>
Strong brands
nationwide
The Restaurant Group plc 
Annual Report 2006
The Restaurant Group plc 
5-7 Marshalsea Road
London SE1 1EP
Tel: 0845 612 5001
www.trgplc.com
The Restaurant Group plc Annual Report 2006 The Restaurant Group plc operates 284
branded restaurants predominantly in leisure
locations and airports. Its primary brands 
are Frankie & Benny’s, Chiquito, Garfunkel’s
and Blubeckers.
Contents
01 Highlights
02 At a glance
04 Chairman’s statement
06 Chief Executive Officer’s 
review of operations
12 Group Finance Director’s review
16 Directors
18 Report of the Directors
24 Directors’ remuneration report
30 Report of the independent auditors
32 Accounting policies for the 
consolidated accounts
35 Consolidated income statement
36 Consolidated statement 
of changes in equity
37 Consolidated balance sheet
38 Consolidated cash flow statement
39 Notes to the accounts
57 Company balance sheet – 
under UK GAAP
59 Group financial record
60 Shareholder information
Designed and produced by                       www.collegedesign.com This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Operating and financial review
Highlights
Adjusted EPS (p)
16
2003 2004 2005 2006
14
12
10
08
06
04
02
6.66
7.84
9.08
11.50
Dividend per share (p)
08
2003 2004 2005 2006
07
06
05
04
03
02
01
Adjusted profit before tax (£m)
40
2003 2004 2005 2006
35
30
25
20
15
10
05
> Incorporating strong 2nd half
year sales, total like-for-like
sales were +5% for 2006
> Further good progress in
margin growth with adjusted
operating profit margin
increasing 140 basis points 
to 12.5%
> Cash generated from
operations up 14% to £63m
Leisure (235 units)
Frankie & Benny’s (139 units) 
> EBITDA and operating 
profit grew more than 20%
> 25 new units opened 
during 2006 including 
nine Little Frankie’s
> Returns from new units
compare favourably with
earlier years’ openings
> Strong pipeline with 
15 – 20 to open in 2007
Chiquito (45 units)
> Highest like-for-like sales 
and operating profit growth 
in the Group
> EBITDA +38%, operating
profit +44%, operating profit
margin up 120 basis points
> 11 new restaurants opened
during 2006
> 5 – 10 new restaurants to
open in 2007 
Garfunkel’s (29 units)
> Strong like-for-like sales;
operating profits up 15%
> Operating profit margins 
up 140 basis points
> Refurbishment programme
delivering strong sales growth
Blubeckers (22 units)
> Strong like-for-like growth
> Five units opened in 2006,
including one conversion
> Pipeline building with 5-10
new units to open in 2007
Concessions (49 units)
> Very pleasing performance 
> Solid like-for-like performance
and six new openings
increased sales 21%
> EBITDA +23%, operating
profit +24%, operating profit
margin up 40 basis points
> Between two and five new
concessions for 2007,
building work for Terminal 5
to commence in 2007
Current trading
> Like-for-like sales for 
the first nine weeks +5%
>
+1 1 .3%
>
+26.6%
>
+ 1 8.5%
>
+26.3%
Adjusted EBITDA
Adjusted EBITDA grew by 11.3% 
in 2006 reflecting the strong cash
generative performance of the business
Adjusted earnings per share
Adjusted earnings per share increased
by 26.6%, evidence of the success 
of the focused Group
Adjusted profit before tax
Following on from a 21% increase in
2005, this is a very satisfactory result
Proposed full year ordinary dividend
The Directors propose a final dividend 
of 4.95p per share to be paid on 
4 July 2007 making the full year 
dividend 6.00p per share 
The Restaurant Group plc 
Annual Report 2006 01
* Results are stated excluding non-trading items and excluding the
results of Deep Pan Pizza in the prior year comparatives. Further
information is provided in note 2 of the financial statements.
19.3
24.4
29.5
35.0
3.65
4.20
4.75
6.00
Adjusted EBITDA (£m)
80
2003 2004 2005 2006
70
60
50
40
30
20
10
36.8
43.3
50.0
55.6 Operating and financial review
At a glance
An unbeatable combination
of classic American &
traditional Italian dishes
Among the most popular family
restaurant brands in the UK
today, Frankie & Benny’s now
trades successfully in leisure,
retail and airport locations
nationwide. It remains a
favourite with families, couples,
friends and business diners.
Frankie & Benny’s brings
together the best of classic
American-Italian style cuisine.
Alongside favourites including
char-grilled burgers, steaks,
pizza and pasta are house
specialities such as chicken
parmigiana, BBQ ribs and
seafood dishes. Inside, Frankie
& Benny’s has the atmosphere
of a favourite family-run
restaurant. From the clear view
of the open kitchen to the bottle
lined bar, it takes you back to
1950’s New York. Take a seat 
in a cosy booth and look at the
family snapshots showing life 
in the Lower East Side of the
Big Apple. Music is classic 50’s
American swing. With more
than 130 outlets across the 
UK, Frankie & Benny’s delivers
a family restaurant appealing
and familiar to everyone.
> Frankie & Benny’s
>
Growing 
our brands
>
+25
Frankie & Benny’s opened 25 new
restaurants in 2006 (including nine 
Little Frankie’s) and will open 
a further 15-20 in 2007
new restaurants
The Restaurant Group plc 
Annual Report 2006 02
> Our locations
Scotland 27
13 Frankie & Benny’s
04 Chiquito
09 Garfunkel’s
01 TRG Concessions
Midlands 35
25 Frankie & Benny’s
07 Chiquito
03 TRG Concessions
North West 34
21 Frankie & Benny’s
09 Chiquito
04 TRG Concessions
Wales 06
04 Frankie & Benny’s
02 Chiquito
South West 16
10 Frankie & Benny’s
05 Chiquito
01 Garfunkel’s
South East 78
25 Frankie & Benny’s
09 Chiquito
19 Blubeckers & Edwinns
25 TRG Concessions
London 24
01 Frankie & Benny’s
01 Chiquito
19 Garfunkel’s
03 TRG Concessions
East 35
19 Frankie & Benny’s
02 Chiquito
03 Blubeckers & Edwinns
11 TRG Concessions
North East 26
18 Frankie & Benny’s
06 Chiquito
02 TRG Concessions
In addition, the Group operates 3 restaurants outside the UK
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
The best of traditional
Mexican and Tex-Mex cuisine
With its unique blend of sizzling
food and cooling margaritas,
Chiquito takes you across the
Rio Grande! Now with well over
40 outlets, Chiquito features 
a sunny, spicy extravaganza of
Mexican cuisine, tasty Tex-Mex
and classic American favourites,
all served in a fun and lively
atmosphere. There are burritos,
chilli, nachos, wraps and
meatballs – never forget the
famous sizzling fajitas, smoking
on a red-hot skillet! Or you can
overload on Texas BBQ ribs,
juicy burgers or steaks. The
Kids’ Menu offers a wide range
of (less spicy) dishes for
children that are tasty and
nutritious, ensuring that
Chiquito appeals to all ages.
The bar showcases signature
margaritas, classic tequilas and
cocktails alongside refreshing
ice-cold beers and soft drinks.
Cantina-inspired interiors and
lively Latin American music add
to the atmosphere, whether you
visit for lunch, a lazy afternoon,
an exciting evening, a family
party or fiesta occasion!
> Chiquito > Blubeckers > Garfunkel’s > TRG Concessions
Legendary & Loved
How many restaurant brands
have traded successfully in 
the UK’s most competitive
locations for more than 25
years? Garfunkel’s provides 
the reassurance of a familiar
face, well-known for its quality
of service, great menu choice 
and affordable prices. The
menu features favourite 
dishes from around the globe,
including a range of steaks,
burgers, pasta, chicken, grills,
omelettes and the famous
salad bar. Whether you want
coffee and a pastry, breakfast,
lunch, a light snack, afternoon
tea, dinner or just a relaxing
drink while you watch the world
go by, you will always receive a
warm welcome at Garfunkel’s.
Our Concessions division has
an established reputation for
its ability to deliver catering
solutions across a range of
market sectors
Operating in the UK’s busiest
airports and shopping centres,
TRG Concessions has over 
15 years of experience with a
diverse brand portfolio covering
a wide range of market sectors
including table service, counter
service, sandwich shops, pubs
and bars. Using existing TRG
brands, creating entirely new
brands and establishing
partnerships to franchise with
third parties, we are established
operators delivering excellence
through a clear understanding
of the unique trading patterns
within these specialised areas.
Currently operating at seven
major UK airports, and within
shopping centres and railway
stations, our Concessions
Division is creating new and
exciting dining experiences. 
We are a market leader in this
exciting sector.
>
+44% +5
>
27
>
+24%
Chiquito saw the highest rate of growth
in the Group for like-for-like sales and
operating profits
Added to our Blubeckers and 
Edwinns portfolio
Still popular and successful after 
27 years, Garfunkel’s saw increased
revenues and profits in 2006
Despite challenging operating conditions,
the Concessions team delivered an
impressive 24% growth in operating
profit in 2006
increase in 
operating profit
new restaurants years and 
still improving
operating profit growth
in Concessions
The Restaurant Group plc 
Annual Report 2006 03
Friendly people serving
fresh food in delightful
surroundings 
Friendly, professional service
from the moment you arrive,
ensuring that all your needs
are taken care of. Our chefs
are busy, from early each
morning to the last pudding 
of the night, preparing
fantastic food using the best,
freshest ingredients we can
find. The menu combines
traditional favourites with
contemporary influences.
Seasonal & local specials
regularly feature, but our
signature burger and ribs 
have been there since Day 1!
Blubeckers mixes the best of
the past with the best of the
present to create a relaxing,
welcoming restaurant for 
every day. 
Edwinns Brasseries are 
known for attentive service 
and creative menus featuring
traditional English food with 
a contemporary twist. Taken
together, Blubeckers and
Edwinns provide TRG with a
platform to develop into an area
of the eating out market which
is set to appeal to an increasing
number of customers.
> Operating and financial review
Chairman’s statement
The Restaurant Group plc 
Annual Report 2006 04
“2006 was, in many ways, 
a watershed year for The
Restaurant Group – the first 
full twelve months of trading 
in its new form. These results
demonstrate the strength and
potential of our business and
our brands.”
Alan M. Jackson
Chairman
>
Prospering in a
challenging marketplace
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. I am delighted to report that the Group has enjoyed another
successful year of profitable growth. 2006 was, in many ways, 
a watershed year for The Restaurant Group – the first full twelve
months of trading in its new form. You will recall that 2005 was 
a year of considerable change for the Group on the corporate
front, as we continued to direct our focus away from the
increasingly crowded high street marketplace and positioned 
our business firmly in the out of town segments of the eating 
out market. This was in line with our strategy of focusing on
markets with distinct barriers to entry, good growth prospects 
and high returns on investment. The impact of these changes 
is clear to see in this set of results. 
For 2006 we delivered a like-for-like sales increase of 5% which
was a fantastic performance. As a result, our adjusted profit
before tax grew by 19% on the prior year. In addition, our strong
cash generation enabled the Group to add 47 new restaurants
(including rebranding former DPP units) to its portfolio during the
year, taking the total number of outlets to 284. 
Building on a strong first half performance we made further good
progress during the second six months to produce excellent full
year results. Full year adjusted pre-tax profit increased by 19% to
£35.0m (2005: £29.5m) with turnover from our principal trading
brands increasing by 24% to £308.7m (2005: £248.8m). Adjusted
earnings per share increased by 27% to 11.50p (2005: 9.08p). 
As a result of this excellent performance the Board is
recommending an increased final dividend of 4.95p per share
(2005: 3.84p), an increase of 29%, giving a total dividend for 
the year of 6.00p (2005: 4.75p) per share. Subject to approval 
at the Annual General Meeting, the final dividend will be payable
on 4 July 2007 to shareholders on the register on 8 June 2007
and the shares will be marked ex-dividend on 6 June 2007. As
detailed in my interim statement, we also paid a special dividend
of £34.8m during the first half of the year. 
Our Leisure Division which incorporates Frankie & Benny’s,
Chiquito, Blubeckers and Garfunkel’s enjoyed another excellent
year, recording a 27% increase in operating profit. All of the
brands delivered strong like-for-like growth during 2006 and we
look forward to a continuation of this trend in 2007. During the
year we opened 41 new restaurants in this division and we expect
to open approximately 30 more units in the Leisure Division during
2007. Our new openings are performing well and we continue to
enjoy high levels of return on investment. The performance of 
our co-located units (Frankie & Benny’s and Chiquito) has been
particularly pleasing and we believe that there is scope to continue
this pattern of dual roll-out. 
Our Concessions Division delivered a terrific set of results with
operating profits for this division increasing by 24%. Against a very
challenging backdrop for parts of 2006, this was an outstanding
performance. We opened six new units during the year and we
are pleased with the initial performance. This year we expect to
open a further 2-5 new units in the Concessions Division. 
During 2006 we concluded the conversion programme for 13 
of the DPP sites which we acquired in early 2006 and the results
from these have been pleasing. The remaining sites have been, or
will be, sold or closed. Although the performance of our associate
company, Living Ventures, was disappointing we are encouraged
that the actions being taken by their management are beginning 
to impact positively on performance. Notwithstanding this, we
have made a provision of £9.5m against our carrying value of the
loan note, which has no cash impact, following an impairment
review of our investment and loan note.
Overall, this is an outstanding set of results and demonstrates
both the strength and potential of our business and its brands.
However, none of this would have been possible without the hard
work and dedication of our senior management team and staff.
We have a fantastic team at The Restaurant Group and on behalf
of the Board I would like to thank them all for their valued
contribution over the past year. 
We have started the current year well, with like-for-like sales 
for the first nine weeks 5% ahead. This year our target will 
be to open 30-35 new restaurants, we will be seeking to 
deliver further improvement in margins and our people will be
looking to match or exceed the expectations of our customers
and shareholders. 
I am confident that we will continue to make further good 
progress during the coming year. 
Alan M. Jackson
Chairman
4 April 2007
The Restaurant Group plc 
Annual Report 2006 05
Frankie & Benny’s Gunwharf Key
A real jewel in the crown.
Blubeckers, Sevenoaks
The latest addition to the estate.
>
+5%
Our like-for-like sales growth is a key
performance indicator and this growth
demonstrates the continuing appeal 
of our brands
like-for-like sales growth
* Results are stated excluding non-trading items and excluding the results of Deep Pan
Pizza in the prior year comparatives. Further information is provided in note 2 of the
financial statements.
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. >
Focused on 
our core business
Operating and financial review
Chief Executive Officer’s 
review of operations
“2006 was a very satisfactory
year for The Restaurant Group
with earnings increasing by
27% on the previous year. 
Our strategy is designed 
to deliver sustainable and
growing cash flows combined
with consistently high returns
on investment and these
results reflect that.”
Andrew Page
Chief Executive Officer
The Restaurant Group plc 
Annual Report 2006 06
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. Introduction
The Restaurant Group (“TRG”) performed strongly throughout
2006 with the benefits from the strategic repositioning undertaken
during the previous year evident in all of our key performance
metrics. All of our businesses performed well, delivering a 19%
increase in adjusted profit before tax. We have also made further
good progress in terms of margin growth with a 140 basis point
increase in our operating profit margin. This improvement resulted
from, inter alia, increased trading levels, driving further economies
through scale, enhanced operating practices and other Group
initiatives to improve efficiency. 
Our core objective continues to be growth in shareholder value
and the strategy we have deployed to achieve this is to build a
business capable of delivering long-term, sustainable and growing
cashflows. Cash generation is a key area of focus for the team 
at TRG and I am delighted that we have, again, converted our
profits into cash at a very healthy rate and that both earnings 
and operating cashflow per share have grown strongly. 
Our model for generating value is straightforward and robust. 
It has five key components, as follows: 
> 1. Strong underlying like-for-like profit growth from our
existing estate through focusing on our customers and 
as a result of initiatives to secure further operational
improvements and efficiencies;
> 2. Incremental profit improvements through economies of scale; 
> 3. Clear and sustainable conversion of those growing profits 
into cash; 
> 4. A new unit rollout programme funded from those internally
generated cashflows; and
> 5. Consistently high returns from those new openings,
significantly ahead of our cost of capital, to generate 
further growth in profits and cashflow. 
This virtuous circle enables the Group to continue its growth in 
a predominantly organic and value–accretive way. The quality 
of our cashflow is a distinctive feature of TRG’s model, with 
our businesses occupying leading positions within our chosen
market segments. Since the beginning of 2006 our focus has
been on markets away from the high streets, concentrating on
edge of town, out of town, rural, semi-rural and concessions
locations. We believe that these segments have distinct barriers 
to entry, offer the opportunity for significant further growth and
enable us to generate high returns. Going forward we intend to
continue our development along these lines. 
All of the key performance metrics improved during 2006: 
> A 5% increase in like-for-like sales – the bulk of which was as 
a result of more customers using our restaurants as opposed
to price or spend increases – combined with our new openings
resulted in turnover increasing by 10%; 
> Adjusted EBITDA increasing by 11% and adjusted operating
profit increasing by 23%; and 
> Margins improved at both divisional and group levels with 
our Group operating profit margin rising by 140 basis points
to 12.5% – a very satisfactory result particularly against 
the background of a 90 basis point operating profit margin
improvement in the previous year. 
Again, the increase in profit was the product of three 
principal components – like-for-like profit increases from 
the existing estate, profitable contribution from new 
openings and further cost savings from purchasing initiatives 
and operational improvements and efficiencies. This
combination represents a healthy background to our 
continuing profitable development. 
>
>27m
increase in revenue
>
+1 0 %
We continue to see more customers
using our restaurants, both in new sites
and existing units
>
2.5m
customers served 
in 2006
children’s meals served 
in Frankie & Benny’s
The Restaurant Group plc 
Annual Report 2006 07
* Results are stated excluding non-trading items and excluding the results of Deep Pan
Pizza in the prior year comparatives. Further information is provided in note 2 of the
financial statements.
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. >
Leading positions
within our chosen
market segments
Operating and financial review
Chief Executive Officer’s 
review of operations
continued
Leisure
> Total turnover: £236.3m
> Profit: £50.7m
> Operating margin: 21.5%
> Frankie & Benny’s
> 139 units
Frankie & Benny’s had an excellent year with both EBITDA 
and profit growing by more than 20%. The brand delivered 
strong growth in like-for-like sales and yet again produced 
further growth in both EBITDA and operating profit margins. 
This brand forms a key part of TRG’s future plans for growth 
and it is encouraging that we were able to open 25 new units
during 2006. Of these, 11 were conversions of former Deep 
Pan Pizza sites, nine of which are branded as “Little Frankie’s”, 
a derivative concept of Frankie & Benny’s designed to operate 
on a smaller footprint than a standard Frankie & Benny’s
restaurant. The performance of the new openings has been 
very good and it is particularly encouraging to see that the 
returns from the new Frankie & Benny’s are consistently high 
both in absolute terms and also, very importantly, in comparison
with the returns derived from earlier years’ openings. This gives 
us much confidence for the future as we look to continue our
rollout at a rate of 15-20 new Frankie & Benny’s restaurants 
per annum. Our pipeline of new sites is strong with good 
visibility on rollout to the end of the decade. 
Frankie & Benny’s 
Trafford Centre by night.
Chiquito Castleford
An extensive back bar!
The Restaurant Group plc 
Annual Report 2006 08
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. > Chiquito 
> 45 units
2006 was another good year for Chiquito with the highest 
like-for-like sales and operating profit growth within the Group.
EBITDA increased by 38% and operating profit was up 44%.
Margins also improved significantly with the EBITDA margin up
90 basis points and operating profit margin up 120 basis points.
Against a background of significant profit growth and margin
enhancement in 2005 this is a terrific performance and one that
the Chiquito team are keen to build on in 2007. During the year
we opened 11 new restaurants and we are expecting to open 
5-10 new restaurants in the current year, a rate which we expect
to maintain for the next few years. Returns from the new openings
are good and this gives us confidence as we grow this brand.
We are particularly encouraged by the performance of our
restaurants co-located with Frankie & Benny’s and we will
continue to pursue dual roll-out opportunities. 
