The claim was for a ’breach of a contract for insurance for losses arising in 2020’

Restaurant group Tasty has secured millions of pounds after agreeing a settlement with its insurer over a Covid-19 pandemic-era claim.

In a Stock Exchange announcement, Tasty said its claim was for a “breach of a contract for insurance for losses arising in 2020”.

It has now agreed a £2.5m settlement with its insurer, which is payable within 21 days. Due to creditor costs and legal costs, the group expects to receive a net sum of £1.5m.

Tasty made the announcement as it warned that trading conditions had remained tough across the restaurant sector.

It said: “The casual dining market continues to contend with several adverse factors, including a decline in consumer confidence and a discernible decline in discretionary spend, inflationary pressures on food, increases in the national minimum wage and following the UK government’s budget in October 2024, an increase in employers national insurance contributions from April 2025.

“Trading in H2 2024 continued to be challenging, and in particular, the key December period has been disappointing.”