Directors of MOD Pizza UK insist like-for-like revenue growth remains their key performance indicator despite racking up losses of £11m linked to getting the business established.
The chain was incorporated midway through 2015 and did £640,000 in turnover during 2016. Last year its revenue increased to £3.7m as it ended the period with five restaurants, having opened one and closed one during the year.
However, accounts filed with Companies House this week show that losses more than doubled from £5m to £11m in 2017, which the business said “predominantly reflects the cost of the support team, impairment charges and other costs associated with closing a restaurant”.
In the strategic report accompanying the results, MOD’s directors stated: “As the company builds brand awareness in the UK, it is primarily focused on driving sales growth and its key performance indicator is like-for-like revenue. Sales have increased significantly since opening and like-for-like revenue was 28% for the period.”
The company noted that it intends to drive up the performance of its five existing restaurants as well as roll out the concept further with up to four openings planned in 2018. It said it plans to build a “significant” pipeline for future years.
The business is a joint venture between shareholders Freston Ventures Investments and MOD Super Fast Pizza (International).