> Blubeckers 
> 22 units
2006 was the first full year of operating Blubeckers within TRG
and we are encouraged with the results. Blubeckers delivered
strong growth in like-for-like sales and delivered a very good level
of EBITDA and operating profit. During 2006 Blubeckers became
fully integrated into TRG and since June we have begun to roll
out new Blubeckers restaurants. We added five new units during
2006, one of which was a conversion of a Garfunkel’s restaurant
in Cambridge. 
We are encouraged by the performance of these new sites
where typically the build-up in trade takes longer (approximately
two to three years) than it does for our other brands. We expect
to earn good returns from these new openings and this has
encouraged us to step up the openings programme in 2007 
to 5-10 new restaurants. Blubeckers is well placed to benefit
from the trends towards increased eating out and its widespread
appeal across most socio-economic and age groups makes it
particularly attractive to much of the UK population. 
> Garfunkel’s
> 29 units
Garfunkel’s produced a very solid performance during 2006 with
operating profits up by 15%. It enjoyed strong like-for-like sales
growth and delivered significant improvements in margins with
the operating profit margin increasing by 140 basis points.
During the second half of 2006 we commenced a refreshment
and refurbishment programme within Garfunkel’s. The first site 
to undergo these changes was our restaurant at Northumberland
Avenue followed by the unit at Irving Street. The results have
been extremely pleasing with strong growth in sales and a
widening of the customer base. We are currently planning to
refresh and refurbish approximately 10 sites during 2007 and 
we anticipate that this will deliver a significant level of incremental
cashflow at each site to generate very satisfactory levels of
return on investment. In December 2006 a former Deep Pan
Pizza site on Oxford Street was converted into a Garfunkel’s 
and we are pleased with its performance since opening. 
Blubeckers, Odiham
A stunning venue loved by all.
growth in revenue in 
our Leisure division
>
+25%
The Restaurant Group plc 
Annual Report 2006 09
Garfunkel’s Northumberland Avenue
The first of the new look.
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. >
Strong finances, 
great team, 
focused strategy
Operating and financial review
Chief Executive Officer’s 
review of operations
continued
Concessions
> 49 units
> Total turnover: £72.5m
> Profit: £11.1m
> Operating margin: 15.3%
Our Concessions business faced some very challenging
operating conditions for parts of 2006. The increasing focus on
airport security initiated by the Department of Transport during
the first quarter followed by further disruption during the summer
meant that our Concessions team at the major UK airports faced
some demanding conditions. Our team responded superbly to
produce a very satisfactory set of results. 
Solid like-for-like sales growth together with a contribution from 
the six new openings delivered a 21% increase in turnover, and
EBITDA and operating profit growth of 23% and 24% respectively.
It is particularly pleasing to report that both EBITDA and operating
profit margins grew, by 20 and 40 basis points respectively. 
Our six new openings included three sites at Birmingham airport
and a new unit at Victoria Station. We are pleased with the
performance of these new sites and we anticipate opening
between two and five new concessions units in 2007. We
recently announced that we have won concessions for four 
new units at the new Terminal 5 at Heathrow; building work 
will commence during 2007 and the units are scheduled to open
in March 2008. We are delighted to have secured these sites
and to be able to participate in this landmark UK airport project. 
Garfunkel’s Norwich
The Dining Terrace.
Est Bar Deli
Heathrow Terminal 4.
The Restaurant Group plc 
Annual Report 2006 10
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. Non-core brands and associate
During the year losses from non-core activities increased from
£0.9m to £2.0m. This largely reflects the workout from the old
Deep Pan Pizza estate. We anticipate a significant reduction in
these losses going forward.
Losses from our investment in Living Ventures amounted to 
£0.9m and the returns from this investment have fallen below 
our expectations at the time the investment was made in March
2005. However, we are encouraged that the actions initiated 
by their management during 2006 are now starting to yield 
some benefits and we are looking for further improvement 
during 2007. Nevertheless, in the light of the recent poor
performance of this investment we have carried out an
assessment of its balance sheet carrying value and concluded 
that it is appropriate to make an impairment provision for the
amount of £9.5m. Further details are contained in the Group
Finance Director’s review.
Corporate
During 2006 we completed the transfer of all of our operations
and administrative functions into one site in Borough, London.
This exercise ran very smoothly and was carried out in a highly
professional manner by our people. The positive impact of
bringing everyone together as one team is already very evident
and I am confident that we will continue to derive further benefits
in the future. 
Market dynamics and economic backdrop
The prospects for the UK eating out market look favourable 
on both short and medium term bases. Socio-economic factors
such as an ageing population, more females in work and levels 
of disposable income significantly higher than for previous
generations augur well for our industry. Lifestyle changes are 
also positive with an increasing level of consumer spending 
on leisure activities. Projections for future growth in eating out
spend indicate a continuation of recent trends for a rate of
growth ahead of GDP growth. 
We believe that interest rates and employment levels are two 
key drivers of consumer spend which can potentially impact 
our marketplace. We have seen interest rates rise three times 
in the past nine months and whilst we are encouraged by the
resilience of our business in the face of such rises, we remain
vigilant to the potential impact of significant further increases in
the cost of borrowing. In terms of the outlook for employment
we are encouraged by the high levels of employment and believe
that the increases seen in recent years have provided some
underpinning for consumer–facing businesses such as ourselves. 
Cost inflation in our sector has been an issue for the past twelve
to eighteen months and TRG has clearly demonstrated its ability
to cope with this. On balance, we believe that the macro-
economic backdrop remains broadly favourable for our sector. 
Against a backdrop of positive demand-side dynamics, a key
concern for some time has been supply-side risk. In this regard
we believe that we have positioned TRG in market segments
which afford some protection from supply-side risk whilst
benefiting significantly from the positive demand trends in our
marketplace. This has resulted in a more resilient business with
the potential to deliver higher-quality, long-term, sustainable and
growing cash flows. 
Future prospects 
2006 was another good year for the Group but our attention 
is now focused on 2007 and beyond. We have a superb
portfolio of brands, good visibility on rollout of new restaurants,
occupy leading market positions in our chosen segments and
have a fantastic team of people. The year has started well with
like-for-like sales for the first nine weeks 5% ahead of last year
and we are confident of continuing our progress in 2007. 
Andrew Page
Chief Executive Officer
4 April 2007
increase in the proposed 
full year dividend
>
+26%
The Restaurant Group plc 
Annual Report 2006 11
>
>7 ,500
>
5
individuals contributing
to the success of the
Group, every day
years of like-for-like
revenue growth
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. Operating and financial review
Group Finance Director’s review 
The Restaurant Group plc 
Annual Report 2006 12
“The Group continues to be
strongly cash generative with 
a very healthy and transparent
conversion of operating profits
into cash. This enables us to
finance our substantial new
site development programme.”
Stephen M.A. Critoph
Group Finance Director
>
Generating sustainable
and growing cash flows
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. Results
As described in the Chairman’s statement the Group has had
another excellent year. Total Group turnover increased by 9.6% 
to £314.7m and turnover of the principal trading brands increased
by 24.1% to £308.7m. This strong level of turnover growth reflects
an impressive level of 5% like-for-like sales growth in the principal
brands, a full year impact of new openings in 2005 and a part
year impact of openings during 2006. Group EBITDA increased by
11.3% to £55.6m, and Group adjusted operating profit increased
by 22.6% to £39.2m. These levels of growth would have been
even stronger had it not been for a higher level of losses in 
non-core brands and discontinued operations (relating respectively
to Deep Pan Pizza and the Caffe Uno sites not sold to Paramount
at the end of 2005).
Total adjusted profit before tax excluding Living Ventures was
£35.9m, an increase of 19.2% on the prior year. After accounting
for our share of the losses of Living Ventures, which amounted to
£0.9m, total reported Group profit before tax and non-trading items
amounted to £35.0m, an increase of 18.5% on the prior year. 
Non-trading items 
The Group results include a net charge before taxation of £13.4m in
respect of non-trading items. This is made up of the following items:
2006 2005
£m £m
Impairment of loan note due 
from Living Ventures (9.5)–
DPP integration and rationalisation (4.6) –
Interest rate swap impact 0.7 (0.1)
Other items (net) – (1.2)
(13.4) (1.3)
In the light of the continuing poor performance of the Living
Ventures business we have conducted a detailed review of the
current carrying value of this investment. As a result of this review
we have concluded that it is appropriate to make a provision of
£9.5m against our balance sheet carrying value. Going forward 
we will continue to encourage the executive management of Living
Ventures to improve the financial performance of the business. 
It continues to be our very firm intention to maximise the value 
of our investment in this business.
The one-off charge relating to the Deep Pan Pizza rationalisation
process is a little higher than the initial estimate of up to £4m. We
have adopted a prudent approach regarding provision for onerous
lease conditions for certain Deep Pan Pizza properties.
Non-trading items also include a credit relating to the Group’s
interest rate swap arrangements. New swap arrangements were
put in place in January 2006. Under IFRS this swap is re-valued 
at each accounting date. The upward movement of interest rates
over the course of the last twelve months has resulted in this
positive revaluation. 
The Restaurant Group plc 
Annual Report 2006 13
Frankie & Benny’s Ipswich
Smiling staff and great food equals
happy customers.
Joe’s Kitchen, Marshalsea Road SE1
Something new in the café market.
EBITDA in 2006
>
£55.6m
* Results are stated excluding non-trading items and excluding the results of Deep
Pan Pizza in the prior year comparatives. Further information is provided in note 2 
of the financial statements.
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. >
Strong pipeline 
for further growth
Operating and financial review
Group Finance Director’s review 
continued
Profit on disposal of businesses
We are pleased to report further profits relating to the Caffe Uno
disposal in December 2005. The additional profit after taxation of
£3.8m (profit before taxation of £2.7m), which is in addition to the
profit after taxation of £3.5m reported in 2005 (profit before taxation
of £3.7m) relates to cost and potential warranty accruals no longer
required and the completion of significantly better than anticipated
deals on disposal of the residual Caffe Uno sites not sold to
Paramount in December 2005. Including the profit before taxation 
of £3.7m recognised last year, this brings the cumulative profit on
disposal before taxation of the Caffe Uno business to £6.4m.
Capital expenditure
During 2006 the Group invested a total of £40.8m (2005: £40.9m)
in capital additions. This consisted of the following: 
> £28.6m invested in 47 new units (16 Frankie & Benny’s 
and nine Little Frankie’s, 11 Chiquito, six Concession outlets, 
four Blubeckers and one Garfunkel’s). This includes an amount
of £3.7m spent on converting 13 former Deep Pan Pizza sites,
with the balance spent on 34 brand new locations.
> £8.5m on refurbishment and maintenance expenditure. 
> £3.7m on completing the new head office development
referred to in last year’s report.
The Frankie & Benny’s family
Stansted airport.
The Restaurant Group plc 
Annual Report 2006 14
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. The Group continues to be focused on optimising financial
returns from our capital investments. As we have described 
in previous reports the Group operates a rigorous investment
appraisal process with the financial viability of all new
developments being subject to a detailed review. This review
covers all aspects of proposed new developments including
financial projections, socio-economic and demographic 
analysis, and local competitor and market analysis. All significant
projects are subject to approval by the Group Board and we
conduct post-completion appraisals which confirm that we are
consistently achieving the expected levels of financial return.
Cash flow
The Group continues to be strongly cash generative with a very
healthy and transparent conversion of operating profits into cash
flow. Net cash flow from operations of £63.4m grew by 14%
compared to the previous year. Free cash flow (defined as cash
flow from operating activities less interest, tax and maintenance
capital expenditure) was £42.4m, an increase of 19% compared 
to the prior year (2005: £35.7m). 
Once again, the Group’s substantial new site development
programme, as well as the ordinary dividend, has been entirely
financed out of internally generated cash flow. 
Balance sheet & key financial ratios
Total Group net assets in the year reduced from £91.4m to
£65.2m. This reduction is due to the special dividend of £34.8m
paid in March. Total non-current assets increased from £181.7m 
to £194.0m, reflecting the Group’s strong capital expenditure
programme net of depreciation charges. 
The key financial ratios for the year were as follows:
2006 2005
Interest cover 12.0x 17.5x
Fixed charge cover 2.3x 2.3x
Balance sheet gearing 73% 14%
Interest cover has reduced significantly as a result of the much higher
levels of average net debt during 2006 compared to 2005. For TRG,
given that this is a primarily lease based business model, fixed
charge cover is the key financial ratio that we focus on. For 2006 
the Group’s fixed charge cover was 2.3 times, in line with 2005. 
Taxation
The total taxation charge (excluding the impact of disposal of
businesses) for the year is £11.2m compared with £8.6m in the
prior year. The taxation charge on the trading business reflects a
normalised tax rate in 2006 of 34% (2005: 33%). The total taxation
charge of £11.2m (2005: £8.6m) consists of a corporation tax
charge of £8.5m (2005: £9.0m) and a deferred tax charge of
£2.7m (2005: £0.4m credit). 
Stephen M.A. Critoph
Group Finance Director
4 April 2007
new units opened in 2006
>
+47
The Restaurant Group plc 
Annual Report 2006 15
>
£42.4m
>
30-35
free cash flow new units planned 
for 2007
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. 1
4
2
>1 Alan M. Jackson, Non-executive Chairman
Aged 63, he joined The Restaurant Group plc as Executive
Chairman in March 2001 and became non-executive Chairman
from January 2006. He has a wealth of experience in the leisure
sector. For 18 years, from 1973 to 1991, he occupied various
positions within Whitbread, principally Managing Director of
Beefeater steakhouses and also the Whitbread restaurant division
where he was responsible for the creation and development of
Beefeater, Travel Inns and TGI Friday brands. After the Beer
Orders in 1991 he founded his own business which became Inn
Business Group plc in 1995 and was subsequently acquired by
Punch in 1999. He chaired Oriental Restaurant Group plc until 
its sale to Noble House in 2000. Currently Alan is non-executive
Chairman of Luminar plc, Randalls Vaultier Limited and Charles
Wells Limited and he is a non-executive Director of Playtech plc.
>2 Andrew Page, Chief Executive Officer
Aged 48, he joined The Restaurant Group plc as Finance
Director in June 2001. In December 2003 he was appointed
Group Managing Director and in January 2006 became Chief
Executive Officer. His career has spanned both international and
domestic businesses. Prior to joining The Restaurant Group plc,
he held a number of senior positions in the leisure and hospitality
industry including Senior Vice President with InterContinental
Hotels and Finance Director of Hanover International plc. Prior 
to that, Andrew spent six years as a Corporate Financier with
Kleinwort Benson having trained and qualified as a Chartered
Accountant with KPMG.
>3 Stephen M.A. Critoph, Group Finance Director
Aged 46, he was appointed as Finance Director of The Restaurant
Group plc in September 2004. Previously he has held several senior
finance positions in Compass Group plc and Granada Group plc,
including Corporate Development Director of Compass Roadside
and Finance Director of Travelodge and Little Chef. He trained and
qualified as a Chartered Accountant with Deloitte and Touche.
>4 Kevin J. Bacon, Executive Director, Leisure
Aged 47, he joined The Restaurant Group plc in 1996 as an Area
Manager for Frankie & Benny’s, becoming Operations Manager in
1998, Operations Director in 2000 and Managing Director in 
2002. In June 2003, he was appointed to the Board of The
Restaurant Group plc. Prior to joining The Restaurant Group plc,
he had retail experience with Granada Motorway Services Ltd,
Forte Roadside Restaurants Ltd and Currys Ltd (Dixons plc).
>5 Patricia A. Corzine, Executive Director, TRG Concessions
Aged 49, she joined The Restaurant Group plc in 1993 as 
Area Manager for Garfunkel’s which included the Group’s 
airport operations. In 1997 she was appointed Brand Director 
of Garfunkel’s and Airports, and in 1999 was promoted to
Operations Director – Concessions. In March 2003 she was
appointed Managing Director – Concessions and in October 2003
was appointed to the Board. Prior to joining The Restaurant Group
plc, Trish worked for Häagen-Dazs then managed the Atacama
Restaurant Group.
Directors
>
Making the 
right decisions
The Restaurant Group plc 
Annual Report 2006 16
3
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. 5
6
7
9
8
>6 John E. Jackson, Non-executive
Aged 60, he was appointed a non-executive Director of the
Company in October 1996. He is Chairman of Virgin Retail Limited,
Virgin Cosmetics Limited, Victory Corporation plc and various 
other Virgin companies. He is also senior non-executive Director 
of Wilkinson Hardware Stores Limited and a non-executive Director
of Luminar plc. He was formerly Chief Executive of Semara plc,
Managing Director of Body Shop International plc and Chairman
and Managing Director of Chesebrough Ponds Limited.
>7 Andrew Thomas, Non-executive
Aged 64, he was appointed a non-executive Director of the
Company in May 2001. He was formerly Executive Chairman of
The Greenalls Group plc. He is currently a non-executive Director
of JJB Sports plc, together with a number of non-quoted
companies, and a Partner in Moors, Andrew Thomas and
Company, Chartered Accountants.
>8 David H. Richardson, Non-executive
Aged 55, he was appointed as a non-executive Director of 
the Company in February 2007. He was Finance Director of
Whitbread plc from 2001 to 2005. He is currently non-executive
Chairman of Sports Direct International plc and a non-executive
Director of Serco Group plc, Dairy Crest Group plc, Tomkins plc
and Forth Ports plc. 
>9 Robert J. Morgan, Company Secretary
Aged 35, he joined The Restaurant Group in 2002 in the 
finance department and was appointed as Company Secretary 
in September 2004. Previously he worked in the finance 
function of Coca-Cola HBC S.A. having qualified as a 
Chartered Accountant with KPMG.
The Restaurant Group plc 
Annual Report 2006 17
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985. Report of the Directors
The Restaurant Group plc 
Annual Report 2006 18
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
The Directors present their annual report and the Group accounts for the year ended 31 December 2006.
Results and dividends
The results for the year ended 31 December 2006 are presented under International Financial Reporting Standards (“IFRS”). The report
and accounts are drawn up on a 52 week reporting basis (ending on 31 December 2006). The results for the year are set out in the Group
consolidated income statement on page 35. This shows a Group profit after taxation of £14,366,000 (2005: £23,345,000).
An interim dividend of 1.05p per share was paid on 19 October 2006. The Directors propose a final dividend of 4.95p per share to be 
paid on 4 July 2007 bringing the ordinary dividend payable in respect of 2006 to 6.00p (2005: 4.75p). In addition, a special dividend 
of 16p per share was paid to shareholders on 9 March 2006, following the disposal of the Caffe Uno business in December 2005.
Principal activity
The principal activity of the Group is the operation of restaurants. Further information relating to the business is given in the Chief Executive
Officer’s review on pages 6 to 11.
Directors
Full details of the Directors of the Company are given on pages 16 and 17. The Directors who held office during 2006 were as follows:
Alan M. Jackson
Andrew Page
Stephen M.A. Critoph
Kevin J. Bacon
Patricia A. Corzine
John E. Jackson
Andrew Thomas
Robert Ivell (resigned 8 September 2006)
David H. Richardson was appointed as a non-executive Director of the Company with effect from 1 February 2007.
In respect of 2006, each of the non-executive Directors (excluding the Chairman) is considered by the Board to be independent. 
Alan M. Jackson transitioned from Executive Chairman to non-executive Chairman on 1 January 2006, and is not considered to 
be an independent non-executive Director.
No Director has a service contract with the Company requiring more than twelve months notice. 
In accordance with the Articles of Association, the Directors retiring by rotation are Kevin J. Bacon and Patricia A. Corzine who, 
being eligible, offer themselves for re-election at the Annual General Meeting. John E. Jackson has been a non-executive Director 
of the Company for more than nine years, and, in accordance with corporate governance best practice, also offers himself for re-election.
The Board considers John E. Jackson to remain independent and recommends his re-election as an independent non-executive Director.
In accordance with the Articles of Association of the Company, David H. Richardson offers himself for election at the Annual General
Meeting of the Company to be held on 16 May 2007, being the first opportunity for shareholders to approve his appointment.
During the year the Audit Committee comprised the following non-executive Directors:
John E. Jackson (Chairman)
Andrew Thomas
Robert Ivell (resigned 8 September 2006)
David H. Richardson was appointed as a member of the Audit Committee with effect from 1 February 2007.
