Noodle chain Wagamama has said UK sales and earnings fell in its first quarter as the Covid-19 crisis brought an abrupt end to its run of strong trading.
The pan-Asian eaterie had seen UK like-for-like sales jump 8.4% in the first eight weeks of the year, but trading fell sharply in the final weeks of its quarter, with the government-mandated lockdown then seeing all its 151 UK restaurants shut their doors on March 23.
This left total sales in its company-run restaurants 1.2% lower in the 13 weeks to March 29, while Wagamama said gross profit fell 2.7% quarter on quarter to £33.2 million after the Covid-19 hit.
Its 55 franchised international restaurants suffered a 14.2% slump in sales over the quarter.
Restaurants in the US - which are now run as a joint venture after it offloaded an 80% stake in the chain - saw sales plummet 63% in the quarter largely as a result of the deal in January.
It also took a £4.5 million charge in its first quarter, including costs of the coronavirus crisis.
The results are a big problem for Wagamama’s parent company The Restaurant Group - which also owns nationwide chains such as Frankie and Benny’s.
The Group recently announced plans for a rescue deal to close 125 sites and slash rents in a move that puts up to 3,000 jobs on the line.
