Tasty, the owner and operator of the Wildwood and Dim T brands, has cut its workforce by more than 30% and admitted it is “extremely cautious” about trading once the Eat Out to Help Out scheme comes to an end.
The casual dining firm has implemented a phased reopening schedule over the past month, principally to take advantage of the government discount scheme.
It expects to have up to 48 sites trading in August, which will represent approximately 86% of the estate.
Most of the remaining restaurants are not planned to reopen for the foreseeable future and some of the restaurants which are currently open may need to close again should they not reach expected trading levels, the company warned.
Tasty said it has experienced a positive level of sales this month to date, temporarily supported by the increase in people staying in the UK this summer, government initiatives and pent-up demand following the relaxation of lockdown restrictions since March.
However, the board said they expect future trading to remain challenging and are extremely cautious regarding trading in September.
The company said it is continuing to explore ways to minimise costs and to strengthen the balance sheet including the possibility of new debt and equity capital.
Discussions are also continuing with landlords and trade creditors to reduce current and future liabilities.