Rivals take a bite out of Planet Hollywood turnover and profits
Planet Hollywood, the restaurant launched by superstars Bruce Willis, Arnold Schwarzenegger and Sylvester Stallone, has said that mounting competition among theme restaurants was hitting profits. Planet Hollywood recently opened its first restaurant in Dublin.
The group, currently planning to open an All-Star Cafe sports chain in Britain, with golfer Tiger Woods, admitted rivals had bitten into its market share. Planet Hollywood, based in the US, said it would fail to meet analysts' expectations in the fourth quarter with worldwide sales falling by around 13 per cent.
The profits warning sparked fears that other established theme chains would also suffer from the entry of new competitors in the market such as Fashion Cafe, Rainforest Cafe and Sports Cafe.
Planet Hollywood said it expected to report a turnover of £61 million sterling, compared with analysts' expectations of £79 million.