Ian McConnell: 'Difficult to overstate just how different these restaurants are'
Scotland’s largest independent restaurant group has this week shown that, while it might not be easy to make money given the headwinds facing the hospitality sector, it is not impossible.
That is not in any way to indicate a lack of sympathy for the many operators struggling amid what are undoubtedly major challenges but rather to take some heart from one of the success stories.
The DRG, the group behind the Café Andaluz and Di Maggio’s brands and now also the owner of the Paesano and Sugo outlets in Glasgow following an acquisition last year, highlighted its continuing ambitions for expansion as it unveiled a rebound in profits.
In particular, as reported exclusively in The Herald yesterday, it revealed in detail its plans to open more Paesano and Sugo outlets.
The DRG, owned by Mario Gizzi and Tony Conetta, achieved record annual turnover of nearly £50 million in its last full financial year.
It revealed it had achieved turnover of £49.52m for the year to April 2024, a rise of £3.68m on the prior 12 months. The group’s operating profit before exceptional items also increased, by £1.18m to around £6.23m.
In the year to April 2023, The DRG's turnover had increased by £1.458m to £45.838m, with operating profit before exceptional items falling by £3.7m to £5.04m.
Mr Gizzi made no bones this week about the extent of the challenges facing The DRG as he highlighted the strong performance which had enabled the rebound in profits.
He said: “Notwithstanding the ongoing challenges posed by the fall-out from the recent [UK] Government Budget, especially the hugely significant increase in the cost of labour, plus the legacy of Brexit and its impact on an extremely tight labour market, [and] increases in the cost of........
© Herald Scotland
