Sales to plunge 80% for Upper Crust and Caffe Ritazza owner
SSP Group predicts passenger numbers will rise again as Covid-19 vaccination programme continues
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Your support makes all the difference.Travel food specialist SSP Group has warned that sales are to plunge by 80 per cent in the first quarter, after it suffered a huge annual loss due to the coronavirus pandemic.
The group’s food and drink sites — including Upper Crust and Caffe Ritazza — are based in airports and railway stations, which have seen a dramatic reduction in passengers over the course of past year.
The pandemic sent the group crashing to a £425.8m loss over the year to 30 September against pre-tax profits of £197.2m in the previous year.
SSP saw sales plummet by as much as 93 per cent in its third quarter to the end of June, but eased back slightly to a still-steep 80 per cent drop in its final quarter.
The group reopened more than a third of its sites over the summer, but further lockdowns and restrictions since its year end forced stores to close again, with those open dropping to 950 worldwide currently.
It said that passenger numbers are set to remain volatile throughout its first half as travel restrictions and reluctant passengers continue to plague the industry - but the group is optimistic that passenger numbers will return with the continued rollout of the Covid-19 vaccination programme. Shares in the group fell more than four per cent.
Simon Smith, chief executive of SSP Group, said in a statement: “Whilst we expect passenger numbers to remain subdued over the winter, we are optimistic that alongside good progress with the vaccination programme, we will see a significant upturn in both domestic and international travel from the spring.
“We are ready to respond quickly.”
The firm created a more flexible operating model by “renegotiating rents, rationalising our menus and reducing our unit overheads”, added Mr Smith.
SSP Group warned earlier this year that up to around 5,000 jobs out of its 9,000-strong peak season workforce are at risk, as it looks to cut costs in response to the pandemic.
Prior to the global public health crisis, SSP’s sites served around 1.5m customers everyday at about 180 airports and 300 rail stations in 35 countries globally, and operated more than 550 brands across about 2,700 sites.
Additional reporting by PA
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