Indian street food chain Mowgli is back in profit amid an easing of inflationary pressures and the Liverpool business is set to continue its UK-wide expansion. Tony McDonough reports

Liverpool-based Indian street food chain Mowgli has returned to profit after soaring costs had pushed it into the red in the previous year and further expansion is planned.

Mowgli, founded by former barrister Nisha Katona, has posted its annual accounts on Companies House for the 12 months to July 31, 2024. They show a big rise in sales from £30.9m to £40.5m.

This was partly due to the number of restaurants operated by the business, rising from 21 outlets to 24 outlets during the accounting period. Pre-tax profits came in at just over £500,000 against £476,456 pre-tax loss in the previous year.

Similar to the rest of the hospitality sector, Mowgli had to contend with soaring energy and raw material costs in 2022 and 2023 as the UK saw double-digit inflation. Since then inflation has fallen significantly, easing the cost pressures on the sector.

In the accounts the company said: “The company saw sales growth in the year of 31% driven by new openings and underlying growth of the mature estate.

“The company operated 24 restaurants across the country at year end with leases secured or in negotiation for further openings in the coming years.

“Uncertainty remains around the broader economic outlook for the UK. The company believes that through delivery of an excellent and consistent offer, a compelling value proposition and effective management controls, it can withstand market pressures.”

It added: “The company continues with its expansion plans with a pipeline of future openings being developed following the investment by TriSpan in the prior year.”

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After practising as a barrister for more than 20 years, Nisha Katona opened her first Mowgli outlet in Bold Street in Liverpool in 2014.

She had already written three cookery books prior to this and was known as ‘the Curry Evangelist’ on YouTube. Before launching the first outlet she had vowed never to open a restaurant.

Other restaurants quickly followed, initially in the North West and now across the UK. Mowgli now employs more than 800 people at 24 venues across the country with Nisha vowing to continue expanding the business, possibly overseas.

She has considered cities such as New York, Amsterdam and Dublin for new restaurants. Nisha explained: “International growth is something that is looping in my mind. The food is fresh and good for you, and I think places need food like that.”

In January 2023 Nisha had sold a significant stake in the business to London-based investor TriSpan. Private equity outfit Foresight Group also sold its 24% stake in Mowgli. The deal was believed to value the firm at £25m to £30m.

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