‘Encouraging’ July trading for Loungers
Having reopened all 136 Lounge and 29 Cosy Club sites – with the exception of Cosy Club in Leicester which resumes trading on 7 August – Loungers has seen like for like sales down just 1.7% year-on-year over the four-week period from 4 July.
Loungers previously explained that it would be rolling out its ‘From our Lounge to your Lounge’ takeout offer as sites reopened as well as investigating measures such as order-at-table technology, condensed menus and cashless venues to ensure staff and customer compliance with Government guidance.
“Whilst these are still early days, we are encouraged by the initial strength of our trading performance to date and remain confident the Company will emerge strongly from this period,” a trading update issued on 5 August stated.
Having kicked off a phased reopening schedule on 4 July, Loungers accelerated its programme last month while also revealing plans to open its 30th Cosy Club site on 10 August in Birmingham.
However, as previously reported by The Morning Advertiser (MA), the café-bar operator revealed that two of its Lounges – Banco Lounge in Bristol and Allegro Lounge in Northfield, Birmingham – had closed permanently.
“It remains our view that Loungers is well placed coming out of lockdown and we are optimistic with regards to future trading and the continued planned growth of both our Lounge and Cosy Club brands,” Collins commented at the time.
Loungers will provide its next update in late September when the operator publishes its preliminary results for the year ending 19 April 2020.
As previously reported by MA, Loungers revealed plans to continue the expansion of its estate after the relaxation of Government imposed closure having raised approximately £8.3m through an ordinary share placing on 22 April and securing a £15m revolving credit facility from its lending banks.
