Hard Rock Cafe UK secures extended financial support from parent company

Hard Rock Cafe UK has secured an extended financial lifeline from its parent company as coronavirus restrictions continue to impact trading.

Accounts for the UK arm of the chain, which has sites in London, Manchester, Newcastle, Glasgow and Edinburgh, said it had received confirmation of continued financial support from its US parent firm to allow it to keep operating for at least the next 12 months.

The group said it was difficult to predict the impact of coronavirus on its brands and future prospects as it had never previously experienced such a prolonged disruption of its operations.

Hard Rock UK saw transactions at its restaurants decline 67% in 2020, while retail transactions were down 81%. The company reported a £10.4m pre-tax loss in 2020, compared to a £1.1m loss in 2019.

The business said it aims to grow its revenues to pre-pandemic levels within the next two years.

Writing in its accounts, the groups directors said changes to the UK immigration system after Brexit were a "massive blow" to the hospitality industry, with the situation worsening due to Covid, and warned predicted food price rises will have a "significant impact" on profit margins going forwards.

However, it said a reported increase in UK staycations and higher European holiday prices as a result of Brexit could cause a spike in UK tourism to benefit the hospitality industry.

The world's first Hard Rock Café opened near London's Hyde Park in 1971 and Hard Rock International now has venues in 68 countries worldwide.