The founder of Patty & Bun remains ‘cautiously optimistic’ for the future of the burger brand, despite the difficult current climate hitting the hospitality sector.
In the company’s latest accounts, Joe Grossman said that Patty & Bun was ‘well placed to tackle future challenges’ following the pandemic, indicating that the brand is poised for growth when ready.
For the year ending 28 November 2019, sales decreased by 6.6%, despite strong underlying performance, due to the temporary closure of the Liverpool Street branch and no openings during the financial year.
The company posted a loss of £270,277 as a result.
Operating profit was £275,748, in line with expectations, and turnover was down more than £1m to £10.861m, from £11.636m in 2018.
A rolling refurbishment programme into new and existing sites continued, with £566,459 invested into sites including Liverpool Street and Kingly Street which were opened post year end.
All 10 restaurants and four concessions of Patty & Bun closed in March due to the coronavirus pandemic, with some sites reopening on May 1 for delivery only.
Explaining how the brand survived the lockdown, Grossman detailed that the business had received cash grants from local authorities for restaurants which were eligible, as well as secured a Business Interruption Loan from its backer, Barclay’s Bank. Grossman added that he had also been in negotiations with landlords on rent payments and holidays.
During the year, Patty & Bun also launched new brand, Sidechick which has garnered initial positive feedback with strong growing sales and high spend per head.
Grossman writes that by the end of July, eight of Patty & Bun’s 10 sites had reopened, with the exception of its London restaurants.
He added that the focus for Patty & Bun now will be to keep the brand presence alive both through social media and various brand partnerships; a consistent revenue stream for existing sites and DIY kits and rebuilding the teams so employees can get back to work in full effect.
“The director remains cautiously optimistic for the future. The current climate will remain difficult for the hospitality sector. However, the director believes Patty & Bun is well placed to tackle future challenges.”