Bristol-based café-bar chain Loungers believes it will emerge strongly from the Covid-linked trading restrictions of the past year due to “significant pent-up demand” from the public to eat and drink in its laid-back venues again.
The group, which operates 173 neighbourhood venues across England and Wales under the Lounge and Cosy Club brands, said it was encouraged by the initial strength of its trading performance since being allowed to reopen. 
In a trading update to the London Stock Exchange, it said it had opened 88 sites to trade outdoors only following the initial relaxation of restrictions on April 12.
“Whilst the weather made this challenging at times, outdoors trading allowed for a phased and controlled re-opening of the estate,” it said.
The group then re-opened all its sites after the further relaxation on May 17 allowing indoors trading.
This included resuming the rapid growth of its estate by adding a further five Lounges in Wolverhampton, St. Ives, Stourbridge, Welwyn Garden City and Blackpool during the period from April 19 to June 13.
Like-for-like sales over the four-week period from May 17 to June 13 were up 26.6% compared to the equivalent period in 2019, it said.
It added: “Whilst these are still early days, and trading has benefitted from significant pent-up demand and the VAT reduction, we are encouraged by the initial strength of our trading performance and remain confident the company will emerge strongly from this period.
Chief executive Nick Collins, pictured, added: “I am really pleased with how the business has re-opened and our trading performance has once again demonstrated the resilience of both the Lounge and Cosy Club brands. Customers have returned with confidence and our team have performed amazingly. 
“Whilst the government’s recently announced decision to leave the remaining restrictions in place for a further four weeks is disappointing for the hospitality sector as a whole, we look forward to a return to normality on July 19.”
The group’s early success came from opening neighbourhood café-bars on Bristol’s busy suburban streets that attracted a wide variety of customers throughout the day and into the evening.
This approach, honed in Bristol suburbs such as Fishponds, Westbury-on-Trym and on Gloucester Road – where it found a ready market for its ‘home-from-home’, laid-back venues – was repeated in towns and cities across the country. Its Cosy Club outlets were later added as city centre venues.
It will publish its preliminary results for the year ended April 18 on July 21.
