Restaurant vouchers are impacting on net margins, says Clapham House

30th September 2009, 11:09am

Clapham House has said that despite a general sense that restaurant vouchers are encouraging diners to eat out more during the recession they are impacting negatively on the company's net margins.

David Page, Clapham House chairman explained more about the restaurant group's trading environment: "Revenue across the Group in the first half of the financial year to March 2010 is some 2% higher than in the same period last year. In the UK our trading environment and outlook remain challenging, especially in our Tootsies business.

"The restaurant industry continues to see widespread discounting and promotional activity with consequent impact on net margins."

He added that the business opened its 50th Gourmet Burger Kitchen (GBK) restaurant in the UK at Clink Street on London's South Bank and that the approach to new openings remains cautious.

Internationally, Clapham House continues to grow. Page said: "Our franchise partners have opened two new GBK restaurants in the Middle East in the first half, taking the total number of GBK restaurants overseas to 13. In addition, in July we signed a new franchise partner for the development of GBK in Greece, where the first restaurant is expected to open before the end of the year."

Related Articles:

• 10 Nov 2009 - Over 520 restaurant operators will finish 2009 in financial difficulty
• 02 Oct 2009 - Restaurants must start to wean customers off discount vouchers
• 27 Aug 2009 - 'No shame in using restaurant vouchers'
• 18 Aug 2009 - Web searches for restaurant vouchers increase 226%
• 29 Jul 2009 - US tourists waste money when eating out in the UK
• 07 Jul 2009 - Clapham House Group continues to perform well
• 06 Jul 2009 - Posh nosh falls victim to voucher discounts
• 01 Apr 2009 - Gourmet Burger Kitchen looks to expand
• 27 Mar 2009 - Restaurant executives gear up for industry summit
• 18 Feb 2009 - Clapham House joins carbon management scheme
• 10 Dec 2008 - Clapham House posts tasty profits

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Diana Horner

02 October 2009 at 3:30pm

Discount vouchers will impact on net margins, without question - however "Restaurant Vouchers" in the form of gift vouchers can be a powerful tool. New customers will take the opportunity to try you. However, the gold lies in your existing customer base. Encourage them to ask loved ones for your gift vouchers. You could double their visits in one year. Most people spend more than the gift value, and may also bring others with them. I have a vested interest – we offer a full gift service to independent restaurants and small groups. However, my advice is the same to the larger groups! I love the restaurant business, and this seems to me to be good business sense - even without my RestaurantGifts.com hat on :)

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