Wagamama’s turnover increased 19% to £230m last year, with the continued expansion of its restaurants in the UK helping to drive the growth.
UK sales accounted for 96% of its revenues, with the rest coming from the US and franchise activities in Europe, the Gulf and New Zealand.
By the end of fiscal year 2017, the majority of the estate will be new, rebuilt or refurbished. Currently it operates 158 restaurants in 18 countries worldwide.
Based on the current size of its estate, each Wagamama store now generates an average turnover of almost £1.5m.
UK sales went from £186m a year ago to £222m this time around. “This was primarily due to the increase in the number of restaurants from 112 open at the end of Q4 2015 to 120 open at the end of Q4 2016 and a 13% like-for-like sales increase,” the company stated.
Wagamama said that 16 refurbishments were completed in the period, including a major rebuild at Heathrow Terminal 5, bringing ‘Kaizen’ design to the existing estate.
The Kaizen project, which seeks continuous improvement in all restaurants across all aspects of operations, including new and rebuild designed restaurants as well as the refurbishment of key existing restaurants, successfully drove higher average unit volumes.
Wagamama also introduced the Deliveroo delivery operation into 76 restaurants and said the concept was delivering “strong sales and profit growth”.
Internationally, the Japanese themed chain said that it is now building foundations to extend the brand in the US, with a flagship New York City restaurant opening planned for September 2016. In the past year it has also increased the number of franchised restaurants in Amsterdam, Bahrain, Dubai, Auckland and Bratislava.
David Campbell, CEO of Wagamama, said that having established a strong UK brand, which has now outperformed the UK restaurant market for 112 consecutive weeks, it is excited about the prospect of moving further down the path of creating an iconic international restaurant brand.
“The USA is a significant opportunity for us and we have already initiated our growth strategy with the acquisition of two leases in New York. We have also further bolstered our European footprint by adding new European franchise markets,” he said.
We have great people throughout the business and a talented executive team in place to continue to make this business a success. We are confident that with our market-leading position, well-invested portfolio and stable and resilient business model we are well-positioned for future growth.”