Sales leap at Bill's Restaurants, but higher costs cause slimmer profits

Richard Caring-backed Bill’s Restaurants on Wednesday cheered a sales jump, but warned of biting competition and higher costs as it posted a fall in profits.

The 80-strong chain, which is majority owned by restaurants tycoon Caring, grappled with “significant” increases in food costs and higher wage bills in the year to July 2017.

Its update comes a day after rival Pizza Express warned of “industry-wide cost pressures in the UK”. A number of businesses have recently warned of weaker consumer sentiment.

Bill’s Restaurants’ strategic report also referred to continual new entrants to the market, especially in London and the South-east.

Despite the difficulties, it invested in expanding with openings, and in January it appointed former Punch Taverns’ boss Duncan Garrood to lead the 18-year-old company.

Profits fell to £3.5 million from £5.8 million. However, turnover rose 7% to £118.6 million at the firm which has 21 London branches.

A Bill’s spokesman said the results were “encouraging” and in line with expectations.

He added: “We are refurbishing restaurants across the country and have introduced a new menu that has been very well received.”

Separately this week, Caring’s restaurants group Caprice Holdings reported a 37.9% hike in sales to £67.1 million for the 53 weeks to January 1 2017.

The owner of Sexy Fish and The Ivy saw pre-tax profits increase to £8.7 million from £2.2 million.