Pizza and pasta restaurant chain Prezzo has outlined more ambitious expansion plans after serving up a 14% rise in profits. The chain, which operates 189 restaurants, said underlying profits hit £16.4 million in the year to January 1, helped by the opening of 27 new sites and strong trading in the final quarter of the year.
It warned that customers had been more cautious in early 2012 but said it will still open another 20 sites this year, including its 20th Chimichanga Tex-Mex eatery.
Prezzo, which halted expansion plans in 2009 during the recession, recently unveiled a new restaurant as part of the redevelopment of Kings Cross railway station, and plans further openings in Bath, Cobham and Bristol.
The Essex-based group said its expansion plans mean it will create about 350 jobs in 2012.
Sales rose 18% to £123.9 million, helped by opening sites in Edinburgh, Manchester, Canterbury, York, Bishop’s Stortford and Rugby. It also increased its presence in suburban London with openings in Belsize Park, Mill Hill and Eltham.
Bottom-line profits rose 15% to £16.1 million, higher than City expectations of £15.8 million.
Chairman Michael Carlton said: “Prezzo has continued to expand its representation throughout a range of locations across the UK in 2011 and I am pleased to announce another set of impressive figures.”
He said he has increasing confidence in its Chimichanga chain, which offers food such as fajita wraps, tortilla burgers and enchiladas. But the bulk of its business remains its Italian-style Prezzo eateries, where it has introduced a new menu featuring three types of pizza – classic, a lighter pizza served with a salad, or a bigger crispier pizza with more toppings.
The group was forced to increase prices last year to offset rising utility, wage and food bills but also put on promotions, such as online vouchers for two mains for £12.95, to help drum up trade.