Tragus in vow to continue expanding

Tragus opened 11 new restaurants in the year to May 29 and will take its portfolio beyond the 300 mark with up to 20 additional sites in the current year. It has also invested in a more contemporary look at Strada and begun trials of a new identity for its Cafe Rouge estate.

Coupled with the impact of the Strada refit, which caused the temporary closure of 32 sites, Tragus said tough trading conditions meant underlying earnings fell 9 per cent to £41.2m in the year to May.

Its like-for-like sales were also lower for a third year in a row after dropping 2.6 per cent, although overall sales increased by 2 per cent to £277.4m.

Chief executive Graham Turner said Tragus continued to face inflationary cost pressures in a market driven by promotional offers.

However he added there was “considerable potential” for growth in the UK of its three key brands of Cafe Rouge, Strada and Bella Italia.

Mr Turner said: “Despite the challenging environment of the last few years, significant numbers of consumers continue to eat away from the home environment, both as a lifestyle decision and attracted by the value for money offerings in the casual dining sector.”

The company, majority owned by private equity firm Blackstone since December 2006, employs 7,000 people. Its biggest division at the end of the last financial year was Cafe Rouge.