Hospitality group Tasty bounced back to profit last year as Britons returned en masse after indoor dining was allowed to restart in May.
The Wildwood restaurant chain owner declared a £1.2million profit for the 52 weeks to Boxing Day, compared to a £12.7million loss in the previous 12 months when coronavirus-related curbs forced outlets to close for much of the time.
Significant pent-up demand and disposable income built up during the lockdown, as well as the growth in domestic holidays caused by international travel restrictions, helped the group’s overall revenue jump 44 per cent to £34.9million.
Healthy results: Wildwood restaurant chain owner Tasty declared a £1.2million profit for the 52 weeks to Boxing Day, compared to a £12.7million loss in the previous 12 months
Sales surpassed management forecasts prior to December as relatively sluggish trade at its city centre establishments was offset by high footfall at its residential outlets, where the majority of its estate is situated.
However, the emergence of the Omicron variant meant sales over the peak trading period came in below expected levels as the UK Government advised people to work from home.
The company said trade this year has begun well but warned that profitability this year will be affected by reduced public financial support and increasing costs, many of which are set to arrive in the first half of next month.
These include the anticipated 1.25 per cent hike in National Insurance contributions, the rise in the National Living Wage from £8.91 per hour to £9.50, and the end of business rates relief.
VAT on purchases in hospitality venues is also due to return to 20 per cent, something that hospitality bosses have been urging Chancellor Rishi Sunak to announce he will jettison in his Spring Statement today.
On top of all this, Tasty, which also runs five Dim T restaurants, said the UK’s departure from the European Union and the pandemic had caused difficulties in hiring and retaining staff and forced them to raise wages in some instances.
Plea: Hospitality bosses have been urging Chancellor Rishi Sunak to announce today that the expected increase in VAT on purchases at pubs, bars and restaurants will be jettisoned
Its headcount rose by 330 to slightly less than 1,000 at the end of last year, but it admitted that staff shortfalls had led to temporary closures of some establishments when there had positive Covid-19 cases.
The London-based firm said four of its outlets are not trading because of labour shortfalls or weak trading conditions, and is considering either selling or re-gearing the lease of two or three of them,
Hospitality has been one of the sectors most harmed by the pandemic over the last two years, with hundreds of thousands of job losses and mass closures of pubs, bars and restaurants.
Virtually all sectors have also been impacted in some form by recruitment problems, but this issue has been particularly acute in hospitality, which has relied for some year on significant numbers of EU immigrants to fill positions.
Many of these workers returned home after the Brexit vote or during the coronavirus pandemic when all non-essential businesses, such as restaurants, were forced to shut when nationwide lockdowns were in force.
‘During the two years of the Covid-19 pandemic we have had to deal with and adapt to unexpected challenges,’ remarked Tasty’s chairman Keith Lassman.
‘It has been a test of endurance, strength and resilience and our success has been testament to our dedicated teams and management, and our customers.’
Tasty shares were up 10 per cent to 5.5p during the late morning on Wednesday.
