(Alliance News) - Fulham Shore PLC said Friday the vast majority of its restaurants are now open for indoor dining.
The firm, which owns restaurant chains Franco Manca and The Real Greek, said revenue for the first full week since reopening for indoor dining - May 17 to 23 - saw revenue slightly higher than a similar week in 2019.
Fulham Shore's revenue was 103% of a similar week in 2019, while, on a like-for-like basis, revenue was at 92% over a similar time in 2019 - when it had 61 restaurants, not yet the 73 restaurants it has now.
"This recent sales performance is very encouraging despite the restaurants having restricted capacity due to social distancing," Fulham Shore added.
It noted 71 out of the its 73 restaurants are now open, which includes 53 of 54 Franco Manca and 18 of 19 The Real Greek. The remain two restaurants are in the Covent Garden area of London's West End and will be reopened at the start of June.
Fulham Shore continued: "As a result of this trading performance, the group continues to plan the opening pipeline for the next three years. Our property team is travelling around the UK looking for new properties, and we have a number of sites that are currently in legal negotiations."
Since the start of its new financial year at the end of March, the company has opened a new Franco Manca on High Holborn in London and is set to open another on Mitchell Street in Glasgow.
Shares in Fulham Shore were 1.6% higher in London on Friday at 16.00 pence each.
AJ Bell Investment Director Russ Mould said: "The best test for the company is whether this latest strong demand can be sustained. Anecdotally, some barbers and hairdressers have said their shops were initially busy when restrictions were lifted in April, but then they suffered a lull for two or three weeks until people’s hair grew a bit and customers came back for another trim."
"While it's fair to say that it only takes a day for people to feel hungry again, there could be a similar cycle for restaurants where diners wait a few weeks or even a month before frequenting their favourite establishments again," Mould continued.
He added: "Fulham Shore could be at an advantage, however. Quite a big chunk of its restaurant estate has outside tables and the immediate weather forecast is for a few weeks of sun, meaning people could be out and about, ready to dine al-fresco style at places such as The Real Greek.
"The casual dining industry has also seen a reduction in overall capacity, meaning the supply-demand balance is looking more favourable for companies still operating. Many brands have disappeared in recent years, meaning those still standing could emerge even stronger in the medium term."
By Paul McGowan; paulmcgowan@alliancenews.com;
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