chain in 2012 is down to improvements in its food, services and restaurants. Furthermore, he predicts that Prezzo’s good fortune will continue into this year, as trading in the first quarter has already outshone last year’s performance for the same period.
However, it is not only the Prezzo chain which will be expanding this year, as its subsidiary chain Chimichanga is celebrating a successful 2012 as well. The popular Mexican-themed eatery already has 28 restaurants in the UK, but will hopefully see 9 further properties added to its portfolio over the next 12 months.
Chimichanga will also be expanding into as-yet unexplored markets in a bid to increase its customer base.
Mr Kaye explained; “Previously, Chimichanga was primarily on leisure parks and higher footfall locations and we have now expanded it into a wider range of locations.
“It is trading very well in smaller market towns.”
With the UK economy teetering on turnaround, and the retail and leisure industries tentatively posting ever-improving figures, perhaps we will see last year’s impressive totals for the Prezzo chain multiply greatly by the end of 2013.
Do you think the success of restaurants and takeaways is being driven by a gradually improving economy, or are consumers simply choosing to turn to fast food thanks to price inflation on meat and vegetables in supermarkets?
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