During the year the Remuneration Committee comprised the following non-executive Directors:
Andrew Thomas (Chairman)
John E. Jackson
Robert Ivell (resigned 8 September 2006)
David H. Richardson was appointed as a member of the Remuneration Committee with effect from 1 February 2007.
During the year the Nominations Committee comprised the following Directors:
John E. Jackson (Chairman)
Alan M. Jackson
Andrew Page
Andrew Thomas
Robert Ivell (resigned 8 September 2006)
David H. Richardson was appointed as a member of the Nominations Committee with effect from 1 February 2007.
The Directors’ remuneration report, which includes details of Directors’ remuneration and interests in the Company’s shares and options,
together with information on service contracts, is set out on pages 24 to 29. The Restaurant Group plc 
Annual Report 2006 19
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Directors’ shareholdings
The interests of the Directors in the shares of the Company, all being beneficially owned, were as follows:
At At At
4 April 31 December 1 January
2007 2006 2006*
Executive Directors
Andrew Page 250,173 183,950 156,449
Stephen M.A. Critoph 38,250 26,250 3,737
Kevin J. Bacon 108,140 95,566 49,421
Patricia A. Corzine 85,275 74,400 48,601
Non-executive Directors
Alan M. Jackson 370,198 350,198 319,774
John E. Jackson 49,166 49,166 52,500
Andrew Thomas 48,888 48,888 50,000
David H. Richardson 5,000 n/a n/a
Robert Ivell n/a n/a 10,000
* Following the share consolidation on 27 February 2006, the Directors’ shareholdings were reduced by a factor of eight new shares for
every nine existing shares held prior to the consolidation. Details of the Directors’ share options are disclosed in the Directors’ remuneration
report on pages 28 and 29. The market price of the ordinary shares on 31 December 2006 was 309.25 pence and the range during the
year was 148 pence to 309.25 pence.
Substantial shareholdings
At 27 March 2007 the Company had been notified of the following interests of 3% or more in the issued ordinary share capital of the Company:
Number of % of issued 
shares share capital
NewSmith Asset Management 16,126,427 8.2%
JP Morgan Asset Management 14,682,268 7.5%
Barclays Global Investors 11,807,878 6.0%
Capital International 10,275,443 5.2%
Legal & General Investment Management 8,839,914 4.5%
M & G Investment Management 8,616,578 4.4%
F&C Asset Management 8,376,065 4.3%
Old Mutual Asset Managers 7,458,236 3.8%
Aberforth Investment Managers 7,357,438 3.8%
Corporate governance
The Company is committed to high standards of corporate governance. The Board is accountable to the Company’s shareholders for
good corporate governance. This statement describes how the principles of corporate governance are applied to the Company and the
Company’s compliance with the best practice provisions of the Combined Code on Corporate Governance and the Guidance on Audit
Committees, together “the Code”. The Company has been in full compliance throughout the year with the provisions set out in the Code
except for provisions concerning the number of Directors considered to be independent, and the independence of the Chairman.
The Board
The Board’s role is to provide entrepreneurial leadership of the Company and Group within a framework of prudent and effective controls
which enable risk to be assessed and managed. The Board reviews the Group’s strategic objectives and looks to ensure that the
necessary financial and human resources are in place to achieve these objectives, and to review management performance against these
objectives. The Board also sets the Company’s values and standards and manages the business in a manner to meet its obligations to
shareholders and other stakeholders.
The Board currently comprises the non-executive Chairman, the Chief Executive Officer, the Group Finance Director, the Executive Director
of the Leisure division, the Executive Director of the Concessions division and three non-executive Directors. Their biographies appear 
on pages 16 and 17 and these demonstrate a range of experience and sufficient calibre to bring independent judgement on issues of
strategy, performance, resources and standards of conduct which is vital for the success of the Group. 
John E. Jackson acts as senior independent non-executive Director and is available to shareholders if they have reasons for concern 
on which contact through the normal channels is inappropriate or has failed to resolve an issue.
The roles of Chairman and Chief Executive Officer are clearly defined. The Chairman is responsible for the leadership of the Board and 
the Chief Executive Officer is responsible for the strategic direction and operational management of the Group.
The Board meets on a regular basis and there is a formal schedule of matters specifically reserved for its decision. This includes approval 
of the annual budget and the three-year business plan, approval of the interim and year end report and accounts, review and approval of
significant capital expenditure (including development of new sites), significant disposals of assets and acquisitions or disposals of businesses.  Report of the Directors continued
The Restaurant Group plc 
Annual Report 2006 20
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
The Board (continued)
Operational management are responsible for the day-to-day running of the Group and report on a regular basis on that performance to 
the Board. The Board is responsible for reviewing, challenging and approving the strategic direction of the Group and monitoring
operational performance. 
The Board is responsible to shareholders for the proper management of the Group and has access to the necessary information to enable
it to discharge its duties. All Directors are subject to election by shareholders at the first opportunity after their appointment, except where
they are appointed by shareholders, and to re-election thereafter at intervals of not more than three years.
There is significant involvement from the non-executive Directors. This involves an on-going dialogue with executive Directors with
constructive challenges of performance and the Group’s strategy. The non-executive Directors are provided with sufficient information to
allow them to monitor, assess and challenge the executive management of the Group. Comprehensive board papers including financial
information are circulated to all Directors prior to Board meetings and, on a weekly basis, they receive up-to-date trading information. 
The non-executive Directors have the opportunity to meet without the executive Directors present, and this includes discussions of 
targets set and met by management.
All Directors have access to the advice and services of the Company Secretary and a procedure has been agreed for the Directors in the
furtherance of their duties to take independent professional advice, if necessary, at the expense of the Company. 
On joining the Board there is a process for Directors to receive training as to their role and its requirements and for non-executive Directors
to gain an understanding of the whole business. Non-executive Directors are actively encouraged to meet with operational management 
to enhance their understanding of the Group’s business, its brands, employees and processes. During 2006 there were nine Board
meetings. Overall attendance at meetings was 100% by Board members.
Executive Directors are included in the annual performance evaluation of all senior employees within the Group. This involves 
a comprehensive review of performance against objectives and covers areas for future development through appraisal documentation 
and meetings. The non-executive Directors also meet in the absence of the Chairman to appraise the Chairman’s performance in the light 
of his fee review. 
The Company acknowledges the importance of developing the skills of the Directors to run an effective Board. To assist in this, Directors
are given the opportunity to attend relevant courses and seminars and to acquire skills and experience which may enhance their
contribution to the on-going progress of the Group. The Board and committees of the Board have been subject to a formal performance
appraisal, through an internal questionnaire, and the performance of all members of the Board is considered as part of the annual
remuneration review process.
Communications with shareholders
Communications with shareholders are given high priority. The Chairman’s statement, Chief Executive Officer’s review and Group Finance
Director’s review on pages 4 to 15 include a detailed review of the business and the Chief Executive Officer’s review on pages 6 to 11
includes a review of planned future developments. There is a regular dialogue with institutional investors including presentations after the
Company’s preliminary announcement of the year end results, and at the half year.
Feedback from major institutional shareholders is provided to the Board on a regular basis and where appropriate the Board will take steps
to address concerns and recommendations. The Board uses the Annual General Meeting to communicate with private and institutional
investors and welcomes their participation. The Chairman aims to ensure that the chairmen of the Audit Committee, Remuneration
Committee and Nominations Committee are available at the Annual General Meeting to answer questions, and for all Directors to attend.
Remuneration Committee
The Remuneration Committee consists of the non-executive Directors. There was 100% attendance of the two Remuneration Committee
meetings during 2006. The role of this Committee and details of how the Company complies with the principles of the Code are set out 
in the Directors’ remuneration report on pages 24 to 29.
Nominations Committee
The Nominations Committee consists of the non-executive Directors, the non-executive Chairman and the Chief Executive Officer. It met
once during 2006 with full attendance. There are written terms of reference for the Nominations Committee. It makes recommendations
to the Board for the appointment or replacement of additional Directors. It is also responsible for succession planning for the Group.
Kevin J. Bacon and Patricia A. Corzine offer themselves for re-election at the Annual General Meeting to be held on 16 May 2007. 
The Board have confirmed that they are satisfied that each of the Directors continues to contribute effectively and has demonstrated
commitment to the role. 
It was not felt necessary to employ an external search consultant in the recruitment of David H. Richardson, given his profile, experience
and professional background. This does not mean the Company would not use external search consultants for future appointments of
Directors to the Board.
John E. Jackson has been a non-executive Director of the Company for more than nine years, and in accordance with corporate
governance best practice, also offers himself for re-election at the Annual General Meeting. The Chairman and Board are satisfied that
John E. Jackson is considered to be independent in his role as senior non-executive Director notwithstanding his length of service on 
the Board, and that he continues to provide valuable experience, judgement and insight to the Board and its Committees.
Audit Committee
The Audit Committee consists of the three non-executive Directors. The Committee is chaired by John E. Jackson who is a qualified
accountant. It meets on a regular basis under its terms of reference, and with the Group Finance Director and the external auditors  The Restaurant Group plc 
Annual Report 2006 21
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
to review the financial statements and external financial announcements made by the Company. It has responsibility for reviewing and
monitoring the external auditors’ independence and objectivity, and reviews supplies of all non-audit services provided by the external
auditors to ensure that independence and objectivity are not compromised. 
Andrew Thomas is a partner in an independent firm of Chartered Accountants. The other members of the Audit Committee are 
non-executive Directors. The Audit Committee met twice during 2006 with full attendance.
The Restaurant Group plc – strategy
The Restaurant Group’s key objective is to grow shareholder value and the strategy deployed to achieve this is to build a business capable
of generating long-term sustainable and growing cash flows. In pursuit of this we have built a business which is focused on the growing
casual eating-out market. We have targeted segments of this market which offer distinct barriers to entry and where we can be confident 
of delivering good growth in profits and cash flows and where there is good potential for high returns on investment.
This has led the Group to focus our activities in two areas – Leisure and Concessions, and this emphasis was underlined by the divesting
of our high street businesses (Caffe Uno and Est Est Est) during 2005. The Group operates in the expanding casual dining market, and 
our offerings continue to provide good value for money in comfortable surroundings and excellent service from our dedicated teams.
The Group’s strategy is set to deliver further organic growth through the roll-out of our brands, in particular Frankie & Benny’s, Chiquito 
and Blubeckers. We have a robust pipeline of sites for development, coupled with a strong focus on continuing to deliver like-for-like sales
growth from our existing restaurants. Our Concessions business operates in a dynamic and complicated market where our management
teams have market-leading expertise and a track record of innovation and improving sales performance. 
The Restaurant Group plc – risk factors
The Board of Directors continually identify, monitor and manage potential risks and uncertainties to the Group. The list below sets out what
the Directors consider to be the current principal risks and uncertainties. This list is not presumed to be exhaustive, and by its very nature
is subject to change.
• Increased supply of new restaurant concepts into the market
• Adverse economic conditions and decline in consumer confidence in the UK
• Increase in prices of key raw materials, wages and overheads (including utilities)
• Impact of terrorism in key locations (including airports)
• Increased regulation of industry leading to higher costs 
• Possible health pandemic that may cause customers to stay away or prevent restaurants being adequately staffed
• Failure to provide customers with brand-standard value for money offerings and service levels
• Failure of key suppliers to deliver products into branches 
• Damage to brand image due to failures in environmental health in the branches or from contamination of products
• The loss of key personnel or failure to manage succession planning
• Breakdown in internal controls through fraud or error
The Restaurant Group plc – key performance indicators
The Board of Directors and executive management receive a wide range of management information delivered in a timely manner. 
Listed below are the principal measures of progress that are reviewed on a regular basis to monitor the development of the Group:
Like-for-like sales
This measure provides an indicator of the underlying performance of our existing restaurants, and highlights successful development 
of our offerings to best match changing consumer demands over time. During 2006, the Group like-for-like sales increased by 5%, 
which followed a 3% increase in 2005.
New sites opened
The expansion of our brands is a key driver of Group’s profitability. As noted in the Group Finance Director’s review, potential new 
sites are subject to a rigorous appraisal process before they are presented to the Board for approval. This process ensures we maintain
the quality of openings as well as the quantity of sites opened. During 2006 the Group opened 47 new sites (including 13 conversions 
of former Deep Pan Pizza units) and plans to open 30-35 new restaurants during 2007.
EBITDA
The ability of the Group to finance its roll-out programme is aided by strong cash flows from the existing business. EBITDA serves 
as a useful proxy for cash flows generated by operations and is closely monitored. During 2006 the Group generated £55.6m EBITDA, 
an increase of 11% on 2005.
Operating profit margin
The Board and management closely monitor profit margins as an indicator of operating efficiency within restaurants and across the Group.
During 2006 the Group adjusted operating margin improved by 140 basis points to 12.5%.
In addition, the Group closely scrutinises the returns on invested capital from new site openings and the average EBITDA generated 
by restaurants.
Internal control
The Board is responsible for the Group’s system of internal control and for reviewing its effectiveness. In accordance with guidance for
directors “Internal Control: Guidance for Directors on the Combined Code” (the “Turnbull Guidance”), the Board has ensured that there 
is an ongoing process for reviewing the effectiveness of the system of internal control including identifying, evaluating and managing the
significant risks faced by the Group. This process, which is regularly reviewed by the Board, is carried out in conjunction with business
planning and is documented in a risk register that has been progressively enhanced during the financial year and up to the date of
approval of the Annual Report and Accounts.  Report of the Directors continued
The Restaurant Group plc 
Annual Report 2006 22
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Internal control (continued)
Whilst acknowledging its overall responsibility for the system of internal control, the Board is aware that the system is designed to manage
rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable, but not absolute, assurance against
material misstatement or loss. 
The Group has well established procedures which have been developed over many years which meet the requirements of the Turnbull
Guidance. A key control procedure is the day-to-day involvement of executive members of the Board in all aspects of the business and
their attendance at regular management meetings at which performance against plan and business prospects are reviewed. Additionally,
the Board seeks to continually strengthen the internal control system where this is consistent with improving the relationship between risk
and reward. The Group’s associate company, Living Ventures Limited, does not fall under the same internal controls as the Group. The
internal controls within Living Ventures Limited are discussed with management of that company on a regular basis and are considered 
to be appropriate for an entity of its size.
Other key features and the processes for reviewing effectiveness of the internal control system are described below:
• terms of reference for the Board and its sub-committees, including a schedule of matters reserved for the Board and an agreed annual
programme of fixed agenda items for Board approval;
• an established organisational structure with clear lines of responsibility and rigorous reporting requirements. Operational performance
and operational matters are considered at monthly meetings of the executive Directors with senior management. Financial performance
is monitored and action taken through weekly reporting to the executive Directors and monthly reporting to the Board against annual
budgets approved by the Board; 
• capital investment is regulated by a budgetary process and authorisation levels, with appraisals and post-investment reviews;
• comprehensive policy manuals setting out agreed standards and control procedures. These include human resources related policies,
information technology and health and safety; and
• an internal audit function headed by an experienced internal auditor has access to all areas of the Company and Group’s business 
and reports to the Board.
Statement of Directors’ responsibilities in relation to the accounts 
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the company, for safeguarding the assets, for taking reasonable steps for the prevention and detection of fraud and other
irregularities and for the preparation of a Report of the Directors and Directors’ remuneration report which comply with the requirements 
of the Companies Act 1985.
Financial statements are published on the Group’s website in accordance with legislation in the United Kingdom governing the preparation
and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the
Group’s website is the responsibility of the Directors. The Directors’ responsibility also extends to the ongoing integrity of the financial
statements contained therein.
The Directors are responsible for preparing the annual report and the financial statements in accordance with the Companies Act 1985.
The Directors are required to prepare financial statements for the Group in accordance with International Financial Reporting Standards
(“IFRSs”) as adopted by the European Union and Article 4 of the IAS Regulations and have chosen to prepare financial statements for the
Company in accordance with UK GAAP .
Group financial statements
Company law requires the Directors to prepare such financial statements in accordance with International Financial Reporting Standards,
the Companies Act 1985 and Article 4 of the IAS Regulation. 
International Accounting Standard 1 requires that financial statements present fairly for each financial year the Group’s financial position,
financial performance and cash flows. This requires the faithful representation of the effects of transactions, other events and conditions 
in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting
Standards Board’s ‘Framework for the preparation and presentation of financial statements’. 
In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable International Financial Reporting
Standards. A fair presentation also requires the Directors to:
• consistently select and apply appropriate accounting policies;
• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable
information; and
• provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the
impact of particular transactions, other events and conditions on the entity’s financial position and financial performance.
Parent company financial statements
Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs
of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent; and
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained 
in the financial statements. The Restaurant Group plc 
Annual Report 2006 23
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Information provided to auditors
All of the current Directors have taken all the steps that they ought to have taken to make themselves aware of any information needed 
by the Company’s auditors for the purpose of their audit and to establish that the auditors are aware of that information. The Directors 
are not aware of any relevant audit information of which the auditors are unaware.
Going concern
Based on the Group’s plans for 2007 and after making enquiries, the Directors have a reasonable expectation that the Group has
adequate resources to continue operations for the foreseeable future. For this reason they continue to adopt the going concern basis 
in preparing the financial statements.
Employees
The Restaurant Group plc is committed to the fair treatment and development of all employees. Wherever possible, the Directors aim to
promote talent from within by reviewing succession plans and offering development opportunities. Through the application of appropriate
policies, the Directors and their management teams ensure employees are not mistreated or discriminated against on the grounds of
gender, colour, ethnic or national origin, disability, age, marital status, sexual orientation, religion or part-time employment status. The
Company’s performance in these areas (regarding employment practices) is tracked and reported at Board level. The Directors also ensure
regular communication happens throughout the business through written material, team briefings and one-to-one reviews.
Environment
The Restaurant Group plc acknowledges the importance of environmental matters within its role in the community. The Group has
established an environmental committee to develop initiatives to reduce the impact on the environment from the operations of the Group
and is working with several key suppliers, partners and external agencies to ensure environmental concerns are considered in conjunction
with economic factors. In particular, the Group looks to reduce the production of waste in its operations and to maximise efficiency 
of water consumption and the use of non-renewable fuels.
Donations
No donations for political purposes have been directly made by the Company during the year. Charitable events, fund raising and
sponsorship are organised by restaurants for organisations in their locality. 
Creditor payment policy
The Company’s policy is to agree the terms of payments with its suppliers as and when a trading relationship is established. The Company
ensures that the terms of payment are clear and its policy is to abide by the agreed terms, provided the supplier meets its obligations. 
At 31 December 2006 the Company had no trade creditors. The Group had an average of 52 days (2005: 54 days) purchases
outstanding in trade creditors.
Financial risk management
The Board of The Restaurant Group plc regularly reviews the financial requirements of the Group and the risks associated therewith. The
Group does not use complicated financial instruments, and where financial instruments are used it is for reducing interest rate risk. The
Group does not use derivative financial instruments for trading purposes. Group operations are primarily financed from retained earnings
and bank borrowings (including an overdraft facility). 
In addition to the primary financial instruments, the Group also has other financial instruments such as debtors, prepayments, trade
creditors and accruals that arise directly from the Group’s operations. Further information is provided in note 24 to the accounts.
Effective from 16 January 2006, the Group entered into a new three-year interest rate swap, for an initial notional amount of £20,000,000,
rising to £50,000,000 from 18 April 2006 until 16 January 2008, when it reduces to £30,000,000 until 16 January 2009, at which date it
terminates. The fixed rate for the duration of the three years is 4.695%. 
Before the impact of the interest rate swap, the average rate of interest charged during the year on the Group’s debt was 5.76% (2005: 5.32%),
and the average year end rate was 6.30% (2005: 5.50%). On 2006 results, net interest was covered 12.0 times (2005: 17.5 times) 
by profit before tax, interest and exceptional items. Based on year end debt and profits for 2006, a 1% rise in interest rates would 
reduce profits before tax and exceptional items by 0.1% (2005: 0.1%) and interest cover would remain at 12.0 times (2005: 17.4 times). 
At 31 December 2006 the Group had gross borrowings (including overdraft) of £48.2 million (2005: £12.8 million) and cash balances 
of £0.7 million (2005: £0.4 million).
