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Wildwood restaurant chain owner Tasty said on Tuesday it would open around 86% of its estate this month having cut its workforce by more than 30%, as it considered an equity raising and warned of a “challenging” market.
The firm said it remained “extremely cautious” regarding trading in September and was continuing to explore ways to minimise costs and strengthen its balance sheet, including the possibility of new debt and/or equity capital.
Tasty said it was going ahead with its phased reopening in order to take advantage of the government’s ‘Eat Out to Help Out’ scheme, which gives diners the opportunity to enjoy 50% off their meals at participating restaurants.
It was created as a bid to encourage the public to support the hospitality industry by going out to eat at local restaurants. Finance Minister Rishi Sunak also cut sales tax temporarily to 5% from 20% to help the hospitality sector.
The company said it was still in talks with landlords and trade creditors to reduce current and future liabilities.
“The company has experienced a positive level of sales this month to date, temporarily supported by the increase in people staying in the UK this summer, government initiatives and pent up demand following the relaxation of lockdown restrictions since March, however, the board expects future trading to remain challenging,” Tasty said.
AIM-listed Tasty expected to have up to 48 sites trading in August, but warned most of its remaining restaurants were not scheduled to re-open “for the foreseeable future” and added that some which were currently open may need to close again if they failed to hit expected trading levels.
As of 1020 BST, Tasty shares were down 5.65% at 2.17p.
(Writing by Frank Prenesti. Editing by Michele Maatouk)
