The group behind Lebanese restaurants Comptoir Libanais and Yalla Yalla has reported losses of £1.6m, following what bosses describe as a year of “erratic” footfall and soaring costs.
Comptoir Group, which owns 22 restaurants across the UK and the Middle East, blamed the mounting losses on “inflationary pressures”, which it said had bumped up wages, utility costs, and the price of ingredients.
It said it had also struggled to maintain a steady flow of customers, with footfall in the UK “remaining erratic” following the pandemic.
This is the second year in a row the company has seen a drop in profits, after it reported losses of £600,000 in 2022.
Despite this, Comptoir Group chair Beatrice Lafon said she was confident the company could improve on these results in the coming year.
She said: “We remain optimistic and cautious about 2024 as costs and prices continue to rise in high single and double digits.
“We are focused on executing our plan well, to be in a strong position to capitalise on any demand recovery.
“The business enters 2024 with renewed energy and a new team, a balanced portfolio of brands and locations and a strong cash position.”
Although profits fell, the company did see a slight increase in revenue to £31.5m, a growth of 1.4 per cent, on the previous year.
It also added more restaurants to its portfolio, launching venues in Ealing and Southbank, plus a new franchise in Abu Dhabi.
Lafton said the business would focus on building on this growth in 2024, as well as continuing its ongoing refurbishment programme and adding a bigger variety of plant based options to its menus.
She added that there would also be a focus on improving the company’s sustainability credentials by investing in “green technology” and refreshing its sourcing partners and policies.