Annual General Meeting
A separate Circular is included with the mailing of the Annual Report to shareholders setting out the resolutions to be voted on at the 
Annual General Meeting, which is to take place on at 11am on 16 May 2007 at the offices of Dresdner Kleinwort Investment Bank, 
30 Gresham Street, London EC2P 2XY.
The Board believes that the proposed resolutions to be put to the Annual General Meeting to be held on 16 May 2007 are in the best
interests of shareholders and, accordingly, recommends that shareholders vote in favour of the resolutions, as the Directors intend to 
do in respect of their own beneficial shareholdings in the Company.
Auditors
BDO Stoy Hayward LLP have expressed their willingness to continue as auditors, and a resolution will be proposed at the Annual General
Meeting for their reappointment.
By order of the Board,
Robert J. Morgan
Company Secretary
4 April 2007 Directors’ remuneration report
The Restaurant Group plc 
Annual Report 2006 24
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Introduction
This report has been prepared in accordance with Schedule 7a of the Companies Act 1985. The report also meets the relevant
requirements of the Listing Rules of the Financial Services Authority and describes how the Board has applied the Principles of Good
Governance relating to directors’ remuneration. As required by the Regulations, a resolution to approve the report will be proposed at the
Annual General Meeting of the Company at which the financial statements will be approved. 
The Regulations require the auditors to report to the Company’s members on the “auditable part” of the Directors’ remuneration report and
to state whether in their opinion that part of the report has been properly prepared in accordance with Schedule 7a of the Companies Act
1985 (as amended by the Regulations). The report has therefore been divided into separate sections for audited and unaudited information.
Unaudited information
Remuneration Committee
The Company has established a Remuneration Committee (“the Committee”) which is constituted in accordance with the recommendations
of the Combined Code. The members of the committee during the year were John E. Jackson, Andrew Thomas, and Robert Ivell (until his
resignation from the Board on 8 September 2006), who were all independent non-executive Directors. David H. Richardson was appointed
to the Remuneration Committee on 1 February 2007. The Committee is chaired by Andrew Thomas.
None of the Committee has any personal financial interest in the Company (other than as shareholders). The Committee makes
recommendations to the Board. No Director plays a part in any discussion about his own remuneration. In determining the other executive
Directors’ remuneration for the year the Committee consulted Alan M. Jackson (Chairman) about its proposals.
Remuneration policy
Executive remuneration packages are designed to attract, motivate and retain Directors of the high calibre needed to progress and develop
the Group and to reward them for enhancing value to shareholders. The performance measurement of the executive Directors and the
determination of their annual remuneration package are undertaken by the Committee. In addition, the Committee determines the
remuneration for the Chairman. The remuneration of the other non-executive Directors is determined by the Board. There are four main
elements of the remuneration package for executive Directors:
• Basic annual salary (including Directors’ fees) and benefits;
• Annual bonus payments which cannot exceed 100% (2006: 75%) of basic salary for executive Directors;
• Long-Term Incentive Plan awards; and
• Pension arrangements. 
The Company’s policy is that a substantial proportion of the remuneration of the executive Directors should be performance related. 
As described below, executive Directors may earn annual incentive payments of up to 100% of their basic salary together with the 
benefits of the participation in the Long-Term Incentive Plan.
During 2006, the Company undertook a review of its remuneration and incentive arrangements for executive Directors and other senior
management, with the advice of New Bridge Street Consultants LLP (appointed independent advisers who provided no other services 
to the Group during the year), encompassing all elements of the remuneration packages. 
The Committee believes that this management team will be highly attractive to other listed companies as well as private equity-backed
businesses. The retention of this team is critically important and the Committee has made some significant adjustments to their remuneration
packages to ensure that there is adequate lock-in and reward for continued excellent performance and shareholder value creation.
Following the review of the remuneration and incentive arrangements of executive Directors, base salary levels have been increased 
and the maximum level of bonus payable has been increased from 75% to 100% of base salary. The incremental 25% that is potentially
payable to executive Directors is based on a more stretching outperformance against budget by the Group. Furthermore, any bonus
earned in excess of 75% of salary must be invested in shares in The Restaurant Group plc as part of the Long-Term Incentive Plan. 
The Remuneration Committee has been advised that the potential maximum level of bonus payable, as well as the total level of cash
remuneration, is in line with comparable companies and the tougher targets and share-based deferral element make the plan tougher 
than those found in most companies. 
Executive Directors are entitled to accept appointments outside the Company or Group. There is no requirement for Directors to remit 
fees earned from appointments outside of the Company or Group to the Company or Group. 
Basic salary
An executive Director’s basic salary is determined by the Committee prior to the beginning of each year and when an individual changes
position or responsibility. In deciding appropriate levels, the Committee considers the Group as a whole and by reference to remuneration
levels at other companies in the leisure and hospitality sectors. Basic salaries were reviewed in December 2005 with increases taking effect
from 1 January 2006. They were again reviewed in December 2006 with increases from 1 January 2007. Executive Directors’ contracts 
of service which include details of remuneration will be available for inspection at the Annual General Meeting.
In addition to basic salary, the executive Directors receive pension contributions and certain benefits-in-kind, principally a car (or car
allowance), and health and life insurance. The Restaurant Group plc 
Annual Report 2006 25
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Annual bonus payments
The annual bonus is based on the achievement of stretching profit before tax targets.
Performance targets are set annually as part of the budgeting process and performance is reviewed against those targets at the end of the
financial year. The maximum performance related bonus that can be paid in respect of performance in 2007 is 100% of basic annual salary
and for significant bonuses to be paid, performance must be outstanding.
Long-term incentives
The Company operates the 2005 Long-Term Incentive Plan (“LTIP”), and the 2003 SAYE Scheme under which awards may be granted 
to Directors. No further awards may be granted under the 1998 Executive Share Option Scheme or 2003 Executive Mirror Option Scheme
following the introduction of the LTIP in 2005.
Long-Term Incentive Plan
The 2005 Long-Term Incentive Plan (“LTIP”), approved by shareholders at an Extraordinary General Meeting on 9 November 2005, is 
the primary long-term incentive scheme of the Company. Under the terms of the LTIP , individuals may receive an award of conditional free
shares (“Conditional Awards”) with a face value at grant of up to 100% of salary per annum, vesting at least three years after grant subject
to performance conditions and continued employment.
In addition, the Plan has the flexibility to grant conditional awards on a matching basis, pro rata to the number of shares purchased 
via annual bonus (“Matching Awards”). Matching Awards may be granted over shares worth up to 37.5% of base salary per annum. 
The aggregate value of annual awards (Conditional and Matching) is capped at 137.5% of base salary. 
The Committee considers that Earnings Per Share (“EPS”) and Total Shareholder Return (“TSR”) are the most appropriate measures 
of performance, with EPS targets rewarding significant and sustained earnings growth and TSR providing a balance to the financial
performance and retaining a share price discipline in the remuneration package.
For the Conditional Awards to executive Directors to be made in 2007, two separate performance conditions apply to a proportion 
of the award. These have been reviewed to ensure their continued appropriateness:
• The performance condition attached to 50% of the Conditional Awards requires average annual EPS growth from 1 January 2007 
to 31 December 2009 of between RPI plus 4% to RPI plus 10% p.a. for between 30% and 100% of this part of the award to vest 
(i.e. between 15% and 50% of the total award).
• The performance condition attached to the other 50% of the Conditional Awards is based on Total Shareholder Return (“TSR”)
performance measured against the constituents of the FTSE SmallCap Index over a single three-year period from 1 January 2007 
to 31 December 2009 for between 30% for median performance increasing on a straight line basis to 100% for upper quartile
performance of this award to vest (i.e. between 15% (for median) and 50% (for upper quartile performance) of the total award).
• Awards will vest on a straight line basis between minimum and maximum thresholds.
• For Matching Awards, there will be a 0.3:1 match for average EPS growth of RPI plus 4% p.a., rising on a straight line basis to 
the full 1:1 match for average EPS growth of RPI plus 10% p.a..
Performance against the TSR and EPS targets will be independently calculated and reviewed by the Committee. 
Following the approval of the LTIP , shareholding guidelines for executive Directors have been introduced, linked to the out-turn of the 
Plan. At the time Conditional and Matching Awards vest under the Plan (or any other executive plan established in the future), there 
is a requirement to retain no fewer than 50% of the shares net of taxes until a shareholding with a market value equal to 100% of base
salary is achieved.
SAYE Scheme
The Company also operates a SAYE Share Option Scheme, the 2003 SAYE Scheme, for eligible employees under which options may be
granted at a discount of up to 20% of market value. Eligible employees are full time employees and executive Directors who have worked
for the Group for at least one year. Under the terms of the Scheme the eligible employees are able to purchase shares under a three-year
savings contract. Awards under the SAYE scheme were made in 2004 and 2006 to eligible employees and Directors.
Pension arrangements
Executive Directors have individual pension arrangements in the form of personal pension plans. The Company makes a contribution at 
a rate of up to 20% of basic salary towards funding each executive Director’s pension plan. To the extent that this funding exceeds the
relevant current HMRC limit, the surplus may be paid as a salary supplement. There are no unfunded pension promises or similar
arrangement for Directors. Directors’ remuneration report
continued
The Restaurant Group plc 
Annual Report 2006 26
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Performance graph
As required by the Regulations, the graph below compares the Company’s total shareholder return performance with the FTSE 350 
Travel and Leisure Share Index for each of the past five years.
The FTSE 350 Travel and Leisure Share Index has been selected for this comparison because it is the index most relevant 
to gauging the Company’s relative performance.
Total Shareholder Return
This graph shows the value, by 1 January 2007, of £100 invested in The Restaurant Group plc on 1 January 2002 compared with 
the value of £100 invested in the FTSE All-Share Index and the FTSE 350 Travel and Leisure Share Index.
As can be seen, performance against these two indices has been excellent. An investment in shares in The Restaurant Group plc 
on 1 January 2002 would have generated a return of 542% by 1 January 2007 (assuming dividends were reinvested into the shares 
on a net basis over the period).
Directors’ contracts
It is the Company’s policy that executive Directors should have contracts with an indefinite term providing for a maximum of one year’s
notice. However, it may be necessary occasionally to offer longer initial notice periods to new Directors. All executive Directors have
contracts which are subject to one year’s notice by either party. In the event of early termination, the Directors’ contracts provide for
compensation in line with their contractual notice period.
The details of the executive Directors’ contracts are summarised in the table below:
Date of contract Notice period
Andrew Page 28 August 2002 1 year
Stephen M.A. Critoph 7 July 2004 1 year
Kevin J. Bacon 17 March 2003 1 year
Patricia A. Corzine 31 March 2003 1 year
Non-executive Directors
The service contracts of the non-executive Directors were each set for an initial three-year period (thereafter renewable for periods 
of three years). They are required to submit themselves for re election every three years and the Board believes this to be appropriate 
in the Company’s circumstances. Alan M. Jackson, Andrew Thomas and John E. Jackson were re-elected in 2006. In accordance 
with the Articles of Association of the Company, David H. Richardson offers himself for election at the Annual General Meeting of the
Company to be held on 16 May 2007, being the first opportunity for shareholders to approve his appointment.
In accordance with best practice, John E. Jackson is standing for re-election at the Annual General Meeting to be held on 16 May 2007 
as he has served on the Board for more than nine years. 
Their appointments were made as follows:
Date of appointment as non-executive Director Notice period
Alan M. Jackson* 9 November 2005 1 year
John E. Jackson 1 October 1996 nil
Andrew Thomas 1 May 2001 nil
David H. Richardson 1 February 2007 nil
* Alan M. Jackson was previously Executive Chairman of the Company, and was appointed in March 2001. From 1 January 2006 he has
held the position of non-executive Chairman. 
All non-executive Directors have specific terms of engagement and their remuneration is determined by the Board based on a review of
fees paid to non-executive Directors of similar companies and reflects the time commitment and responsibilities of each role. The basic 
fee paid to the non-executive Directors (excluding Alan M. Jackson) in the year was £40,000.
Value (£)
700
600
500
400
300
200
100
0
1 Jan 2002 1 Jan 2003 1 Jan 2004 1 Jan 2005 1 Jan 2006 1 Jan 2007
The Restaurant Group plc
FTSE All-Share Index
FTSE 350 Travel and Leisure Share Index
Source: Thomson Financial The Restaurant Group plc 
Annual Report 2006 27
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Audited information
Aggregated Directors’ remuneration
The total amounts for Directors’ remuneration were as follows:
2006 2005
Non-
Executive executive Total Total
£’000 £’000 £’000 £’000
Emoluments 1,416 394 1,810 2,232
Money purchase pension contributions 284 – 284 178
1,700 394 2,094 2,410
(a) Emoluments
(i) Executive
2006 2005
Basic BonusBenefits
salary Bonus waived in kind Total Total
£’000 £’000 £’000 £’000 £’000 £’000
Andrew Page 340 255 (115) 26 506 478
Stephen M.A. Critoph 180 135 – 18 333 292
Kevin J. Bacon 185 139 – 21 345 327
Patricia A. Corzine 160 120 (60) 12 232 274
Alan M. Jackson
(1)
––––– 741
865 649 (175) 77 1,416 2,112
(1)
Alan M. Jackson was Executive Chairman during 2005, and on 1 January 2006 became non-executive Chairman.
The annual bonuses were at the maximum level of 75% of salary reflecting the excellent profit performance of the Group. Of the bonus
amounts disclosed above, Andrew Page and Patricia A. Corzine elected to waive £114,750 and £60,000 of their bonus respectively
and they received additional pension contributions from the Group equivalent to the amount (which are included in the pension
contribution table below).
(ii) Non-executive
2006 2005
Benefits
Fees in kind Total Total
£’000 £’000 £’000 £’000
Alan M. Jackson 240 37 277 –
John E. Jackson 40 – 40 40
Andrew Thomas 40 – 40 40
Robert Ivell 37 – 37 40
357 37 394 120
(b) Pension schemes
The executive Directors are members of money purchase schemes. Where an executive Director’s entitlement to a contribution exceeds
the allowable limit set by the HMRC, a salary supplement may be payable up to but not exceeding the level of entitlement. Contributions
paid by the Group in respect of the executive Directors were as follows:
2006 2006 2006 2005 2005 2005
Pension Salary Pension Salary 
contribution supplement Total contribution supplement Total
(£’000) (£’000) (£’000) (£’000) (£’000) (£’000)
Andrew Page 141 28 169 20 33 53
Stephen M.A. Critoph 17 – 17 14 – 14
Kevin J. Bacon 19 – 19 14 – 14
Patricia A. Corzine 79 – 79 16 – 16
Alan M. Jackson
(1)
––– 81 – 81
256 28 284 145 33 178
As noted above in respect of the financial year ended 31 December 2006, Andrew Page and Patricia A Corzine elected to waive part 
of their bonus. They received additional pension contributions (grossed up by 6%) from the Group of £121,635 and £63,600 respectively
(which are included in the pension contribution table). Directors’ remuneration report
continued
The Restaurant Group plc 
Annual Report 2006 28
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Directors’ share options
Aggregate emoluments disclosed above do not include any amounts for the value of options to acquire ordinary shares in the Company
granted to or held by the Directors. The Company operates a number of share option schemes which executive Directors may participate in. 
Following the Placing of 19,430,000 shares on 14 January 2004, an application to restate the number and price of share options granted
under the 1998 and 2003 schemes to Directors and employees was approved by the HMRC. This restatement was calculated to ensure
the effective number and price attributed to the options was as before the Placing with no incremental benefit to the option holders. The
information provided below is stated assuming the restatement occurred on 1 January 2004.
At At Date from
2 January 31 December Exercise which Expiry 
Name of Director Scheme 2006 Granted Exercised Lapsed 2006 price exercisable date
Alan M. Jackson Note (1) 800,000 – (400,000) – 400,000 45.0p 5.6.2004 5.6.2011
2003 178,114 – – – 178,114 67.4p 4.7.2006 4.7.2013
2003 200,000 – – – 200,000 97.7p 4.10.2007 4.10.2014
2003 SAYE 11,993 – – – 11,993 79.0p 1.12.2007 1.6.2008
2003 250,000 – – – 250,000 134.4p 4.4.2008 4.4.2015
LTIP (1) 137,755 – – – 137,755 – Publication of 6 months
2008 results after vesting
LTIP (2) 103,316 – – – 103,316 – Publication of 6 months 
2008 results after vesting
Andrew Page 2003 716,223 – – – 716,223 67.4p 4.7.2006 4.7.2013
2003 200,000 – – – 200,000 97.7p 4.10.2007 4.10.2014
2003 SAYE 11,993 – – – 11,993 79.0p 1.12.2007 1.6.2008
2003 250,000 – – – 250,000 134.4p 4.4.2008 4.4.2015
LTIP (1) 180,272 – – – 180,272 – Publication of 6 months
2008 results after vesting
LTIP (2) 67,602 – – – 67,602 – Publication of 6 months
2008 results after vesting
Stephen M.A. Critoph 2003 250,000 – – – 250,000 97.7p 4.10.2007 4.10.2014
2003 50,000 – – – 50,000 134.4p 4.4.2008 4.4.2015
LTIP (1) 112,244 – – – 112,244 – Publication of 6 months
2008 results after vesting
LTIP (2) 42,091 – – (4,924) 37,167 – Publication of 6 months
2008 results after vesting
2006 SAYE – 5,843 – – 5,843 160.0p 1.6.2009 1.12.2009
Kevin J. Bacon 2003 427,071 – (427,071) – – 67.4p 4.7.2006 4.7.2013
2003 100,000 – – – 100,000 97.7p 4.10.2007 4.10.2014
2003 SAYE 11,993 – – – 11,993 79.0p 1.12.2007 1.6.2008
2003 140,000 – – – 140,000 134.4p 4.4.2008 4.4.2015
LTIP (1) 119,047 – – – 119,047 – Publication of 6 months
2008 results after vesting
LTIP (2) 44,642 – – (4,700) 39,942 – Publication of 6 months
2008 results after vesting
Patricia A. Corzine 2003 200,974 – (200,974) – – 67.4p 4.7.2006 4.7.2013
2003 100,000 – – – 100,000 97.7p 4.10.2007 4.10.2014
2003 SAYE 11,993 – – – 11,993 79.0p 1.12.2007 1.6.2008
2003 100,000 – – – 100,000 134.4p 4.4.2008 4.4.2015
LTIP (1) 102,040 – – – 102,040 – Publication of 6 months
2008 results after vesting
LTIP (2) 38,265 – – (4,028) 34,237 – Publication of 6 months
2008 results after vesting The Restaurant Group plc 
Annual Report 2006 29
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Following the year end date of 31 December 2006, the following share options have been granted:
Granted on Date from
8 March Exercise which Expiry 
Name of Director Scheme 2007 price exercisable date
Andrew Page LTIP (3) 145,929 – Publication of 6 months
2009 results after vesting
LTIP (4) 23,110 – Publication of 6 months
2009 results after vesting
Stephen M.A. Critoph LTIP (3) 69,124 – Publication of 6 months
2009 results after vesting
LTIP (4) 20,737 – Publication of 6 months
2009 results after vesting
Kevin J. Bacon LTIP (3) 73,732 – Publication of 6 months
2009 results after vesting
LTIP (4) 21,313 – Publication of 6 months
2009 results after vesting
Patricia A. Corzine LTIP (3) 64,516 – Publication of 6 months
2009 results after vesting
LTIP (4) 18,433 – Publication of 6 months
2009 results after vesting
Under the 2003 Mirror Scheme the performance criteria that must be met requires the Company’s earnings per share to grow at an annual rate of the Retail Price Index plus 2.5% over the three-year period
prior to exercise of the option. No further awards may be made under the 2003 Scheme following the adoption of the LTIP .
LTIP (1) – these are Conditional Shares awarded under the LTIP scheme. They are free shares awarded to the Directors should the performance criteria be met. The vesting criteria are dependent on earnings
per share growth of the 2008 results compared with the 2005 results.
LTIP (2) – these are Matching Shares awarded under the LTIP scheme. They are free shares and are conditional on the Directors acquiring a certain number of shares by 7 May 2006 for the respective Director
to be entitled to the Matching Shares available under the scheme, and the performance criteria be met. The vesting criteria are dependent on earnings per share growth of the 2008 results compared with the
2005 results.
