Wahaca says strong delivery arm could help it survive possible future lockdowns
Wahaca co-founder Mark Selby has said the group's strong delivery arm could help it survive possible future coronavirus lockdowns or restrictions without the need for further restructuring.
In accounts for parent company Oaxaca, he said the directors were "very pleased" with the Mexican restaurant group's performance in the year ended 27 June 2021.
Selby said Wahaca had developed a delivery channel during the pandemic which helped mitigate the impact of the second and third national lockdowns on restaurant sales, and could do so again if needed.
Wahaca underwent a company voluntary arrangement (CVA) in late 2020, which saw the permanent closure of 12 restaurants. Lenders and shareholders wrote off £25m in debt and £5m was injected into the business.
For the year ended 27 June 2021 Wahaca's turnover halved to £17.7m but net profit before tax was £25.7m, compared to a loss of £17m in the previous 12 months. Adjusted operating profit was £2.2m, up from a loss of £1.3m in 2020.
Selby wrote: "The restructuring actions that the group has undertaken have however left the business with a solid financial platform from which to grow.
"The directors continue to be fully confident that the brand love and recognition remain very strong, and are excited about the future opportunities that are presenting themselves."
Wahaca was founded by Selby and MasterChef winner Thomasina Miers in 2007 and at one point grew to 27 locations nationwide.
The business trades from 17 sites under the Wahaca and DF Tacos brands in London, Cardiff, Brighton and Edinburgh.
Image: Matthew Talboys / Shutterstock
Continue reading
You need to create an account to read this article. It's free and only requires a few basic details.
Already subscribed? Log In
