Gaucho and M-owner Rare Restaurants is planning to expand by opening 30 new locations in the UK, following an “outstanding” 2023, which saw record sales.
Martin Williams, the company’s boss, speaking on the 2023 performance, said: “We have seen brilliant growth in cities, towns and local neighbourhoods alike.
“With a pipeline of 30 UK locations, we will continue to grow our brands in a sustainable manner, which echoes our commitment to continue to offer our best-in-class menus.”
Revenues reached £75 million during the financial year with the steakhouse company reporting like-for-like sales growth of 23% compared to pre-pandemic levels.
Underlying earnings margins are said to have lifted to above 20%.
New sites were opened in Newcastle, Covent Garden and Cardiff, with the latter two restaurants turning over around £200,000 a week.
However, the group closed M restaurants in Victoria and Canary Wharf, leaving only one site in London.
Hospitality expansions
Following years of site closures in the hospitality industry, Rare’s expansions represent just one of several managed companies growing their businesses, likely taking advantage of the free venue space left behind.
Earlier this month, both London-based Urban Pubs & Bars and Wagamama confirmed they would be targeting expansion in 2024.
The former opened up three new stores in the most recent financial year and renewed a £10 million overdraft facility to drive the growth of its stores.
Meanwhile, the recently purchased Asian food chain said it would be opening 10 new stores in the near term.
Additionally, US chains are expanding into UK highstreets with Wingstop (NASDAQ:WING) announcing its largest number of store openings since beginning operations in Britain.
Fellow American chicken chain Popeyes also announced it would be opening 30 new sites, including drive-thrus and takeaway kitchens, building on the 36 locations already in operation.