Key facts
- Itsu has posted its third consecutive annual loss.
- The company attributes rising costs to surging inflation and Labour's increases to employment taxes.
- Itsu's revenue grew 2.8% to £124m, with its pre-tax loss narrowing to £5.2m.
- The chain refurbished 20 shops in 2025 to improve customer flow and service.
Itsu has reported its third consecutive annual loss, with the Asian food chain attributing the financial downturn to surging inflation and increased employment taxes imposed by the Labour party. The company's directors highlighted fragile consumer confidence and a rising tax burden as significant challenges facing the UK's fast food industry.
In its latest accounts, the group's directors stated that the industry "continued to face pressured customer volumes as consumers managed persistent inflation and higher interest rates." They added that "Policy-driven cost increases (including the change in employers’ National Insurance rates) added to wage and food cost inflation."
Retailers and hospitality firms have expressed concerns that Labour's increases to employer national insurance contributions, implemented at the 2024 Budget, continue to hinder their ability to hire staff. Industry bodies have called on Chancellor John Healey to reverse these measures. Itsu specifically noted that "Pay levels and related employment costs increased during 2025, with additional pressure from the change in employers’ NI rates," which "weighed on margins."
Despite these pressures, Itsu managed to grow its revenue by 2.8% to £124m, while its pre-tax loss narrowed to £5.2m from £6.7m in the prior year. The company is investing in its sites to drive customer spending, having refurbished 20 shops in 2025 with improved layouts to enhance customer flow and service. These upgraded shops are mandated to have a minimum of two tills and feature fridges moved closer to the door to encourage grab-and-go purchases.
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