LTIP (3) – these are Conditional Shares awarded under the LTIP scheme. They are free shares awarded to the Directors should the performance criteria be met. The vesting criteria are dependent on earnings
per share growth of the 2009 results compared with the 2006 results.
LTIP (4) – these are Matching Shares awarded under the LTIP scheme. They are free shares and are conditional on the Directors acquiring a certain number of shares by 30 June 2007 for the respective
Director to be entitled to the Matching Shares available under the scheme, and the performance criteria be met. The vesting criteria are dependent on earnings per share growth of the 2009 results compared
with the 2006 results.
Those options awarded under LTIP (3) and LTIP (4) were granted on 8 March 2007.
Note (1): Alan M. Jackson was granted an option over 2,400,000 ordinary shares on 5 June 2001 at an exercise price of 45p per share.
This option was divided into three tranches of 800,000 shares, each of which may only be exercised if certain performance criteria are 
met. The Company’s share price must meet a specified target, which is 75p in the case of the first tranche, 105p in the case of the
second tranche and 135p in the case of the third tranche. In addition, the Remuneration Committee must be satisfied that there has been 
a sustained improvement in the underlying performance of the Group before any tranche of the option can be exercised. For the second
and third tranches, half of each tranche of the option may be exercised after three years and half after four years in each case following 
the date of the grant. Each tranche of the option will lapse six years following the date of the grant if the target share price has not by 
then been met. If, however, the target share price relating to any tranche of the option is met within this period that tranche will remain
exercisable until ten years following the date of grant. If a change of control of the Company occurs, Mr. Jackson is entitled to exercise 
the option in full.
The Company’s share price has met the criteria of the three tranches and the Remuneration Committee is satisfied that there has been 
a sustained improvement in the underlying performance of the Group. Alan M. Jackson has exercised all of those options available to 
him under the first and second tranches, and has exercised half of the third tranche.
During 2006 certain Directors exercised share options that had vested. Details of the exercises are noted below:
2006 2005
Gain on Gain on 
Number Market price exercise exercise
of options Exercise at date of (before tax) (before tax)
Name of director exercised price exercise £000 £000
Alan M. Jackson 400,000 45.0p 205.0p 640 426
Kevin J. Bacon 427,071 67.4p 233.5p 709 177
Patricia A. Corzine 200,974 67.4p 233.5p 334 –
Following the year end date of 31 December 2006, Andrew Page has exercised 716,223 options at a grant price of 67.4 pence and 
Alan M. Jackson has exercised 200,000 options at a grant price of 45.0p.
Approval
This report was approved by the Board of Directors on 4 April 2007 and signed on its behalf by:
Andrew Thomas
Chairman of the Remuneration Committee Report of the 
independent auditors
The Restaurant Group plc 
Annual Report 2006 30
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Report to the shareholders of The Restaurant Group plc
We have audited the Group and parent company financial statements (the “financial statements”) of The Restaurant Group plc for the year
ended 31 December 2006 which comprise the consolidated income statement, the consolidated and parent company balance sheets, the
consolidated cash flow statement, the consolidated statement of changes in shareholders’ equity and the related notes. These financial
statements have been prepared under the accounting policies set out therein. We have also audited the information in the Directors’
remuneration report that is described as having been audited.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report and the Group financial statements in accordance with applicable law and
International Financial Reporting Standards (“IFRSs”) as adopted by the European Union, and for preparing the parent company financial
statements and the Directors’ remuneration report in accordance with applicable law and United Kingdom Accounting Standards (United
Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Directors’ responsibilities.
Our responsibility is to audit the financial statements and the part of the Directors’ remuneration report to be audited in accordance with
relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements and the
part of the Directors’ remuneration report to be audited have been properly prepared in accordance with the Companies Act 1985 and
whether, in addition, the Group financial statements have been properly prepared in accordance with Article 4 of the IAS Regulation. We
also report to you if, in our opinion, the Report of the Directors is not consistent with the financial statements, if the company has not kept
proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified
by law regarding Directors’ remuneration and other transactions is not disclosed. 
We review whether the Corporate Governance Statement reflects the Company’s compliance with the nine provisions of the 2003 FRC
Combined Code specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are not
required to consider whether the Board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness
of the Group’s corporate governance procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. 
The other information comprises only the report of the Directors including the corporate governance statement, the unaudited part of the
Directors’ remuneration report, the Chairman’s statement, the Chief Executive Officer’s review of operations, the Group Finance Director’s
review, the financial highlights and the Group financial record. We consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
Our report has been prepared pursuant to the requirements of the Companies Act 1985 and for no other purpose. No person is entitled to
rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of the Companies Act
1985 or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report
to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board.
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part
of the Directors’ remuneration report to be audited. It also includes an assessment of the significant estimates and judgements made by
the Directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Group’s and
Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us with sufficient evidence to give reasonable assurance that the financial statements and the part of the Directors’ remuneration
report to be audited are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we
also evaluated the overall adequacy of the presentation of information in the financial statements and the part of the Directors’
remuneration report to be audited. The Restaurant Group plc 
Annual Report 2006 31
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Opinion
In our opinion:
• the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state 
of the Group’s affairs as at 31 December 2006 and of its profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS
Regulation;
• the parent company financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting
Practice, of the state of the parent company’s affairs as at 31 December 2006;
• the parent company financial statements and the part of the Directors’ remuneration report to be audited have been properly prepared
in accordance with the Companies Act 1985; and
• the information given in the report of the Directors is consistent with the financial statements.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
London
4 April 2007 Accounting policies for 
the consolidated accounts
The Restaurant Group plc 
Annual Report 2006 32
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Significant accounting policies
The Restaurant Group plc (the “Company”) is a company incorporated and registered in Scotland. The consolidated financial statements 
of the Company for the year ended 31 December 2006 comprise the Company and its subsidiaries (together referred to as the “Group”)
and the Group’s interest in its associate. 
(a) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) and 
its interpretations adopted by the International Accounting Standards Board (“IASB”) and as adopted by the European Union. 
(b) Basis of preparation
For accounting periods commencing on or after 1 January 2005, the accounting year runs to the nearest Sunday to 31 December each
year which will be a 52 or 53 week period. 
The financial statements are presented in sterling, rounded to the nearest thousand. They are prepared on the historical cost basis except
derivative financial instruments which are held at their fair value. Non-current assets and disposal groups held for sale are stated at the
lower of carrying amount and fair value less costs to sell. 
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the
results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the 
revision affects both current and future periods.
Future accounting policies
IFRS 7 “Financial instruments: disclosures” will be mandatory for the Group for the year ending 30 December 2007. This will require 
the Group to amend certain disclosures in relation to its financial instruments, but will have no impact on the results presented. IAS 1
Amendment – Capital Disclosures will also be mandatory for the Group for the year ending 30 December 2007, and this will not have any
impact on the results presented but will amend certain disclosures. IFRS 8 “Operating Segments” will be mandatory for the Group for the
2009 year end results, and again will provide amendments to disclosures but will not change the Group’s result. The Group does not
consider that any other standards or interpretations issued by the IASB, but not yet applicable, will have a significant impact on the 
financial statements.
(c) Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern 
the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that
presently are exercisable or convertible are taken into account, regardless of management’s intention to exercise that option or warrant.
The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until
the date that control ceases.
(ii) Associates
Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. The
consolidated financial statements include the Group’s share of the total recognised gains and losses of associates on an equity accounted
basis, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of losses
exceeds its interest in an associate, the Group’s carrying amount would be reduced to nil and recognition of further losses is discontinued
except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of an associate.
(iii) Transactions eliminated on consolidation
Intragroup balances and any gains and losses or income and expenses arising from intragroup transactions are eliminated in preparing 
the consolidated financial statements. Unrealised gains arising from transactions with associates are eliminated to the extent of the Group’s
interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence
of impairment.
(d) Foreign currency
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the date of the balance sheet.
Transactions in foreign currencies are translated into sterling at the rate of exchange at the date of the transaction. The profit and loss
accounts for overseas operations are translated at the average rate of exchange for the periods covered by the accounts. Exchange
differences that relate to the net equity investment in overseas activities are taken directly to reserves. All other translation differences 
are taken to the income statement.
(e) Derivative financial instruments
The Group uses derivative financial instruments to hedge its exposure to interest rate risks arising from operational, financing and
investment activities. In accordance with its treasury policy, the Group does not hold or issue derivative financial instruments for trading
purposes. However, derivatives that do not qualify for hedge accounting are accounted for as trading instruments. The Restaurant Group plc 
Annual Report 2006 33
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Derivative financial instruments are recognised initially at cost. Subsequent to initial recognition, derivative financial instruments are stated at
fair value. The gain or loss on remeasurement to fair value is recognised immediately in the income statement. However, where derivatives
qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged.
The fair value of interest rate swaps is the estimated amount that the Group would receive or pay to terminate the swap at the balance
sheet date, taking into account current interest rates and the current creditworthiness of the swap counterparties.
(f) Property, plant and equipment
Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses (see
accounting policy k). 
Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property,
plant and equipment.
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. The
owner-occupied property (excluding land element) acquired by way of finance lease is stated at an amount equal to the lower of its fair
value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation (see below) and
impairment losses (see accounting policy k). Lease payments are accounted for as described in accounting policy r.
Subsequent costs
The Group recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when
that cost is incurred if it is probable that the future economic benefits embodied within the item will flow to the Group and the cost of the
item can be measured reliably. All other costs are recognised in the income statement as an expense as incurred.
Depreciation
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each part of an item of property,
plant and equipment. The estimated useful lives are as follows:
Freehold land Indefinite
Freehold buildings 50 years
Long and short leasehold property Term of lease or 25 years, whichever is lower
Fixtures and equipment 3-10 years
Motor vehicles 4 years
Computer equipment 3-5 years
(g) Intangible assets – goodwill
All business combinations are accounted for by applying the purchase method. Goodwill represents amounts arising on acquisition 
of subsidiaries. In respect of business acquisitions that have occurred since 1 January 2004, goodwill represents the difference between
the cost of the acquisition and the fair value of the net identifiable assets acquired.
The classification and accounting treatment of business combinations that occurred prior to 1 January 2004 has not been reconsidered 
in preparing the Group’s opening IFRS balance sheet at 1 January 2004.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash generating units and is tested annually 
for impairment (see accounting policy k). In respect of associates, the carrying amount of goodwill is included in the carrying amount of 
the investment in the associate.
Negative goodwill arising on an acquisition is recognised directly in the income statement.
(h) Trade and other receivables
Trade and other receivables are stated at their cost less impairment losses (see accounting policy k).
(i) Stock
Stock is stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course 
of business, less the estimated costs of completion and selling expenses.
(j) Cash and cash equivalents
Cash and cash equivalents comprises cash balances and call deposits. Bank overdrafts that are repayable on demand and form an
integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the statement
of cash flows.
(k) Impairment
The carrying amounts of the Group’s assets are reviewed at each balance sheet date to determine whether there is any indication of
impairment. If any such indication exists, the asset’s recoverable amount is estimated. For goodwill and assets that have an indefinite
useful life, the recoverable amount is estimated at each balance sheet date. An impairment loss is recognised whenever the carrying
amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement. Accounting policies for 
the consolidated accounts
continued
The Restaurant Group plc 
Annual Report 2006 34
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
(l) Share-based payment transactions
The share option programme allows Group employees to acquire shares of the Company. The fair value of options granted is recognised
as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period
during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using a
Stochastic model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an
expense is adjusted to reflect the actual number of share options that vest except where forfeiture is only due to market based conditions
not achieving the threshold for vesting.
(m) Provisions
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past event,
and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value 
of money and, where appropriate, the risks specific to the liability.
(n) Deferred tax
Deferred tax is recognised in respect of all temporary differences identified at the balance sheet date, except to the extent that the deferred
tax arises from the initial recognition of goodwill. Temporary differences are differences between the carrying amount of the Group’s assets
and liabilities and their tax base.
(o) Pensions
The Group makes contributions for selected employees into defined contribution pension plans and these contributions are charged to the
income statement as they become payable. The Group does not operate any defined benefit plans.
(p) Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the
unavoidable cost of meeting its obligations under the contract.
(q) Revenue
Revenue represents amounts received and receivable for services and goods provided (excluding value added tax and voluntary gratuities
left by customers for the benefit of employees).
(r) Expenses
(i) Operating lease payments
Payments made under operating leases are recognised in the income statement on a straight line basis over the term of the lease.
(ii) Finance lease payments
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is
allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
(iii) Pre-opening expenses
Property rentals and related costs incurred up to the date of opening of a new restaurant are written off to the income statement in the year 
in which they are incurred. Promotional and training costs are written off to the income statement in the year in which they are incurred.
(s) Dividend policy
In accordance with IAS 10, ‘Events after the Balance Sheet Date’, dividends declared after the balance sheet date are not recognised 
as a liability at that balance sheet date, and are recognised in the financial statements when they have received approval by shareholders.
Critical accounting judgements and key sources of estimation and uncertainty
In the process of applying the Group’s accounting policies as described above, management has made the following judgements and
estimations that have the most significant effect on the amounts recognised in the financial statements:
(a) Impairment of carrying value of loan note from associate
Following a detailed review of the carrying value of Living Ventures, and in light of current trading performance, the Board has concluded
that it is appropriate to make a provision of £9.5m against the loan note repayable in 2008.
(b) Impairment of goodwill
The Group determines whether goodwill is impaired at least on a twice-annual basis. This requires an estimate of the value in use of the
assets to which goodwill is ascribed. Estimating the value-in-use requires the Group to make an estimate of the future cash flows from
those assets and to choose a suitable discount rate in order to calculate the present value of those cash flows. Note 11 provides further
information on assumptions used.
(c) DPP Restaurants Limited
DPP Restaurants Ltd (“DPP”) was consolidated as a subsidiary under IAS 27 throughout 2005 even though The Restaurant Group plc
(“TRG” or “The Group”) legally only held 19.9% of the issued share capital due to the existence of an option to take full control of DPP
which became exercisable on 31 December 2004. The additional income statement segregates the results of DPP in 2005 when the
business was not under the direct control of the Board. TRG acquired full control of DPP on 12 January 2006 for a nominal sum and
therefore the Group results include those of DPP in 2006 (as detailed further in note 2). Consolidated 
income statement
The Restaurant Group plc 
Annual Report 2006 35
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Year ended 31 December 2006 Year ended 1 January 2006
Continuing Discontinued Total Continuing Discontinued Total
Note £’000 £’000 £’000 £’000 £’000 £’000
Revenue 3 314,018 730 314,748 263,878 38,450 302,328
Cost of sales 4 (256,060) (1,026) (257,086) (218,049) (34,528) (252,577)
Gross profit/(loss) 57,958 (296) 57,662 45,829 3,922 49,751
Administration costs 4 (18,475) – (18,475) (19,019) (777) (19,796)
Release of accrual for property exit costs 5 – – – 1,700 – 1,700
Provision against carrying value 
of loan note from associate 5 (9,500) – (9,500) –––
Loss on integration of DPP 5 (4,582) – (4,582) –––
Loss and provision for loss on disposal 
of fixed assets 5 – – – (2,594) – (2,594)
Operating profit/(loss) 25,401 (296) 25,105 25,916 3,145 29,061
Interest payable 7 (3,308) – (3,308) (2,692) – (2,692)
Interest receivable 7 699 – 699 689 – 689
Profit/(loss) before share 
of associate and tax 22,792 (296) 22,496 23,913 3,145 27,058
Share of post-tax result in 
associated undertaking 13 (917) – (917) (600) – (600)
Profit/(loss) before tax 21,875 (296) 21,579 23,313 3,145 26,458
Profit/(loss) before tax, analysed as:
Trading business – managed 35,312 (296) 35,016 26,394 3,145 29,539
DPP Restaurants Limited trading result – 
not managed – – – (1,733) – (1,733)
Non-trading items 5 (13,437) – (13,437) (1,348) – (1,348)
21,875 (296) 21,579 23,313 3,145 26,458
Tax on profit/(loss) from ordinary activities 8 (11,264) 101 (11,163) (7,567) (1,050) (8,617)
Profit/(loss) on ordinary activities after tax 10,611 (195) 10,416 15,746 2,095 17,841
Profit on sale of businesses net of tax 5 – 3,950 3,950 – 5,504 5,504
Profit for the financial year 
attributable to equity shareholders 10,611 3,755 14,366 15,746 7,599 23,345
Earnings per share (pence)
Basic 9 5.36 1.90 7.26 7.27 3.51 10.78
Diluted 9 5.34 1.89 7.23 7.22 3.48 10.70
Dividend per share (pence) – ordinary 10 6.00 4.75
– special 10 16.00 – Consolidated statement 
of changes in equity
The Restaurant Group plc 
Annual Report 2006 36
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Year ended Year ended 
31 December 1 January 
2006 2006
Note £’000 £’000
Opening equity (IFRS, excluding IAS 32 and IAS 39) 91,436 75,883
Adjustment to opening equity for inclusion of swaps under IAS 32 and IAS 39 – 127
Opening equity (IFRS, including IAS 32 and IAS 39) 91,436 76,010
Profit for the year 14,366 23,345
Foreign exchange translation differences 1 (165)
Deferred tax credit on share-based payments taken directly to equity 1,529 411
Total recognised income and expense for the year 15,896 23,591
Dividends – ordinary 10 (9,490) (9,277)
Dividends – special 10 (34,793) –
Issue of new shares 19, 21 1,096 604
Share-based payments – credit to equity 20 1,059 508
Total changes in equity in the year (26,232) 15,426
Closing equity 65,204 91,436 The Restaurant Group plc 
Annual Report 2006 37
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Consolidated balance sheet
At At 
31 December 1 January 
2006 2006
Note £’000 £’000
Non-current assets
Intangible assets 11 11,275 11,275
Property, plant and equipment 12 174,035 151,337
Investment in associate 13 7,810 8,727
Trade and other receivables 13 875 10,375
193,995 181,714
Current assets
Stock 14 2,992 2,763
Financial assets – derivative financial instruments 24 652 7
Trade and other receivables 15 5,170 5,498
Prepayments 12,138 11,094
Cash and cash equivalents 23 683 426
21,635 19,788
Total assets 215,630 201,502
Current liabilities
Short-term borrowings 23 (1,165) (1,845)
Income tax liabilities (4,947) (8,315)
Trade and other payables 16 (74,864) (71,476)
(80,976) (81,636)
Net current liabilities (59,341) (61,848)
Non-current liabilities
Long-term borrowings 23 (47,000) (11,000)
Other payables 25 (2,737) (2,696)
Deferred tax liabilities 18 (16,247) (13,971)
Provisions 17 (3,466) (763)
(69,450) (28,430)
Net assets 65,204 91,436
Equity
Share capital 19 54,863 54,366
Share premium 21 20,346 19,747
Foreign currency reserve 21 81 80
Other reserves 21 1,823 764
Retained earnings 21 (11,909) 16,479
Total equity shareholders’ interests 65,204 91,436
The financial statements on pages 32 to 56 were approved by the Board of Directors and authorised for issue on 4 April 2007 and were
signed on its behalf by:
Alan M. Jackson Stephen M.A. Critoph ACA
Non-executive Chairman Group Finance Director The Restaurant Group plc 
Annual Report 2006 38
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Consolidated cash flow
statement
Year ended Year ended
31 December 1 January
2006 2006
Note £’000 £’000
Cash flows from operating activities
Cash generated from operations 22 63,374 55,484
Interest received 68 219
Interest paid (2,906) (2,076)
Tax paid (9,656) (8,199)
Net cash flows from operating activities 50,880 45,428
Cash flows from investing activities
Acquisition of associate – (10,186)
Acquisition of subsidiary, net of cash acquired – (26,889)
Disposal of business, net of cash disposed (1,455) 32,982
Disposal of subsidiary, net of cash disposed – 5,630
Integration of business (584) –
Purchase of property, plant and equipment (40,775) (39,767)
Proceeds from sale of property, plant and equipment 58 708
Net cash used in investing activities (42,756) (37,522)
Cash flows from financing activities
Net proceeds from issue of ordinary share capital 1,096 604
Net proceeds from issue of bank loan 36,000 4,000
Dividends paid to shareholders (44,283) (9,277)
Net cash used in financing activities (7,187) (4,673)
Net increase in cash and cash equivalents 937 3,233
Cash and cash equivalents at start of year 23 (1,419) (4,652)
Cash and cash equivalents at end of year 23 (482) (1,419) The Restaurant Group plc 
Annual Report 2006 39
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
1 Segmental analysis
Year ended 31 December 2006
EBITDA Profit
Turnover EBITDA Margin Profit Margin
£’000 £’000 % £’000 %
Leisure 236,258 62,703 26.5% 50,745 21.5%
Concessions 72,479 15,154 20.9% 11,088 15.3%
Principal trading brands 308,737 77,857 25.2% 61,833 20.0%
Non-core brands 5,281 (1,789) (33.9%) (1,999) (37.8%)
Continuing operations 314,018 76,068 24.2% 59,834 19.1%
Discontinued operations 730 (296) (40.6%) (296) (40.6%)
Total all brands 314,748 75,772 24.1% 59,538 18.9%
Pre-opening costs (included in cost of sales) (1,876) (0.6%) (1,876) (0.6%)
Administration (17,192) (5.5%) (17,416) (5.5%)
Share-based payments (1,059) (0.3%) (1,059) (0.3%)
EBITDA/operating profit 314,748 55,645 17.7% 39,187 12.5%
Release of accrual for property exit costs –
Provision against carrying value of loan note from associate (9,500)
Loss on integration of DPP (4,582)
Restructuring costs –
Loss and provision for loss on disposal of fixed assets –
Operating profit 25,105
Year ended 1 January 2006
EBITDA Profit
Turnover EBITDA Margin Profit Margin
£’000 £’000 % £’000 %
Leisure 189,009 49,541 26.2% 39,974 21.1%
Concessions 59,771 12,360 20.7% 8,919 14.9%
Principal trading brands 248,780 61,901 24.9% 48,893 19.7%
Non-core brands 15,098 (785) (5.2%) (1,553) (10.3%)
Continuing operations 263,878 61,116 23.2% 47,340 17.9%
Discontinued operations 38,450 6,977 18.1% 3,922 10.2%
Total all brands 302,328 68,093 22.5% 51,262 17.0%
Pre-opening costs (included in cost of sales) (1,511) (0.5%) (1,511) (0.5%)
Administration (17,179) (5.7%) (18,954) (6.3%)
Share-based payments (508) (0.2%) (508) (0.2%)
EBITDA/operating profit 302,328 48,895 16.2% 30,289 10.0%
Release of accrual for property exit costs 1,700
Provision against carrying value of loan note from associate –
Loss on integration of DPP –
Restructuring costs (334)
Loss and provision for loss on disposal of fixed assets (2,594)
Operating profit 29,061
No geographical segment analysis has been provided as the Directors do not consider there to be materially significant geographical
segments. The Group currently operates three restaurants outside of the United Kingdom. 
