The popular cafe-bar and restaurant operator Loungers, which owns the Cosy Club and Brightside brands, has announced the creation of more than 900 new jobs in the UK over the past year. This significant employment boost comes as the company presses ahead with major expansion plans, despite a challenging period that saw it leave the London stock market and face rising operational costs.
Strong Growth in Revenue and Sites
According to newly filed accounts at Companies House, Loungers increased its total headcount from 8,631 to 9,557 in the year to 20 April 2025. The Bristol-headquartered business, founded in 2002 by Alex Reilley, David Reid, and Jake Bishop, also reported a robust increase in revenue, which climbed from £353.4m to £406.3m. This represents a sales growth of 15%, driven by both organic performance in existing venues and the full opening schedule of new sites.
The company, which was acquired by Fortress Investment Group for £338m and delisted from the AIM market in February 2024, ended the financial year operating 291 locations across England and Wales. Its ambitious strategy includes a plan to more than double its total estate in the coming years.
Profit Pressures and Future Confidence
Despite the impressive top-line growth, Loungers faced a squeeze on its bottom line. Its pre-tax profit was cut significantly, falling from £11.4m to £3.7m. The board attributed part of this pressure to the increased National Living Wage and higher National Insurance contributions introduced in April 2025, which placed a "significant additional cost burden" on the business and the wider hospitality sector.
Nevertheless, the company's leadership expressed strong confidence in its medium-term prospects. In a statement, the board highlighted that strong cash conversion allows growth to be funded from internally generated profits. They remain assured in the appeal of their all-day offering and are focused on improving profitability while continuing their expansion trajectory.
Chairman's Exit from Government Taskforce
The past year also saw political friction for Loungers' chairman, Alex Reilley. In August 2025, Reilley quit the government's Hospitality Sector Council (HSC) after facing backlash from civil servants for his public criticism of Chancellor Rachel Reeves' tax agenda. He had joined the taskforce earlier in the year to help rejuvenate high streets but stated that the Labour government was not taking sector concerns seriously enough.
Reilley also publicly criticised the government's plans to create "hospitality zones" intended to fast-track al fresco dining applications. Despite stepping down from the council, he reiterated his support for the group's overall aims.
Loungers' latest results paint a picture of a resilient business navigating post-pandemic realities, wage inflation, and political headwinds, yet firmly committed to growth and job creation across the UK.
