‘Volatile economic environment’ leads Kokoro to reassess expansion plans

The group, which operates around 70 high street sites across the UK alongside a handful of delivery-only kitchens, reported an increase in turnover in its latest financial results for the year ended 31 August 2023, rising from £9.3m to £12.7m.

However, it saw its profit before tax fall from £565,004 in the previous year to £29,727 amid pressures caused by a ‘volatile economic environment’.

As a result, the group has had to ‘reassess’ its expansion plans.

Writing in the group’s results, director Eun Gyu Ko said: “Kokoro will transition from pursuing aggressive growth to carefully monitoring the surrounding conditions and gradually solidifying the business strategy.”

Ko continued that the pressures exerted by the cost of living crisis, compounded by the increase in interest rates and rise in minimum wage, had forced Kokoro to implement price rises across its menu following the period’s end, which it said could potentially have a ‘negative impacts’ on sales figures going forwards.

“To navigate these challenges, Kokoro is focused on strategic measures including benchmarking against competitors, innovating menu offerings, and reinforcing customer service training protocols,” Ko added.