Notes to the accounts
for the year ended 31 December 2006 The Restaurant Group plc 
Annual Report 2006 40
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Notes to the accounts continued
1 Segmental analysis continued
Year ended 31 December 2006
Capital Segment Segment
Depreciation additions assets liabilities
£’000 £’000 £’000 £’000
Leisure 11,958 31,628 167,970 43,086
Concessions 4,066 5,087 19,099 11,504
Principal trading brands 16,024 36,715 187,069 54,590
Non-core brands 210 – 2,233 7,112
Continuing operations 16,234 36,715 189,302 61,702
Discontinued operations – – – 2,568
Total all brands 16,234 36,715 189,302 64,270
Central items 224 4,060 10,920 10,614
Unallocated items – – 15,408 75,542
DPP Restaurants Limited ––––
Total Group 16,458 40,775 215,630 150,426
Year ended 1 January 2006
Capital Segment Segment
Depreciation additions assets liabilities
£’000 £’000 £’000 £’000
Leisure 9,567 26,980 145,293 31,518
Concessions 3,441 6,794 17,431 9,371
Principal trading brands 13,008 33,774 162,724 40,889
Non-core brands 210 – 3,538 2,837
Continuing operations 13,218 33,774 166,262 43,726
Discontinued operations 3,055 864 – 5,603
Total all brands 16,273 34,638 166,262 49,329
Central items 1,775 6,272 7,562 16,169
Unallocated items – – 25,444 42,845
DPP Restaurants Limited 558 147 2,234 1,723
Total Group 18,606 41,057 201,502 110,066
Segmental assets are allocated to divisions where possible. Unallocated segmental assets include the investment in associate, 
non-current and current trade and other receivables, derivative financial instruments, cash and cash equivalents and certain prepayments.
Unallocated liabilities include borrowings, provisions, income and deferred tax and certain accruals and other creditors. The Restaurant Group plc 
Annual Report 2006 41
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Note 2 – Additional income statement
Additional income statement information is provided as a useful guide to underlying trading performance. The adjustments from the
statutory income statement are to aid understanding of the income statement and should be read in conjunction with, rather than as 
a substitute for, the reported information.
DPP Restaurants Ltd (“DPP”) was consolidated as a subsidiary under IAS 27 throughout 2005 even though The Restaurant Group plc
(“TRG” or “The Group”) legally only held 19.9% of the issued share capital due to the existence of an option to take full control of DPP
which became exercisable on 31 December 2004. The additional income statement segregates the results of DPP in 2005 when the
business was not under the direct control of the Board. TRG acquired full control of DPP on 12 January 2006 for a nominal sum and
therefore the Group results include those of DPP in 2006. 
The 2006 and 2005 results include a number of items which are of a one-off nature and not representative of the underlying trading
performance of the business. These have been separately identified in the additional income statement as non-trading items.
For the purposes of the additional income statement, a normalised tax rate of 34% has been applied to the trading business to reflect 
the underlying effective tax rate.
Note 2a – Additional income statement
Year ended 31 December 2006
Continuing Discontinued Trading Non- DPP
operations operations business trading trading Total
£’000 £’000 £’000 £’000 £’000 £’000
Revenue 314,018 730 314,748 – – 314,748
Cost of sales:
Excluding pre-opening costs (254,184) (1,026) (255,210) –– (255,210)
Pre-opening costs (1,876) – (1,876) –– (1,876)
(256,060) (1,026) (257,086) –– (257,086)
Gross profit/(loss) 57,958 (296) 57,662 – – 57,662
Administration costs:
Excluding one-off costs (18,475) – (18,475) –– (18,475)
Restructuring costs – – – –– –
(18,475) – (18,475) –– (18,475)
Trading profit/(loss) 39,483 (296) 39,187 – – 39,187
Release of accrual for property exit costs – – – –– –
Provision against carrying value of loan note from associate – – – (9,500) – (9,500)
Loss on integration of DPP – – – (4,582) – (4,582)
Loss and provision for loss on disposal of fixed assets – – – –– –
Operating profit/(loss) 39,483 (296) 39,187 (14,082) – 25,105
Interest payable (3,308) – (3,308) –– (3,308)
Interest receivable 54 – 54 645 – 699
Profit/(loss) before share of associate and tax 36,229 (296) 35,933 (13,437) – 22,496
Share of post-tax result in associated undertaking (917) – (917) –– (917)
Profit/(loss) on ordinary activities before tax 35,312 (296) 35,016 (13,437) – 21,579
Tax on profit/(loss) from ordinary activities (12,364) 101 (12,263) 1,100 – (11,163)
Profit/(loss) on ordinary activities after tax 22,948 (195) 22,753 (12,337) – 10,416
Profit on sale of businesses net of tax –– – 3,950 – 3,950
Profit/(loss) for the year 22,948 (195) 22,753 (8,387) – 14,366
Earnings per share (pence)
Basic 11.50 7.26
Diluted 11.45 7.23
Dividend per share (pence) – ordinary 6.00
– special 16.00 The Restaurant Group plc 
Annual Report 2006 42
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Note 2a – Additional income statement continued
Year ended 1 January 2006
Continuing Discontinued Trading Non- DPP
operations operations business trading trading Total
£’000 £’000 £’000 £’000 £’000 £’000
Revenue 248,843 38,450 287,293 – 15,035 302,328
Cost of sales:
Excluding pre-opening costs (200,851) (34,528) (235,379) – (15,687) (251,066)
Pre-opening costs (1,511) – (1,511)– – (1,511)
(202,362) (34,528) (236,890) – (15,687) (252,577)
Gross profit/(loss) 46,481 3,922 50,403 – (652) 49,751
Administration costs:
Excluding one-off costs (17,664) (777) (18,441) – (1,021) (19,462)
Restructuring costs – – – (334) – (334)
(17,664) (777) (18,441) (334) (1,021) (19,796)
Trading profit/(loss) 28,817 3,145 31,962 (334) (1,673) 29,955
Release of accrual for property exit costs – – – 1,700 – 1,700
Provision against carrying value of loan note from associate – – – –– –
Loss on integration of DPP – – – –– –
Loss and provision for loss on disposal of fixed assets – – – (2,594) – (2,594)
Operating profit/(loss) 28,817 3,145 31,962 (1,228) (1,673) 29,061
Interest payable (2,512) – (2,512) (120) (60) (2,692)
Interest receivable 689 – 689 –– 689
Profit/(loss) before share of associate and tax 26,994 3,145 30,139 (1,348) (1,733) 27,058
Share of post-tax result in associated undertaking (600) – (600) –– (600)
Profit/(loss) on ordinary activities before tax 26,394 3,145 29,539 (1,348) (1,733) 26,458
Tax on profit/(loss) from ordinary activities (8,817) (1,050) (9,867) 470 780 (8,617)
Profit/(loss) on ordinary activities after tax 17,577 2,095 19,672 (878) (953) 17,841
Profit on sale of businesses net of tax – – – 5,504 – 5,504
Profit/(loss) for the year 17,577 2,095 19,672 4,626 (953) 23,345
Earnings per share (pence)
Basic 9.08 10.78
Diluted 9.01 10.70
Dividend per share (pence) – ordinary 4.75
– special –
Notes to the accounts continued The Restaurant Group plc 
Annual Report 2006 43
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Note 2b – Additional information
Year ended 31 December 2006
EBITDA Profit
Turnover EBITDA Margin Profit Margin
£’000 £’000 % £’000 %
Leisure 236,258 62,703 26.5% 50,745 21.5%
Concessions 72,479 15,154 20.9% 11,088 15.3%
Principal trading brands 308,737 77,857 25.2% 61,833 20.0%
Non-core brands 5,281 (1,789) (33.9%) (1,999) (37.8%)
Continuing operations 314,018 76,068 24.2% 59,834 19.1%
Discontinued operations 730 (296) (40.6%) (296) (40.6%)
Total all brands 314,748 75,772 24.1% 59,538 18.9%
Pre-opening costs (included in cost of sales) (1,876) (0.6%) (1,876) (0.6%)
Administration (17,192) (5.5%) (17,416) (5.5%)
Share-based payments (1,059) (0.3%) (1,059) (0.3%)
EBITDA/operating profit 314,748 55,645 17.7% 39,187 12.5%
Total net interest charges (3,254)
Profit before taxation and share of associate’s result 35,933
Share of losses of associated undertaking (917)
Profit before taxation 35,016
Taxation (12,263)
Profit after taxation 22,753
Earnings per share (pence) – trading business
Basic 11.50
Diluted 11.45
Year ended 1 January 2006
EBITDA Profit
Turnover EBITDA Margin Profit Margin
£’000 £’000 % £’000 %
Leisure 189,009 49,541 26.2% 39,974 21.1%
Concessions 59,771 12,360 20.7% 8,919 14.9%
Principal trading brands 248,780 61,901 24.9% 48,893 19.7%
Non-core brands 63 (691) – (901) –
Continuing operations 248,843 61,210 24.6% 47,992 19.3%
Discontinued operations 38,450 6,977 18.1% 3,922 10.2%
Total all brands 287,293 68,187 23.7% 51,914 18.1%
Pre-opening costs (included in cost of sales) (1,511) (0.5%) (1,511) (0.5%)
Administration (16,158) (5.6%) (17,933) (6.2%)
Share-based payments (508) (0.2%) (508) (0.2%)
EBITDA/operating profit 287,293 50,010 17.4% 31,962 11.1%
Total net interest charges (1,823)
Profit before taxation and share of associate’s result 30,139
Share of losses of associated undertaking (600)
Profit before taxation 29,539
Taxation (9,867)
Profit after taxation 19,672
Earnings per share (pence) – trading business
Basic 9.08
Diluted 9.01
No geographical segment analysis has been provided as the Directors do not consider there to be materially significant geographical
segments. The Group currently operates three restaurants outside of the United Kingdom. The Restaurant Group plc 
Annual Report 2006 44
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Notes to the accounts continued
3 Revenue
2006 2005
£’000 £’000
Revenue consists of the following:
Continuing business – owned and managed during the year 314,018 248,843
DPP Restaurants Limited – 15,035
Continuing operations 314,018 263,878
Discontinued operations 730 38,450
Total revenue for the year 314,748 302,328
DPP Restaurants Ltd (“DPP”) was consolidated as a subsidiary under IAS 27 throughout 2005 even though The Restaurant Group plc
(“TRG” or “The Group”) legally only held 19.9% of the issued share capital due to the existence of an option to take full control of DPP
which became exercisable on 31 December 2004. The results of DPP in 2005 are segregated as the business was not under the direct
control of the Board. TRG acquired full control of DPP on 12 January 2006 for a nominal sum and therefore the Group results include
those of DPP in 2006. 
4 Profit from operations
2006 2005
£’000 £’000
Included in cost of sales are the following:
Continuing business – owned and managed during the year 254,184 200,851
Pre-opening costs 1,876 1,511
DPP Restaurants Limited – 15,687
Continuing operations 256,060 218,049
Discontinued operations 1,026 34,528
Total cost of sales for the year 257,086 252,577
Included in administration costs are the following:
Continuing business – owned and managed during the year 18,475 17,664
Restructuring costs – 334
DPP Restaurants Limited – 1,021
Continuing operations 18,475 19,019
Discontinued operations – 777
Total administration costs for the year 18,475 19,796
Other amounts included within operating expenses are:
Depreciation 16,458 18,606
Operating lease rentals of land and buildings 44,102 41,813
Rental income (5,960) (3,406)
Auditor’s remuneration:
Audit services 113 105
Audit-related regulatory reporting 25 23
Tax compliance services 58 36
Further assurance reviews 14 13
Fees in respect of transactions – 110
Audit services by overseas affiliate 5 5
Other advisory fees 33 5
Audit fees included in the above total relating to the Company are borne by a subsidiary undertaking. Of the total fees paid to auditors, 
£248,000 was expensed as administration costs. In 2005, of the total fees paid to auditors, £187,000 was expensed as administration
costs, £73,000 was expensed as professional fees incurred on disposal of businesses and £37,000 was capitalised as part of the
professional fees incurred on acquisition. The Restaurant Group plc 
Annual Report 2006 45
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
5 Non-trading items
2006 2005
£’000 £’000
a) Items classified as non-trading within ordinary activities:
i) Provision against carrying value of loan note from associate (9,500) –
ii) Loss on integration of DPP (4,582) –
iii) Finance gain/(charge) arising from remeasurement of interest rate swap 645 (120)
iv) Release of accrual for property exit costs – 1,700
iv) Loss and provision for loss on disposal of fixed assets – (2,594)
iv) Restructuring costs – (334)
(13,437) (1,348)
i) Following a detailed review of the carrying value of Living Ventures, and in light of current trading performance, the Board has concluded
that it is appropriate to make a provision of £9.5m against the loan note repayable in 2008.
ii) The loss on integration of the Deep Pan Pizza business is in relation to costs incurred on employee and contract terminations and 
a number of property costs including the write down of the carrying value of the business on integration, provisions for onerous leases 
and premiums on disposal of some of the properties.
iii) The Group has taken a credit of £0.6m (2005: £0.1m charge) in respect of the remeasurement of its interest rate swap (more detail 
is provided in note 24).
iv) In 2005, the Group incurred a net charge of £0.9m in respect of loss and provision for loss on disposal of assets and a charge 
of £0.3m on restructuring costs.
2006 2005
£’000 £’000
b) Profit on sale of business:
i) Profit on disposal of Est Est Est Restaurants Limited 184 1,582
ii) Profit on disposal of the Caffe Uno business 2,696 3,692
iii) Share of profit made on disposal of business by associate – 400
2,880 5,674
Tax on sale of businesses 1,070 (170)
Profit on sale of business after tax 3,950 5,504
i) On 31 March 2005, the Group sold Est Est Est Limited to Living Ventures Limited and a profit of £1.6m was recognised. A further profit
of £0.2m has been recognised in 2006.
ii) On 12 December 2005, the Group disposed of 53 of the 59 sites that formed the Caffe Uno brand to Paramount for a profit of £3.7m. 
In 2006, a further £2.7m profit has been recognised following the release of accruals in respect of dilapidations and warranty claims that
are no longer required as they have become time-lapsed, and following the completion of better than anticipated deals on disposal of
some of the sites not sold to Paramount.
iii) In 2005, a profit of £0.4m was recognised in respect of the share of profit on disposal of part of the business by Living Ventures Limited.
6 Staff costs and numbers
2006 2005
a) Staff costs (including Directors) comprise: £’000 £’000
Wages and salaries 86,403 84,123
Social security costs 6,759 6,482
Share-based payments 1,059 508
Pension costs 258 333
94,479 91,446
b) Staff numbers
United Kingdom 7,579 7,430
Europe 84 92
7,663 7,522
c) Directors’ remuneration £’000 £’000
Emoluments 1,810 2,232
Money purchase (and other) pension contributions 284 178
2,094 2,410
Charge in respect of share options 586 232
2,680 2,642
Further details of the Directors’ emoluments and the executive pension schemes are given in the Directors’ remuneration report on 
pages 24 to 29, of which the information on pages 27 to 29 has been audited. The Restaurant Group plc 
Annual Report 2006 46
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Notes to the accounts continued
7 Net finance charges
2006 2005
£’000 £’000
Bank interest receivable 11 15
Interest receivable on loan note due from Living Ventures (net of provision) – 522
Other interest receivable 43 152
Fair value credit on interest rate swap 645 –
Interest receivable 699 689
Bank interest payable 2,816 1,833
Other interest payable 149 290
Interest on obligations under finance leases 343 449
Fair value charge on interest rate swap – 120
Total borrowing costs 3,308 2,692
Net finance charges 2,609 2,003
8 Taxation
2006 2005
£’000 £’000
a) The taxation charge comprises:
Current taxation
UK corporation tax at 30% 8,594 9,202
Adjustments in respect of previous periods (115) (187)
8,479 9,015
Deferred taxation
Origination and reversal of timing differences 2,684 15
Adjustments in respect of previous periods – (413)
2,684 (398)
Taxation charge on ordinary activities 11,163 8,617
Taxation (credit)/charge on disposal of businesses (1,070) 170
Total taxation charge for the year, including impact of disposal of businesses 10,093 8,787
b) Factors affecting the tax charge for the year
The tax assessment for the year is higher than the standard UK corporation tax rate of 30% due to the following factors:
2006 2005
£’000 £’000
Profit on ordinary activities before taxation 21,579 26,458
Profit on ordinary activities before taxation multiplied
by the standard UK corporation tax rate of 30% (2005: 30%) 6,474 7,937
Effects of:
Loss made by associate, with no tax credit available 276 60
Depreciation on non-qualifying assets 1,555 1,373
Expenses not deductible for tax purposes 3,110 150
Loss on disposal of non-qualifying assets 710 152
Rolled over gain – 113
Tax deduction for exercise of share options (847) (308)
Recognition of tax losses in DPP Restaurants Limited not previously recognised – (260)
Adjustment in respect of previous years (115) (600)
Taxation charge on ordinary activities 11,163 8,617
Tax credit/(charge) on disposal of businesses (1,070) 170
Total taxation charge for the year, including impact of disposal of businesses 10,093 8,787
Current tax on ordinary activities consists of £8,568,000 (2005: £8,056,000) for continuing activities and a credit of £89,000 (2005: £959,000
charge) in respect of discontinued activities. Deferred tax on ordinary activities consists of £2,696,000 (2005: £489,000 credit) in respect 
of continuing activities and a credit of £12,000 (2005: £91,000 charge) in respect of discontinued activities. In addition, a tax credit of
£1,070,000 (2005: £170,000 charge) has been recognised in respect of disposal of businesses. The Restaurant Group plc 
Annual Report 2006 47
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
9 Earnings per share
2006 2005
a) Basic earnings per share:
Weighted average ordinary shares in issue during the year: 197,790,404 216,576,330
Total basic profit for the year (£’000): 14,366 23,345
Basic earnings per share for the year (pence) 7.26 10.78
Effect of non-trading items on earnings for the year (£’000) 8,387 (4,626)
Effect of consolidation of DPP Restaurants Limited for the year (£’000) – 953
Earnings excluding non-trading items (£’000) 22,753 19,672
Adjusted earnings per share (pence) 11.50 9.08
b) Continuing and discontinued activities
Profit for the year from continuing activities (£’000) 10,611 15,746
Basic earnings per share from continuing activities (pence) 5.36 7.27
Profit for the year from discontinued activities (£’000) 3,755 7,599
Basic earnings per share from discontinued activities (pence) 1.90 3.51
c) Diluted earnings per share:
Weighted average ordinary shares in issue during the year: 197,790,404 216,576,330
Dilutive shares to be issued in respect of options granted under the share option scheme: 953,597 1,668,454
198,744,001 218,244,784
Diluted earnings per share (pence) 7.23 10.70
Diluted adjusted earnings per share (pence) 11.45 9.01
Diluted earnings per share from continuing activities (pence) 5.34 7.22
Diluted earnings per share from discontinued activities (pence) 1.89 3.48
The additional earnings per share information (where non-trading items for 2005 and 2006, and the performance of DPP Restaurants
Limited for 2005 when it was not managed by The Restaurant Group plc, have been added back) has been provided as the Directors
believe they provide a useful indication as to the underlying performance of the Group. 
