Azzurri has ambitious pipeline of sites across UK for Dave’s Hot Chicken
The firm behind Italian chains Zizzi and Ask Italian has slumped to a full-year loss after investing in the UK launch of the Dave’s Hot Chicken chain and amid a soaring wage bill from April’s tax hike.
Azzurri Group, which also runs Coco Di Mama and Mexican fast food business Boojum, said it swung to a £2.7 million operating loss in the year to June 30, down from earnings of £400,000 in the previous year.
It said this included £1.4 million of investment in the launch of its debut into the fried chicken market, starting with the opening of the first Dave’s Hot Chicken site in the UK last December, as well as expansion of the Boojum brand.
On an underlying basis and with the investment costs stripped out, the group said underlying earnings fell to £31.6 million, down from £32.1 million the previous year, as revenues remained flat at £303.1 million.
The firm, which employs nearly 6,000 people, saw earnings held back by an extra £7 million in staff costs from April’s hike in national insurance contributions and the minimum wage increase.
But the firm, which has more than 230 locations, said it was still expanding despite the wider trading pressures, with six sites opened in the year to June and further sites already opened so far in the current financial year.
Steve Holmes, chief executive of Azzurri Group, said the group had been able to “successfully navigate the challenging UK hospitality backdrop and deliver a robust financial performance”.
He added: “Looking to the year ahead, we have exciting plans for all of the different growth levers we benefit from – our established brands, ASK and Zizzi, will continue to innovate and strengthen their leading positions; We will advance our plans to replicate Boojum’s huge Irish success in Great Britain; Coco di Mama will build on its significant opportunities in supermarkets and in delivery kitchens.
“Most excitingly of all, we have an ambitious pipeline of sites across the UK for Dave’s Hot Chicken and will also start our expansion plans in Continental Europe.”
But the group said there would continue to be a challenging wider backdrop over the current financial year.
“While the UK hospitality market will continue to face headwinds in 2025-26, including April 2025’s increases in the national living wage and national insurance, our operational platform and continued diversification mean we remain well positioned to navigate these challenges and capitalize on market opportunities,” it said.