Cozy Club Owner Loungers Reports Strong Sales Growth

Loungers said it continued to outperform the broader hospitality industry throughout the summer and early fall thanks to strong revenue growth.

The Bristol-based group, which owns the Lounge, Cozy Club and Brightside brands, revealed its like-for-like sales rose 4.7 per cent in the 24 weeks to 6 October.

Total turnover increased by 19.2 per cent after the Aim-listed company opened 17 more stores during the period, taking its total assets to 273 stores.

One of them, the Ritorno Lounge on Bristol Harbour, had the strongest start for a new site since the firm was founded in 2002 by friends Alex Reilley, David Reid and Jake Bishop.

Loungers plans to open another 18 stores during the last six months of this financial year.

The company said the result was “another clear demonstration of Loungers’ ability to consistently outperform the wider UK hospitality market”.

Loungers has enjoyed excellent growth over the past two years despite the well-documented difficulties affecting the hospitality sector.

In the 12 months to April 2024, its revenue grew by around a quarter to a record £353.5 million, while pre-tax profits soared by more than half to £11. £4 million.

Its performance was not only boosted by the opening of new venues, including its 250th site, the Pionero Lounge in Rochdale, but also by price increases and modest volume growth.

Nick Collins, chief executive of Loungers, said: ‘From what we’re seeing across our sites, UK consumers are increasingly feeling safer and want to go out and enjoy themselves all day long.

“That confidence, combined with the variety, breadth, flexibility and relevance of our all-day offering, is reflected in our continued sales success.”

The latest update on the sunbed trade comes a day after analysis by accounting firm Price Bailey warned that one in 10 British pubs were at imminent risk of closure.

It also estimated that 20 per cent of the country’s pubs were technically insolvent because they had negative net assets on their balance sheets.

Since 2020, the closure of pubs, restaurants and bars has been forced to deal with temporary Covid-related restrictions and elevated inflationary pressures, including higher staff, energy and food and drink costs.

The British Beer and Pub Association, a trade body, has called on the government to reduce beer tariffs, reform business rates and maintain 75 per cent business rates relief in its next budget.

He warned that “any further price increases, on top of the inflationary pressures of recent years, push many beer and pub companies to the limit.’

Fifty pubs a month closed permanently in England and Wales during the first six months of 2024, according to property intelligence firm Altus, meaning there were 39,096 pubs in the two countries at the end of June.

Sunbed actions They rose 1.1 per cent to 269 pence on Tuesday afternoon, taking their gains over the past year to 41 per cent.