Diluted earnings per share information is based on adjusting the weighted average number of shares in issue in respect of notional share
awards made to employees in respect of share option schemes. No adjustment is made to the reported earnings for 2006 and 2005.
10 Dividend
2006 2005
£’000 £’000
Amounts recognised as distributions to equity holders during the year:
Final dividend for the year ended 1 January 2006 of 3.84p (2004: 3.375p) per share 7,442 7,306
Interim dividend for the year ended 31 December 2006 of 1.05p (2005: 0.91p) per share 2,048 1,971
9,490 9,277
Special dividend of 16p per share paid on 9 March 2006 34,793 –
44,283 9,277
Proposed final dividend for the year ended 31 December 2006 of 4.95p (2005: 3.84p) per share 9,656 7,442
The proposed final dividend is subject to approval by shareholders at the Annual General Meeting to be held on 16 May 2007 and is 
not recognised as a liability in these financial statements. The proposed final dividend payable reflects the number of shares in issue 
on 31 December 2006. In addition, a special dividend of 16p per share (totalling £34.8m) was paid to shareholders on 9 March 2006. 
This is in respect of the return of value to shareholders following the disposal of Caffe Uno in December 2005.
11 Intangible assets
Goodwill
£’000
Cost
At 2 January 2006 and 31 December 2006 11,275
The goodwill in respect of the acquisition of Blubeckers is considered to have an indefinite life. As such, it is not amortised but is subject 
to an annual impairment review. This impairment review is based on a value in use calculation, whereby the discounted cash flow projections
of the business are reviewed against the carrying value of the goodwill. Cash flow projections are based on budgeted information and as
approved by the Board and with reference to the Group’s three-year business plan, with discount rates of 8% applied. A growth rate
beyond the cycle of 2.5% has been applied. The Restaurant Group plc 
Annual Report 2006 48
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
12 Property, plant & equipment
Fixtures,
Land and equipment 
buildings & vehicles Total
£’000 £’000 £’000
Cost
At 1 January 2005 176,956 85,366 262,322
Exchange movement (110) (107) (217)
Acquisitions 18,270 3,850 22,120
Additions 28,113 12,944 41,057
Disposals (52,277) (21,557) (73,834)
At 1 January 2006 170,952 80,496 251,448
Depreciation
At 1 January 2005 60,439 47,205 107,644
Exchange movement (64) (5) (69)
Acquisitions 474 1,798 2,272
Provided during the year 10,396 8,210 18,606
Impairment 2,890 470 3,360
Disposals (18,463) (13,239) (31,702)
At 1 January 2006 55,672 44,439 100,111
Cost
At 2 January 2006 170,952 80,496 251,448
Exchange movement 112
Acquisitions –––
Additions 27,344 13,431 40,775
Disposals (3,439) (8,142) (11,581)
At 31 December 2006 194,858 85,786 280,644
Depreciation
At 2 January 2006 55,672 44,439 100,111
Exchange movement 1– 1
Acquisitions –––
Provided during the year 12,207 4,251 16,458
Impairment 359 1,225 1,584
Disposals (3,439) (8,106) (11,545)
At 31 December 2006 64,800 41,809 106,609
Net book value as at 1 January 2006 115,280 36,057 151,337
Net book value as at 31 December 2006 130,058 43,977 174,035
The impairment made in 2005 is in respect of Caffe Uno sites which were not sold to Craftbutton Limited on 12 December 2005, and the
write down of certain finance leases in respect of DPP units. The impairment in 2006 is the write down of the carrying value of the Deep
Pan Pizza units on integration.
2006 2005
£’000 £’000
Net book value of land and buildings:
Freehold 29,986 27,242
Long leasehold 1,739 1,807
Short leasehold 98,333 86,231
130,058 115,280
Assets held under finance leases
Cost
At start of year 1,961 3,438
Disposals – (1,477)
At end of year 1,961 1,961
Depreciation
At start of year 982 661
Provided during the year 41 61
Impairment – 520
Disposals – (260)
At end of year 1,023 982
Net book value at end of year 938 979
Notes to the accounts continued The Restaurant Group plc 
Annual Report 2006 49
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
13 Investment in Living Ventures Limited 
The 40% investment in Living Ventures Limited is accounted for using the equity method. Living Ventures Limited has an accounting 
year end date of 31 March. The Group’s share of the total recognised profit or loss in Living Ventures Limited for the twelve month period
to 31 December 2006 was a loss of £917,000 (nine months of 2005 following acquisition: £200,000 loss). Summarised financial
information on Living Ventures Limited for the year is as follows:
2006 2005
£’000 £’000
Non-current assets 34,857 36,216
Current assets 3,606 6,850
Non-current liabilities (29,478) (29,344)
Current liabilities (9,458) (11,951)
Equity (473) 1,771
Revenue 47,567 35,647
Loss before disposal of brand (2,292) (1,501)
Net loss (2,292) (500)
At 31 December 2006 Living Ventures was contractually committed to £25,000 (2005: £30,000) of capital expenditure. The trade and
other receivable disclosed as a non-current asset in the consolidated balance sheet is in respect of a loan note due from Living Ventures
Limited in 2008. Interest is receivable from Living Ventures Limited at a rate of LIBOR. No interest receivable from Living Ventures Limited
has been recognised in the income statement of The Restaurant Group plc in 2006. Following a detailed review of the carrying value 
of the investment, and in light of current trading performance, the Board has concluded that it is appropriate to make a provision 
of £9.5m against the loan note.
14 Stock 
Stock comprises raw materials and consumables and has been valued at the lower of cost and estimated net realisable value. 
The replacement cost at 31 December 2006 is considered by the Directors not to be materially different from the balance sheet value. 
The Group recognised £75,362,000 of purchases as an expense in 2006 (2005: £73,118,000).
15 Trade and other receivables:
2006 2005
£’000 £’000
Amounts falling due within one year:
Trade debtors 2,583 2,642
Other debtors 2,587 2,856
5,170 5,498
16 Trade and other payables
2006 2005
£’000 £’000
Amounts falling due within one year:
Trade creditors 30,110 24,399
Other tax and social security 9,511 9,005
Other creditors 8,964 8,648
Accruals 26,279 29,424
74,864 71,476
17 Provisions
2006 2005
£’000 £’000
Provision for onerous lease contracts
Balance at start of year 763 625
Charged to the income statement during the year 3,009 431
Utilised during the year (306) (293)
Balance at end of year 3,466 763
The provision for onerous contracts is in respect of lease agreements and covers the onerous element of expenditure over the life of those
contracts which are considered onerous, expiring in 2 to 34 years. A discount rate of 7.5% has been approved in calculating the provision. The Restaurant Group plc 
Annual Report 2006 50
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
18 Deferred taxation 
2006 2005
£’000 £’000
Balance at start of year 13,971 15,725
Capital allowances in advance of depreciation charged to the income statement 2,845 599
Deferred tax recognised on losses from DPP Restaurants Limited – (814)
Other timing differences (161) (187)
Rolled over gains recognised during the year – 113
Held over gains released to the income statement – (413)
Deferred tax adjustment arising on disposal of business assets of Caffe Uno 12 (1,518)
Deferred tax taken directly to the income statement 2,696 (2,220)
Share options deferred tax credit, taken directly to equity (1,529) (411)
Deferred tax adjustment on sale of Est Est Est Restaurants Limited – (1,719)
Deferred tax arising on acquisition of Blubeckers Limited – 2,596
(1,529) 466
Transfer to corporation tax 1,109 –
Balance at end of year 16,247 13,971
2006 2005
£’000 £’000
Deferred tax consists of:
Capital allowances in advance of depreciation 18,183 14,229
Capital gains held over 460 460
Capital gains rolled over 633 633
Other timing differences (3,029) (1,351)
16,247 13,971
19 Share capital
Number £’000
Authorised
At 1 January 2005 and 2006 (ordinary shares of 25p each) 320,000,000 80,000
Share consolidation on 27 February 2006 (35,555,556) –
At 31 December 2006 (ordinary shares of 28
1
/ 8p each) 284,444,444 80,000
Allotted, called up and fully paid:
At 1 January 2005 216,346,706 54,087
Exercise of share options 1,115,863 279
At 1 January 2006 (25p ordinary shares) 217,462,569 54,366
Share consolidation on 27 February 2006 (24,162,505) –
Revised number of shares (28
1
/ 8p ordinary shares) 193,300,064 54,366
Exercise of share options 1,767,199 497
At 31 December 2006 195,067,263 54,863
On 27 February 2006 The Restaurant Group plc undertook a share consolidation, whereby nine existing shares were exchanged for 
eight new shares. Following the share consolidation the nominal value of an ordinary share of The Restaurant Group plc is 28
1
/8p. 
The authorised share capital is 284,444,444 shares and the allotted, called up and fully paid up number of shares was 193,300,064
immediately after the share consolidation.
During the year, 1,767,199 ordinary shares of 28
1
/8p were allotted and fully paid (2005: 1,115,863 ordinary shares of 25p). The nominal
value received was £497,000 (2005: £279,000) and total consideration received was £1,096,000 (2005: £604,000).
Notes to the accounts continued The Restaurant Group plc 
Annual Report 2006 51
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
20 Share-based payment schemes
The Group has taken advantage of the exemption under IFRS 2 “Share-based payments” not to account for share options granted before
7 November 2002. The charge recorded in the financial statements of the Group is:
2006 2005
£’000 £’000
Share-based payment schemes 1,059 508
The Group operates a number of share option schemes, details of which are provided in the Directors’ remuneration report on pages 24 to 29.
Options granted under the share option schemes and not exercised at 31 December 2006 were:
At 31
December At 1
2006 January Exercise
Period during which options are exercisable: Scheme Number 2006 price
2002-2009 1998 50,244 110,586 75.0p
2003-2010 1998 6,030 58,853 48.6p
2004-2011 Note (1) 400,000 800,000 45.0p
2006-2013 2003 967,742 2,231,825 67.4p
2007-2014 2003 1,667,500 1,760,000 97.7p
2007-2008 2003 SAYE 401,602 444,772 79.0p
2008-2015 2003 1,479,000 1,544,000 134.4p
2009 2003 SAYE 266,029 – 160.0p
2009 2005 LTIP 1,466,051 – –
Note (1): The Scheme is in respect of Alan M. Jackson’s share options granted on 5 June 2001. Further details are provided in the
Directors’ remuneration report on page 29. During the year Mr Alan M. Jackson exercised 400,000 share options at an exercise price 
of 45p, and as at 31 December 2006 there are 400,000 share options outstanding. No charge to the income statement is recognised 
in respect of Mr Alan M. Jackson’s share options as they were granted prior to 7 November 2002.
Note (2): To ensure comparability of the value of options to option holders, the exercise price and number of shares awarded were subject
to amendment following the Placing on 14 January 2004.
Executive Share Option Plans (ESOPs)
The Group has in place two ESOPs, the 1998 scheme and 2003 scheme. Under these schemes the Remuneration Committee may grant
options over shares in The Restaurant Group plc to employees of the Group. The contractual life of an option is ten years. Awards under
the ESOPs are generally reserved for senior management level and above and 33 employees were eligible to participate at 31 December
2006. Options granted under the ESOPs become exercisable on the third anniversary of the date of grant, subject to growth in earnings
per share exceeding RPI growth by more than 4% (under the 1998 scheme) or 2
1
/2% (under the 2003 scheme). Exercise of options is
subject to continued employment within the Group.
Options were valued using a Stochastic option pricing model. No performance conditions were included in the fair value calculations. 
As permitted by IFRS 2, only options granted since 7 November 2002 which were unvested at 1 January 2005 have been valued. 
A reconciliation of the movement in outstanding share options under the ESOPs is provided below:
At 31 December 2006 At 1 January 2006
Weighted Weighted
average average
exercise exercise 
Number price (p) Number price (p)
Outstanding at the start of the year 5,705,264 94.8p 5,304,658 77.5p
Granted –– 1,629,000 134.4p
Exercised (1,367,199) 67.0p (715,863) 59.1p
Lapsed (167,549) 110.1p (512,531) 91.1p
Outstanding at the end of the year 4,170,516 103.3p 5,705,264 94.8p
Exercisable at the end of the year 1,029,543 67.7p 169,439 65.8p
During 2006, the weighted average market price at date of exercise was 227p per share (2005: 137p).
During 2003 the Group adopted the 2003 Executive Share Option Mirror Scheme. The 2003 Mirror Scheme was introduced on similar
terms to the 1998 Scheme save for certain changes which are incorporated into the 2003 Mirror Scheme. The 2003 Mirror Scheme was
designed so that an option granted pursuant to the 2003 Mirror Scheme (“Mirror Options”) could be issued to both existing holders of
options under the 1998 Scheme (“1998 Options”) and to new participants. However holders of share options granted under the 1998
Scheme can only exercise either their mirror options or their 1998 options, but not both. Mirror Options can only be exercised by 1998
Option holders if their 1998 Options have not already been exercised. If their 1998 Options are exercised or lapse then the Mirror Options
will lapse. The Mirror Options held by 1998 Option holders have a life for the residue of the life of the existing 1998 Options. The Restaurant Group plc 
Annual Report 2006 52
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Notes to the accounts continued
20 Share-based payment schemes continued
Long-Term Incentive Plan
On 9 November 2005 an Extraordinary General Meeting of The Restaurant Group plc approved the adoption of a new Long-Term
Incentive Plan (“LTIP”) for the Group. Details of the LTIP are provided in the Directors’ remuneration report on pages 24 to 29. Options
were granted to Directors and selected employees on 7 December 2005 1,131,188 Conditional Award share options and 643,515
Matching Award share options were granted. In respect of the Matching Award share options, the respective Director or employee is
required to acquire a number of shares by 7 May 2006, known as “Deposited Shares”, and retain these shares until the Matching Award
share options vest, for those Matching Award share options to be valid. During the period to 31 December 2006, a total of 308,652
options have lapsed and a total of 1,466,051 options were outstanding at 31 December 2006 and are not exercisable until 2009. The
options from the LTIP scheme will be satisfied through share purchases via a trust. The fair value of a share at the time of grant was 
£1.47. Vesting of share options under the LTIP is dependent on continuing employment. None of the options under the LTIP scheme 
were exercisable at the year end.
Following the year end, a further award was made to Directors and selected employees. On 8 March 2007, 567,263 Conditional Award
share options and 247,908 Matching Award share options were granted at a value of £3.255 per option. The conditions pertaining to the
2007 award mirror those of the award made on 7 November 2005.
Save As You Earn scheme
Under the Save As You Earn (“SAYE”) scheme the Board may grant options over shares in The Restaurant Group plc to UK-based
employees of the Group. Options are granted with a fixed exercise price equal to 80% of the average market price of the shares for the
five days prior to invitation. Employees pay a fixed amount from salary into a savings account each month, for a three-year savings period.
At the end of the savings period, employees have six months in which to exercise their options using the funds saved. If employees decide
not to exercise their options, they may withdraw their funds saved and the options expire. Exercise of options is subject to continued
employment within the Group. Options were valued using the Stochastic share pricing model. As permitted by IFRS 2, only options
granted since 7 November 2002, which were unvested at 1 January 2005, have been valued. None of the share options under the SAYE
scheme were exercisable at 31 December 2006 and 1 January 2006.
At 31 December 2006 At 1 January 2006
2006 grant 2004 grant 2006 grant 2004 grant
Number Number Number Number
Outstanding at start of the year – 444,472 – 505,212
Granted 292,317–––
Exercised ––––
Lapsed (26,288) (42,870) – (60,740)
Outstanding at end of the year 266,029 401,602 – 444,472
Assumptions used in valuation of share-based payments
2005 LTIP
Conditional 2005 LTIP
Award Matching
Scheme SAYE TSR element EPS element Award 2003 ESOP
Grant date 27/4/06 8/11/05 8/11/05 8/11/05 4/4/05
Average share price for five preceding days to grant date 200.0p 147.0p 147.0p 147.0p 134.4p
Exercise price 160.0p––– 134.4p
Number of options originally granted 292,317 340,113 791,075 643,515 1,629,000
Minimum vesting period (years) 3 years 3 years 3 years 3 years 3 years
Expected volatility 25% 23% 23% 23% 28%
Contractual life 3.5 years 3.5 years 3.5 years 3.5 years 10 years
Risk free rate 4.67% 4.35% 4.35% 4.35% 4.70%
Expected dividend yield 2.18% 0.00% 0.00% 0.00% 3.20%
Expected forfeitures 9% 5% 5% 5% 9%
Fair value per option 71.7p 95.1p 147.0p 147.0p 36.0p
The expected life of the options is based on the expected exercise behaviour linked to share price and period since grant assuming the
options are exercisable during a period of 3 to 10 years. The Restaurant Group plc 
Annual Report 2006 53
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
21 Reserves
Foreign
Share Share currency Other Retained
capital premium reserve reserves earnings
£’000 £’000 £’000 £’000 £’000
At 1 January 2005 54,087 19,422 245 256 1,873
Adjustment to opening reserves for inclusion of swaps under IAS 39 –––– 127
Revised reserves at 1 January 2005 54,087 19,422 245 256 2,000
Issue of shares 279 325–––
Profit for the year –––– 23,345
Dividends –––– (9,277)
Share-based payments – credit to equity – – – 508 –
Deferred tax credit on share-based payments taken directly to equity –––– 411
Foreign exchange translation differences – – (165) – –
At 1 and 2 January 2006 54,366 19,747 80 764 16,479
Issue of shares 497 599–––
Profit for the year –––– 14,366
Dividend – ordinary –––– (9,490)
Dividend – special –––– (34,793)
Share-based payments – credit to equity – – – 1,059 –
Deferred tax credit on share-based payments taken directly to equity –––– 1,529
Foreign exchange translation differences – – 1 – –
At 31 December 2006 54,863 20,346 81 1,823 (11,909)
The ‘other reserve’ reflects the credit to equity made in respect of the charge for share options made through the income statement.
Since 1 January 1989 the cumulative amount of goodwill written off against realised reserves is £50,400,000 (2005: £50,400,000).
Records for periods prior to this date are not readily available.
22 Reconciliation of profit before tax to net cash flow from operating activities
2006 2005
£’000 £’000
Profit before tax 21,579 26,458
Net finance charges 2,609 2,003
Loss and provision for loss on disposal of fixed assets – 2,594
Release of accrual for property exit costs – (1,700)
Loss on integration of DPP (net of operating cash flow) 4,101 –
Provision against carrying value of loan note from associate 9,500 –
Share of loss made by associate 917 600
Non cash charge reversed in reserves 1,059 508
Depreciation 16,458 18,606
Increase in stocks (229) (439)
Increase in debtors (1,295) (2,451)
Increase in creditors 8,675 9,305
Cash flows from operating activities 63,374 55,484
Discontinued operations had a negative EBITDA of £296,000 (2005: £6,977,000 contribution) and capital additions of £nil (2005: £864,000).
