Wagamama owner warns of ‘volatile market’ as food and drink inflation surpasses expectations
The owner of Wagamama has warned food and drink inflation is anticipated to be as high as 10 per cent this year, higher than earlier estimations.
In a trading update ahead of its AGM, The Restaurant Group (TRG) said its cost pressures had been exacerbated by the war in Ukraine.
Food and drink inflation was now expected to be around nine to 10 per cent in the 2022 financial year, versus the above five per cent estimation provided at the group’s full year results in March.
While TRG said it would continue to work with supply chain partners to mitigate some of the impact, it cautioned that “this remains a volatile inflationary market.”
However, the firm said its financial position had improved, with net debt reducing by approximately £6m since the year-end and cash headroom in excess of £220m.
Wagamama and TRG’s pubs estate saw like for like sales outperform the market by nine per cent and 11 per cent respectively, while it said its leisure sales were in line.
At least eight Wagamama restaurants and three delivery kitchens are anticipated to open this year, including a new flagship restaurant at Marble Arch next month.