The Japanese noodle and tempura restaurant chain, which announced a master franchise agreement with Karali Group, in April this year, said the £1.2m reduction in turnover “mainly reflects the closure of the Bromley site in December 2023 and the closure of St Christopher’s Place restaurant in August 2024.
Adjusted EBITDA for the period improved from a loss of £4.1m in 2023, to a loss of £3.2m in 2024, reflecting tighter cost controls and operational efficiencies despite the reduction in sales, it said in accounts filed on Companies House.
The company recorded a net loss for the period of £5.1m, versus a loss of £6.9m the previous year.
The directors of the business said they were satisfied with the performance achieved given the site closures and challenging trading environment and they continue to focus on stabilising the business and improving profitability.
The business intends to continue its strategy of expansion and innovation to meet evolving customer preferences and broaden the company’s footprint, specifically through the continual evaluation of potential new restaurant sites across the UK, both in major city centre and regional locations, with the objective of increasing accessibility of the brand.
“It plans to pursue growth through a mix of company-owned and franchised sites, under its recently-agreed master franchise model, which is expected to accelerate roll-out and reduce the capital intensity per new site.”
Marugame Udon said it would continue to invest in digital and operational innovations including improvements to its order and delivery platforms, loyalty programmes, mobile/online ordering and in-store tech.
“The company also expects to refine its restaurant design and branding approach, guided by guest feedback, to ensure consistency of experience and maximise operational efficiencies in new and existing locations,” it said. “These developments are expected to position the Company for sustainable growth over the next one to three years.”