UK

Famous Brands operates the Casual Dining Restaurant Brand Wimpy in the UK.

Trading conditions

The UK began 2021 in a lockdown period where restaurants could only offer delivery and take away services. Lockdown measures were eased in May 2021, allowing indoor hospitability to re-open with social distancing measures in place. In July 2021, all restrictions were lifted, including social distancing, allowing restaurants to operate without any seating limits.

The UK restaurant industry faces challenges due to significant utility price increases, rising food inflation, supply chain disruptions, fuel cost increases and poor labour availability.

Performance and focus areas

The UK recorded revenue of R133 million (2021: R112 million) and operating profit improved 18% to R17 million (2021: R14 million) before an impairment loss. The operating margin for the year was 12.8%, indicating no change from 2021 before impairment to goodwill. Delivery sales declined reflecting that more customers had returned to dining in restaurants.

While the pandemic placed additional pressure on the UK restaurant industry, Wimpy maximised trade through all available channels. Famous Brands continued to support its franchisees. Focus areas included digital marketing, especially digital social activity and national in-store marketing campaigns. This marketing drive assisted in boosting sales.

The Wimpy team maintained a consistent level of supply to restaurants despite supply chain issues and shortages of both food products and paper products within the UK.