Restaurant operator to fund new projects with growing cash reserves

Richoux Piccadilly

The Richoux Group today revealed it will be making fresh investment to grow the number of stores it operates to 25.

The chain, which currently runs 21 restaurants under the Richoux, Dean’s Diner and Villagio brands, has grown its cash reserves to £4.4m over the past year and will use this to fund the expansion.

“The group is well placed to continue its development this year,” said chairman Philip Shotter. “One site has already opened and two further sites have been secured, for openings during the year which, with another site already secured for 2017, will push the group’s number of sites close to the 25 mark.”

Turnover at the firm increased 3% to £13m last year, with EBITDA up less than 1% to £1.6m. Net profits reached £365,000, down from £420,000 the year before.

The company opened three new sites last year, spending £1.7m on fit-outs, leasing agreements and replacement equipment in existing sites.

Richoux is an all-day cafe and brasserie with five restaurants in Knightsbridge, Mayfair, Piccadilly and St John’s Wood and a new restaurant in Gloucester Road in London, which opened in August 2015.

Dean’s Diner operates eight units, including existing sites in Chatham, Port Solent, Braintree, Fareham, Bicester, Trowbridge and new restaurants in Hempstead Valley, which opened in June 2015, and Orpington, which opened in February 2016.

The group took possession of the new Dean’s Diner in Yate last month and this is due to open in May 2016. An agreement for lease has also been exchanged for a new Dean’s Diner in Bromley, which is due to open in 2017.

Villagio Ristorante runs seven sites in Andover, Basildon, Hammersmith, Chislehurst, Chatham, Port Solent and High Wycombe, which opened in December 2015. A leasing agreement has also been signed for a new site in Canterbury, which is due to open in May.

The group also has one Italian restaurant trading as Zippers Bar, Restaurant and Grill in Chatham following the rebranding of the Zippers restaurant in Port Solent as a Villagio restaurant.

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