The owner of Wagamama warned food and drink inflation is anticipated to be as high as 10 per cent this year, surpassing earlier estimations. In a trading update ahead of its AGM, The Restaurant Group (TRG) yesterday said its cost pressures had been exacerbated by the war in Ukraine. Food and drink inflation was now expected to be around nine to 10 per cent in the 2022 financial year, versus the above five per cent estimation provided at the group's full year results in March. While TRG said it would continue to work with supply chain partners to mitigate some of the impact, it cautioned that "this remains a volatile inflationary market". The firm said its financial position had improved, with net debt reducing by approximately £6m since the year-end. Investors took notice of the warnings, with shares down 2.3 per cent yesterday.

(c) 2022 City A.M., source Newspaper