The Restaurant Group – formerly City Centre Restaurants – has revealed its strategy of growth through developing its leisure parks and concessions businesses is paying off.

Pre-tax profits for the year to 31 December 2003 were up 15 per cent to £19.3m, with like for like sales at Frankie and Benny’s leisure park units up 7 per cent and concessions sales up 14 per cent on 2002.

“Our development strategy, first implemented in late 2001, has served the group well and has resulted in enhanced returns and a strengthening of the group’s finances,” said executive chairman, Alan Jackson. “The group now occupies strong market positions in two of its three key business segments.”

Group like for like sales for the year were up 3 per cent overall, pulled down by tougher trading at the company’s High Street sites, which saw like for like sales growth of just 0.2 per cent.

“High Streets experienced another challenging year and I am delighted that the group has been able to improve its position against a background of significant restaurant supply and an increasingly demanding customer base,” said Jackson.

“Despite suffering a 1 per cent fall in turnover, the business recorded a modest improvement in operating profit.

“During 2003, we continued to invest in our High Street units in order to improve their competitive position.”

Last December, the group entered merger talks with ASK Central, making an offer of £168m for the pizza and pasta chain. However, this was trumped by a takeover vehicle representing PizzaExpress owner, TDR Capital and Nando’s International owner, CVI which offered £212.9m.

“Whilst we firmly believed that a combination of The Restaurant Group and ASK would have produced a formidable national restaurant group, we were not prepared to jeopardise the excellent progress made over the past two and a half years by increasing our offer price,” said Jackson.

So far in 2004, like for like sales to 14 March are up 2 per cent and the group plans to open more than 20 new units, including 11 new Frankie & Benny’s, this year.

In January, the company, which also operates the Chiquito, Garfunkel’s, Caffé Uno and Est Est Est brands, completed a share placing which raised £13.4m.