Lounges

Loungers is a substantial and growing operator in the UK hospitality sector. As at April 2019, Loungers operates 146 sites in England and Wales across two distinct but complementary brands, Lounge and Cosy Club.

Founded in 2002 by three friends who wanted to create a neighbourhood café-bar that they would want to go to, the Group is now the only growing all-day operator of scale in the UK and has consistently outperformed the wider UK hospitality sector over the past three years.

STRATEGY

The Directors intend to continue to pursue an organic growth strategy, driven by the rollout of new Lounge and Cosy Club sites and an ongoing focus on operational improvements to drive further sales and margin improvements across the existing estate. This strategy is consistent with the strategy successfully executed by the Group over the past three years.

The Directors are targeting 25 new site openings per annum over the medium term, of which approximately 20 are expected to be Lounges and approximately five are expected to be Cosy Clubs.

LOUNGE

A Lounge is a neighbourhood café/bar combining elements of a restaurant, British pub and coffee shop culture. As at April 2019, there are 122 Lounges nationwide. Lounges are principally located in secondary suburban high streets and small town centres. The sites are characterised by informal, unique interiors with an emphasis on a warm, comfortable atmosphere, often described as a “home from home”. The Lounge estate has a consistent look and feel but each Lounge is individually named and tailored to the site and local area, and the design of each Lounge is continually evolving, meaning no two sites are the same.

The Lounge brand aims to have hospitality and familiarity at its core, driven by an independent culture and focus on the local community. Each site has its own social media presence and staff are encouraged to engage with the local community through events, charity and community groups. 80 per cent. of customers live locally (Source: November 2018 survey of 1,529 customers undertaken by consultancy firm Market Measures), underlining each Lounge’s local neighbourhood credentials.

Lounges appeal to a diverse customer base, offering something for everyone regardless of age, demographic or gender.

A Lounge represents something different to different people. For some it is somewhere to go for a coffee after the school run; for others it is a place to catch up with friends; a place for an informal meal, a celebration or a night out. 90 per cent. of Lounge customers visit for multiple occasions, 25 per cent. of Lounge customers visit at least weekly and two thirds visit every month, which demonstrates the versatility of the Lounge offering and the loyalty of the customer base.

Every Lounge offers all-day dining, with the same menu served from 9.00 a.m. to 10.00 p.m., everyday. Sales are well diversified across all day parts and days of the week as well as across all food and drink types. In addition to helping to drive repeat custom and maximise the trading efficiency of the sites, the all-day offering involves managing operational complexity, particularly in the kitchens, which the Directors believe is a meaningful barrier to entry for other operators.

Telephone
0117 930 9971

Website URL
https://thelounges.co.uk/

Type Of Business
Catering & Hospitality
Pub & Restaurant