Burger & Lobster claws its way back to profit

Burger & Lobster has hailed a “resilient” performance after recovering from a £10 million loss to post a profit in 2017.

The chain closed four UK restaurants to focus on London and international expansion during the period.

Net profit came in at £2.4 million, compared to a loss of £10 million in 2016 following a series of changes including adjustments to the menu.

The business said a new range of starters and improved drinks offering had increased spend per head by 2%.

Turnover decreased by 4% to £42.2 million.

B&L reduced costs through closures and disposals, as well as changing supplier relationships to reduce wastage.

Underlying earnings also rose to £6.2 million versus £2.7 million in the prior period.

The news comes as a welcome bright spot for the restaurant industry, which has faced a combination of rising costs and tough competition this year. Dining chains including Byron, Jamie’s Italian, Prezzo and Carluccio’s have all slashed sites in a bid to cope with market challenges.

“Burger & Lobster is an example of how a restaurant brand can remain resilient in challenging times for the high street,” said founder Misha Zelman.

“We’ve turned this business around because of the people within it. We can now look forward positively, continually evolve what we have in London and begin to grow the business in some of the most exciting places in the world, including China, the United States and Hong Kong, in a format that we know works well for us and, more importantly, our customer.”

As part of its focus on London, B&L has plans to open a new concept called Shack in Camden. The venue will serve a simplified menu of burgers and lobster rolls, with prices starting under £10.

B&L said it is now using London as a “test kitchen” for concepts which it can roll out internationally. It plans to have two more sites in the US by 2020 as well as expanding further in Singapore, Hong Kong, Canada and China.