Restaurant operator Richoux restructures estate during loss-making first half

Richoux Piccadilly

Restaurant group Richoux has restructured its estate with a view to improving its performance after reporting half-year losses of £1.1m on sales down 20% to £5.6m.

The group currently has 17 operating restaurants, which trade under the Richoux, Friendly Phil’s and Villagio brands.

During the first half, added focus has been put on improving its restaurant teams, food and premises, as well as laying the foundations for significant improvements in its digital capabilities.

It has also modernised its Richoux restaurants while attempting to stay true to its traditional heritage, and has rebranded its Dean’s Diners into its Friendly Phil’s format, a vintage American diner concept.

The firm said it had disposed of three underperforming units during the period, and a further two since the period end.

“Over the last six months we have continued to refresh our estate, and have focused on restaurant design, food and service quality,” explained chairman Simon Morgan.

“We have experienced some growth in trade of the rebranded restaurants but, in line with the industry, not at the level we had hoped for and we currently see no consistent improvement in trading conditions from those prevailing when we last reported in April this year.”

Following the update, directors of the company said they were not recommending the payment of a dividend.

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