No separate cash flow has been presented in respect of discontinued activities as it is not possible to separately identify working capital 
or financing payments and receipts in respect of these operations, as these are centrally managed. EBITDA and capital additions
approximately represent operating and investing cash flows.
Major non-cash transactions
As disclosed in notes 5 and 13, during the year the Group performed an impairment review on the carrying value of Living Ventures. In light
of the recent trading performance, the Board has concluded that it is appropriate to make a provision of £9.5m against the carrying value
of the loan note payable in 2008. The impairment represents a significant non-cash transaction. The Restaurant Group plc 
Annual Report 2006 54
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Notes to the accounts continued
23 Reconciliation of changes in cash to the movement in net debt
2006 2005
£’000 £’000
At the beginning of the year (12,419) (11,652)
Movements in the year:
Loans taken out (36,000) (4,000)
Cash inflow 937 3,233
At the end of the year (47,482) (12,419)
At Cash flow At Cash flow At
1 January movements 2 January movements 31 December
2005 in the year 2006 in the year 2006
£’000 £’000 £’000 £’000 £’000
Represented by:
Cash at bank and in hand 482 (56) 426 257 683
Overdrafts (5,134) 3,289 (1,845) 680 (1,165)
3,233 937
Bank loans due within one year –––– –
Bank loans due after one year (7,000) (4,000) (11,000) (36,000) (47,000)
(4,000) (36,000)
(11,652) (767) (12,419) (35,063) (47,482)
24 Financial instruments and derivatives
The report of the Directors on pages 18 to 23 provides an explanation of the Group’s treasury objectives and policies with regard to
financial instruments and the management of risk.
(a) Interest rate risk and liquidity profile
Financial assets
The financial assets of the Group comprised:
2006 2005
£’000 £’000
Cash and cash equivalents – Sterling 510 368
Cash and cash equivalents – Euro 173 58
683 426
Trade and other receivables 5,170 5,498
Current financial assets 5,853 5,924
Non-current financial assets 875 10,375
Total financial assets 6,728 16,299
Cash and cash equivalents include balances held on which interest is received at floating rates in the overnight money market. The loan
note is secured on the assets of Est Est Est Restaurants Limited but is subject to a prior ranking behind Living Ventures Limited’s bank.
Other details regarding interest and maturity are provided in note 13. The Restaurant Group plc 
Annual Report 2006 55
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
24 Financial instruments and derivatives (continued)
Financial liabilities
The financial liabilities of the Group comprised:
2006 2005
£’000 £’000
Short-term borrowings – at floating interest rates* 1,165 1,845
Trade and other payables 74,864 71,476
Short-term financial liabilities 76,029 73,321
Long-term borrowings – at floating interest rates* 47,000 11,000
Finance lease debt 2,737 2,696
Provisions 3,466 763
Long-term financial liabilities 53,203 14,459
Financial liabilities 129,232 87,780
* Total financial liabilities attracting interest were £48,165,000 (2005: £12,845,000). Interest is payable at floating interest rates which fluctuate
and are dependent on LIBOR or base rate. The average weighted year end interest rate for these borrowings was 6.30% (2005: 5.50%).
Effective from 16 January 2003, the Group entered into an interest rate swap for a notional amount of £20,000,000 to be fixed at 4.55%
per annum for a period of three years, terminating on 15 January 2006. The Group also entered into an interest rate swap for a further
notional amount of £20,000,000 to be fixed at 4.395% per annum for a period of three years, effective from 16 January 2003 which
terminated on 15 January 2006. This second interest rate swap provided the counterparty with the right, but not the obligation, to enter 
into a further transaction to renew the interest rate swap on £20,000,000 at 4.395% for a further two years, terminating on 15 January 2008.
This option was not taken up by the counterparty.
Effective from 16 January 2006, the Group entered into a new interest rate swap for an initial notional amount of £20,000,000, rising to
£50,000,000 from 18 April 2006 until 16 January 2008, when it reduces to £30,000,000 until 16 January 2009, when it terminates. The
fixed rate for the duration of the three years is 4.695%.
The Group has £33,000,000 (2005: £69,000,000) of committed borrowing facilities in excess of gross borrowings at 31 December 2006
which are due to expire in 2008, when the bank loan of £47,000,000 (2005: £11,000,000) is also due to expire.
(b) Foreign currency exposure profile as at 31 December 2006
The Group has invested in and operates three restaurants in Spain, where the currency is the Euro. Consequently the Group has 
a potential currency exposure on the translation of results from its Spanish operations, and translating the assets and liabilities from Euros
to the Group’s reporting currency, Sterling. This exposure is reviewed on a regular basis, and is not considered to be material to the
performance of the Group, or to the balance sheet.
(c) Fair value of financial assets and liabilities
Book value Fair value Book value Fair value
Primary financial instruments held or used 2006 2006 2005 2005
to finance the Group’s operations: £’000 £’000 £’000 £’000
Cash and deposits 683 683 426 426
Overdraft/loan maturing within one year (1,165) (1,165) (1,845) (1,845)
Borrowings maturing after one year (47,000) (47,000) (11,000) (11,000)
(47,482) (47,482) (12,419) (12,419)
The Group does not hold any financial instruments for trading purposes. The fair value of short term borrowings and cash in hand together
with short-term non-interest bearing trade and other receivables and trade and other payables approximate to book values due to the
short-term maturity of these instruments. As highlighted in note 13, book value approximates to fair value in respect of the non-current
receivable of £875,000. The Group has derivative instruments relating to interest rate swaps. In accordance with IAS 39 this has been
valued at 31 December 2006. The fair value of this instrument was £652,000 (2005: £7,000) and this is accounted for in the consolidated
balance sheet. Movements on the fair value are recorded through the consolidated income statement. In accordance with the transitional
provisions available under IFRS 1, the Group did not adopt IAS 39 until periods commencing after 1 January 2005. Consequently, opening
reserves were adjusted by the fair value of the interest rate swap on 1 January 2005 and net assets of the Group increased by £127,000,
with an equivalent increase in equity.
(d) Credit risk
The Group has credit risks on its trade debtors and the long-term receivable from Living Ventures Limited. In light of the current trading
performance of Living Ventures Limited, and following a detailed review of the carrying value of the business, including the loan note
receivable, the Board has concluded it is appropriate to make a £9.5m provision against the long-term receivable. Due to the nature of the
Group’s business there are not significant exposures on underlying revenue trading. Counterparties for cash and derivative balances are with
financial institutions with strong credit ratings. The Restaurant Group plc 
Annual Report 2006 56
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Notes to the accounts continued
25 Lease commitments
Future lease payments in respect of finance leases are due as follows:
Minimum Minimum
lease Present lease Present
payments Interest value payments Interest value
2006 2006 2006 2005 2005 2005
£’000 £’000 £’000 £’000 £’000 £’000
Within one year 271 271 – 243 243 –
Within two to five years 1,082 1,082 – 1,214 1,214 –
After five years 6,427 3,690 2,737 6,748 4,052 2,696
7,780 5,043 2,737 8,205 5,509 2,696
The total future minimum rentals payable under operating leases in respect of the total lives of the leases are:
Payable Receivable Payable Receivable
2006 2006 2005 2005
£’000 £’000 £’000 £’000
Within one year 1,942 – 364 108
Within two to five years 22,859 1,316 25,730 1,559
After five years 405,723 49,724 371,215 34,753
430,524 51,040 397,309 36,420
The Group has entered into a number of property leases on standard commercial terms. There are no restrictions imposed by the Group’s
operating leases, either in the current or prior year.
Included within the minimum rentals are amounts payable as concession fees. These arrangements are principally in the Group’s
Concessions division, which operates in UK airports. Within these concession arrangements there is usually a concession fee for each 
unit which is based on the revenue derived from that unit.
26 Capital commitments
2006 2005
£’000 £’000
Authorised and contracted for: 15,948 14,206
27 Related party transactions
Living Ventures Limited is a related party to The Restaurant Group plc through the Group’s 40% holding. During the year interest of
£634,000 was accrued on the loan note between Living Ventures Limited and The Restaurant Group plc at the rate of LIBOR. The Group
recognised £nil (2005: £522,000) in respect of interest income due from Living Ventures Limited. Under the terms of the loan note none 
of this interest was payable as at 31 December 2006, consequently in addition to the loan note of £10,375,000 outstanding at that date,
£1,156,000 of interest receivable was also due from Living Ventures Limited. Following a detailed review of the carrying value of Living
Ventures, and in light of current trading performance, the Board has concluded that it is appropriate to make a provision of £9.5m against
the loan note repayable in 2008.
For the year to 31 December 2006, Alan M. Jackson received a fee of £35,000 (2005: £35,000) from Living Ventures Limited in 
respect of his duties as non-executive Chairman of that Company. During 2005, Mr Jackson also received a fee of £222,000 from
Bowmark Limited in respect of a previously agreed incentive arrangement which arose on Bowmark Limited’s disposal of its stake 
in Living Ventures Limited, to TRG.
Alan M. Jackson is a non-executive Director of Charles Wells Limited, an independent brewing, pub and distribution company. During
2005, The Restaurant Group plc entered into a lease for a site owned by Charles Wells Limited and subsequently this site was converted
into a Frankie & Benny’s restaurant. No premium was paid by the Group to Charles Wells Limited. The Group has entered into a lease 
with Charles Wells Limited, on an arms length basis, with an annual rent of £73,850 per annum. In addition, the Group purchased
products with a value totalling £576,000 (2005: £414,000) from Wells & Young’s Limited, a subsidiary of Charles Wells Limited, during 
the year, on an arms length basis. No balance was directly outstanding at the year end. Alan M. Jackson received no remuneration 
or compensation in respect of these transactions. 
Remuneration in respect of key management personnel, defined as the Directors for this purpose, is disclosed in note 6. Further
information concerning the Directors’ remuneration is provided in the Directors’ remuneration report on pages 24 to 29, of which 
pages 27 to 29 are audited. The Restaurant Group plc 
Annual Report 2006 57
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Company balance sheet 
– under UK GAAP
At At 
31 December 1 January 
2006 2006
Note £’000 £’000
Fixed assets
Investment in associated undertaking i 7,810 10,186
Investments in subsidiary undertakings ii 110,242 109,183
118,052 119,369
Current assets
Debtors – inter company balances 36,529 11,529
36,529 11,529
Creditors
Amounts falling due within one year – inter company balances iii (49,810) (46,623)
Net current liabilities (13,281) (35,094)
Total assets less current liabilities 104,771 84,275
Net assets 104,771 84,275
Capital and reserves
Called up share capital vi 54,863 54,366
Share premium account vi 20,346 19,747
Other reserves vi 1,823 764
Profit and loss account vi 27,739 9,398
Shareholders’ funds – equity 104,771 84,275
The financial statements on pages 57 and 58 were approved by the Board of Directors and authorised for issue on 4 April 2007 and were
signed on its behalf by:
Alan M. Jackson Stephen M.A. Critoph ACA
Non-executive Chairman Group Finance Director
Accounting policies and basis of preparation
The accounts for the Company have been prepared under UK GAAP , whilst the Group accounts have been prepared under International
Financial Reporting Standards. The Company accounts have been prepared under the historical cost convention in accordance with
applicable accounting standards under UK GAAP and on a going-concern basis.
Investments are valued at cost less any impairment.
In accordance with FRS 21, “Events after the Balance Sheet Date”, dividends declared after the balance sheet date are not recognised 
as a liability at that balance sheet date, and are recognised in the financial statements when they have received approval by shareholders.
The share options have been accounted for as an expense in the company in which the employees are employed, using a valuation 
based on a Stochastic simulation model.
In accordance with an available election in FRS 20, share-based awards granted before 7 November 2002 have not been subject 
to a charge. An increase in the investment held by The Restaurant Group plc in the subsidiary in which the employees are employed, 
with a corresponding increase in equity, is recognised in the accounts of The Restaurant Group plc. Information in respect of the
Company’s share option schemes is provided in note 20 to the consolidated financial statements.
The value is accounted for as a capital contribution in relevant Group subsidiaries that employ the staff members to whom awards of share
options have been made.
i) Investment in associate £’000
At 2 January 2006 10,186
Impairment of investment (2,376)
At 31 December 2006 7,810 The Restaurant Group plc 
Annual Report 2006 58
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Company balance sheet 
– under UK GAAP continued
ii) Investment in subsidiaries
Shares Loans Total
£’000 £’000 £’000
Cost
At 2 January 2006 83,972 26,633 110,605
Reclassification of investment (17,070) 17,070 –
Additions – share option scheme – 1,059 1,059
At 31 December 2006 66,902 44,762 111,664
Amounts written off
At 2 January and 31 December 2006 888 534 1,422
Net book value at 31 December 2006 66,014 44,228 110,242
Net book value at 2 January 2006 66,014 26,099 109,183
The Company’s operating subsidiaries are:
Proportion of voting 
rights and shares held
Holding at 31 December 2006
City Centre Restaurants (UK) Limited Ordinary shares 100%
Chiquito Limited Ordinary shares 100%
Blubeckers Limited Ordinary shares 100%
Frankie & Benny’s S.L.* Ordinary shares 100%
DPP Restaurants Limited *, ** Ordinary shares 100%
* Held by subsidiary undertakings
** On 12 January 2006 the Group acquired the remaining 80.1% of the share capital of DPP Restaurants Limited for a nominal sum.
Other than Frankie & Benny’s S.L., the Company’s principal operating subsidiaries are registered in England and Wales, and operate
restaurants in the United Kingdom. Frankie and Benny’s S.L. is registered and operates restaurants in Spain.
All other subsidiary undertakings are wholly owned by the Company or one of its subsidiaries, and are dormant.
iii) Creditors – amounts falling due within one year
In accordance with FRS 21, the proposed final dividend payable in respect of 2006 is not recognised as a liability in these accounts 
as it has not yet been approved by shareholders. The creditors falling due within one year are in respect of intercompany balances.
iv) Profit attributable to members of the holding company
As permitted by section 230(3) of the Companies Act 1985, a separate profit and loss account has not been presented for the holding
company. During the year the Company made a profit of £62,624,000 (2005: loss of £7,000). Included in the profit for 2006 are dividends
received from subsidiary undertakings of £65,000,000. Remuneration of the auditors is borne by subsidiary undertakings.
v) Employee costs and numbers
All costs of employees and Directors are borne by subsidiary undertakings. At 31 December 2006 the Company employed five persons 
(1 January 2006: six persons).
vi) Share capital and reserves
Share Share Other Profit and 
capital premium reserves loss account Total
£’000 £’000 £’000 £’000 £’000
At 2 January 2006 54,366 19,747 764 9,398 84,275
Issue of shares in respect of share options 497 599 – – 1,096
Profit for the year – – – 62,624 62,624
Employee share option schemes – – 1,059 – 1,059
Dividends paid – – – (44,283) (44,283)
54,863 20,346 1,823 27,739 104,771
Details of share issues during the year are given in notes 19 and 20 of the consolidated financial accounts and details of the dividends paid
and proposed during the year are given in note 10 of the consolidated accounts. The Restaurant Group plc 
Annual Report 2006 59
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Group financial record
2006 2005 2004 2004 2003 2002
IFRS IFRS IFRS UK GAAP UK GAAP UK GAAP
£’000 £’000 £’000 £’000 £’000 £’000
Revenue 314,748 302,328 255,446 255,446 227,438 216,386
Trading business (excluding DPP in 2005) 39,187 31,962 26,070 25,904 21,793 20,099
Underlying interest (3,254) (1,823) (1,667) (1,179) (2,539) (3,284)
Share of associate (917) (600) ––––
Adjusted profit before taxation 35,016 29,539 24,403 24,725 19,254 16,815
Loss before taxation made by DPP – (1,733) ––––
Non-trading items (13,437) (1,348) (3,390) (2,597) (2,613) (53)
Profit on ordinary activities before taxation 21,579 26,458 21,013 22,128 16,641 16,762
Taxation (11,163) (8,617) (6,942) (7,039) (5,606) (3,771)
Profit on ordinary activities after taxation 10,416 17,841 14,071 15,089 11,035 12,991
Profit on sale of business net of tax 3,950 5,504––––
Profit for the year 14,366 23,345 14,071 15,089 11,035 12,991
Basic earnings per share 7.26p 10.78p 6.59p 7.06p 5.68p 6.69p
Adjusted earnings per share 11.50p 9.08p 7.84p 7.95p 6.66p 6.71p
Proposed total dividend per share 6.00p 4.75p 4.20p 4.20p 3.65p 3.50p
Dividend cover (excluding non-trading items) 1.92 1.91 1.87 1.89 1.82 1.91
Employment of finance
Property, plant & equipment 174,035 151,337 154,678 149,683 146,220 143,799
Other non-current assets 19,960 30,377––––
Net current liabilities (59,341) (61,848) (51,014) (55,111) (43,617) (79,753)
Long-term liabilities (53,203) (14,459) (12,056) (7,625) (35,687) (1,208)
81,451 105,407 91,608 86,947 66,916 62,838
Financed by:
Equity shareholders’ funds 65,204 91,436 75,883 70,855 50,144 46,560
Deferred tax 16,247 13,971 15,725 16,092 16,772 16,278
81,451 105,407 91,608 86,947 66,916 62,838
Net debt (47,482) (12,419) (11,652) (11,294) (38,163) (44,600)
Gearing 72.8% 13.6% 15.4% 15.9% 76.1% 95.8%
Interest cover before non-trading items (times) 12.0 17.5 15.6 22.0 8.6 6.1
The amounts stated for 2003 and earlier periods are stated on the basis of UK GAAP as it is not practicable to restate these periods
for the transition to IFRS. The Restaurant Group plc 
Annual Report 2006 60
This information has been extracted from the statutory accounts of the group which were approved on 4 April 2007. 
This information in itself does not constitute statutory accounts within the meaning of section 240 Companies Act 1985.
Directors
Alan M. Jackson
Non-executive Chairman
Andrew Page
Chief Executive Officer
Stephen M.A. Critoph
Group Finance Director
Kevin J. Bacon
Executive Director, Leisure
Patricia A. Corzine
Executive Director, Concessions
John E. Jackson
Non-executive
Andrew Thomas
Non-executive
David H. Richardson
Non-executive
Company Secretary
Robert J. Morgan
Registered Office
151 St Vincent Street
Glasgow G2 5NJ
Head Office
5-7 Marshalsea Road 
London SE1 1EP
Telephone Number
0845 612 5001
Company Number
SC030343
Registrar
Lloyds TSB Registrars Scotland
PO Box 28448
Finance House
Orchard Brae
Edinburgh, EH4 1WQ
Auditors
BDO Stoy Hayward LLP
8 Baker Street
London, W1U 3LL
Financial Calendar
Annual General Meeting
16 May 2007
Final Dividend – 2006
Announcement 7 March 2007
Ex Dividend 6 June 2007
Record Date 8 June 2007
Payment Date 4 July 2007
Shareholder Information The Restaurant Group plc operates 284
branded restaurants predominantly in leisure
locations and airports. Its primary brands 
are Frankie & Benny’s, Chiquito, Garfunkel’s
and Blubeckers.
Contents
01 Highlights
02 At a glance
04 Chairman’s statement
06 Chief Executive Officer’s 
review of operations
12 Group Finance Director’s review
16 Directors
18 Report of the Directors
24 Directors’ remuneration report
30 Report of the independent auditors
32 Accounting policies for the 
consolidated accounts
35 Consolidated income statement
36 Consolidated statement 
of changes in equity
37 Consolidated balance sheet
38 Consolidated cash flow statement
39 Notes to the accounts
57 Company balance sheet – 
under UK GAAP
59 Group financial record
60 Shareholder information
Designed and produced by                       www.collegedesign.com >
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The Restaurant Group plc 
Annual Report 2006
The Restaurant Group plc 
5-7 Marshalsea Road
London SE1 1EP
Tel: 0845 612 5001
www.trgplc.com
The Restaurant Group plc Annual Report 2006