Savor Group Reports Modest Recovery, Marks Restaurant Closures

In an annual shareholders meeting held in September 2024, Savor Group reported that its revenue had dipped about 8% year-to-date to August 2024. However, this figure has since narrowed to about a 5% decline year-to-date through December.

The latest trading update from the group highlights positive signs of recovery in the market. Group revenue for December was within 1% of the prior year, indicating ongoing market stability. Savor Group remains optimistic that this trend will continue through the financial year’s final quarter. However, due to uncertainties in various market indicators, the group cannot offer specific earnings guidance.

Restaurant Closures: Bar Non Solo and MoVida

During the New Year period, two popular dining venues in Auckland faced closure. Bar Non Solo and MoVida, both located in Britomart’s Seafarer building, ceased operations. This decision was made by Savor Group chief executive, Lucien Law, who confirmed the closures.

Bar Non Solo, a long-standing favorite in the area for the past 13 years, was situated on the Waitemata Harbour. MoVida, launched in late 2022 and led by chef Frank Camorra, was a Spanish eatery that had initially occupied the space from a previous restaurant called Ostro.

The closures were attributed to a failure to secure a new long-term lease agreement with the building’s landlord, Cooper & Co. Law cited six months of negotiations that ultimately did not lead to a favorable lease extension.

Despite the closure, the group expressed a positive sentiment towards the location’s contribution to its growth. The Seafarer building had generated over $80 million in revenue for Savor Group since Bar Non Solo’s opening, including the impact of the COVID-19 pandemic. Law stated that while the area has reached its peak in terms of contribution, it has been a fantastic site for the company.

A key takeaway from these closures was the group’s commitment to its employees. Savor Group offered new positions within the company to all staff affected by the closures, ensuring their continuity in the industry.

Looking Ahead

While Savor Group acknowledges the challenges in the dining market, it remains committed to its optimistic forecast. The modest recovery noted in recent months has provided a cautiously hopeful outlook for the business. However, the uncertainty surrounding future market conditions means that earnings predictions are postponed.

The closures of Bar Non Solo and MoVida, although setbacks, serve as a reminder of the evolving nature of the dining industry. Savor Group’s proactive approach to staff retention and the business’s broader commitment to recovery should be viewed as positive steps forward.

Savor Group will continue to monitor market trends and adapt its strategies accordingly to navigate the often volatile landscape of the restaurant sector.

As the year progresses, Savor Group will continue to be a significant player in the local dining scene, adapting and growing alongside the market.

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.

Join the conversation! Share your thoughts on Savor Group’s trading update and the closures. Comment below, subscribe to our newsletter for weekly updates, or follow us on social media for the latest news.