strong brands
nationwide
the restaurant group plc 
annual report 2006
the restaurant group plc 
57 marshalsea road
london se1 1ep
tel 0845 612 5001
wwwtrgplccom
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                       wwwcollegedesigncom 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
666
784
908
1150
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 likeforlike
sales were 5 for 2006
 further good progress in
margin growth with adjusted
operating profit margin
increasing 140 basis points 
to 125
 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 likeforlike 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 likeforlike sales
operating profits up 15
 operating profit margins 
up 140 basis points
 refurbishment programme
delivering strong sales growth
blubeckers 22 units
 strong likeforlike growth
 five units opened in 2006
including one conversion
 pipeline building with 510
new units to open in 2007
concessions 49 units
 very pleasing performance 
 solid likeforlike 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
 likeforlike sales for 
the first nine weeks 5

1 1 3

266

 1 85

263
adjusted ebitda
adjusted ebitda grew by 113 
in 2006 reflecting the strong cash
generative performance of the business
adjusted earnings per share
adjusted earnings per share increased
by 266 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 495p per share to be paid on 
4 july 2007 making the full year 
dividend 600p per share 
the restaurant group plc 
annual report 2006 01
 results are stated excluding nontrading 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
193
244
295
350
365
420
475
600
adjusted ebitda £m
80
2003 2004 2005 2006
70
60
50
40
30
20
10
368
433
500
556 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
americanitalian style cuisine
alongside favourites including
chargrilled 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 familyrun
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 1520 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 texmex 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 texmex
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 redhot 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
icecold beers and soft drinks
cantinainspired 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 wellknown 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 likeforlike 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 likeforlike 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 pretax profit increased by 19 to
£350m 2005 £295m with turnover from our principal trading
brands increasing by 24 to £3087m 2005 £2488m adjusted
earnings per share increased by 27 to 1150p 2005 908p 
as a result of this excellent performance the board is
recommending an increased final dividend of 495p per share
2005 384p an increase of 29 giving a total dividend for 
the year of 600p 2005 475p 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 exdividend on 6 june 2007 as
detailed in my interim statement we also paid a special dividend
of £348m 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 likeforlike 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 colocated units frankie  benny’s and chiquito has been
particularly pleasing and we believe that there is scope to continue
this pattern of dual rollout 
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 25 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 £95m 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 likeforlike sales 
for the first nine weeks 5 ahead this year our target will 
be to open 3035 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 likeforlike sales growth is a key
performance indicator and this growth
demonstrates the continuing appeal 
of our brands
likeforlike sales growth
 results are stated excluding nontrading 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 longterm 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 likeforlike 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 semirural 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 likeforlike 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 125 – 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 – likeforlike 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

25m
customers served 
in 2006
children’s meals served 
in frankie  benny’s
the restaurant group plc 
annual report 2006 07
 results are stated excluding nontrading 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 £2363m
 profit £507m
 operating margin 215
 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 likeforlike 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 1520 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 
likeforlike 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 
510 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 colocated with frankie  benny’s and we will
continue to pursue dual rollout 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 likeforlike 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 buildup 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 510 new restaurants blubeckers is well placed to benefit
from the trends towards increased eating out and its widespread
appeal across most socioeconomic 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 likeforlike 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 £725m
 profit £111m
 operating margin 153
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 likeforlike 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 noncore brands and associate
during the year losses from noncore activities increased from
£09m to £20m 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 
£09m 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 £95m 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 socioeconomic 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 demandside dynamics a key
concern for some time has been supplyside risk in this regard
we believe that we have positioned trg in market segments
which afford some protection from supplyside 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 higherquality longterm 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
likeforlike 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 likeforlike
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 ma 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 96 
to £3147m and turnover of the principal trading brands increased
by 241 to £3087m this strong level of turnover growth reflects
an impressive level of 5 likeforlike 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
113 to £556m and group adjusted operating profit increased
by 226 to £392m these levels of growth would have been
even stronger had it not been for a higher level of losses in 
noncore 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
£359m an increase of 192 on the prior year after accounting
for our share of the losses of living ventures which amounted to
£09m total reported group profit before tax and nontrading items
amounted to £350m an increase of 185 on the prior year 
nontrading items 
the group results include a net charge before taxation of £134m in
respect of nontrading items this is made up of the following items
2006 2005
£m £m
impairment of loan note due 
from living ventures 95–
dpp integration and rationalisation 46 –
interest rate swap impact 07 01
other items net – 12
134 13
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
£95m 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 oneoff 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
nontrading 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 revalued 
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

£556m
 results are stated excluding nontrading 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
£38m profit before taxation of £27m which is in addition to the
profit after taxation of £35m reported in 2005 profit before taxation
of £37m 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 £37m recognised last year this brings the cumulative profit on
disposal before taxation of the caffe uno business to £64m
capital expenditure
during 2006 the group invested a total of £408m 2005 £409m
in capital additions this consisted of the following 
 £286m 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 £37m spent on converting 13 former deep pan pizza sites
with the balance spent on 34 brand new locations
 £85m on refurbishment and maintenance expenditure 
 £37m 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 socioeconomic and demographic 
analysis and local competitor and market analysis all significant
projects are subject to approval by the group board and we
conduct postcompletion 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 £634m 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 £424m an increase of 19 compared 
to the prior year 2005 £357m 
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 £914m to
£652m this reduction is due to the special dividend of £348m
paid in march total noncurrent assets increased from £1817m 
to £1940m 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 120x 175x
fixed charge cover 23x 23x
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 23 times in line with 2005 
taxation
the total taxation charge excluding the impact of disposal of
businesses for the year is £112m compared with £86m 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 £112m 2005 £86m consists of a corporation tax
charge of £85m 2005 £90m and a deferred tax charge of
£27m 2005 £04m credit 
stephen ma critoph
group finance director
4 april 2007
new units opened in 2006

47
the restaurant group plc 
annual report 2006 15

£424m

3035
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 nonexecutive chairman
aged 63 he joined the restaurant group plc as executive
chairman in march 2001 and became nonexecutive 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 nonexecutive
chairman of luminar plc randalls vaultier limited and charles
wells limited and he is a nonexecutive 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 ma 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 häagendazs 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 nonexecutive
aged 60 he was appointed a nonexecutive 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 nonexecutive director 
of wilkinson hardware stores limited and a nonexecutive 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 nonexecutive
aged 64 he was appointed a nonexecutive director of the
company in may 2001 he was formerly executive chairman of
the greenalls group plc he is currently a nonexecutive director
of jjb sports plc together with a number of nonquoted
companies and a partner in moors andrew thomas and
company chartered accountants
8 david h richardson nonexecutive
aged 55 he was appointed as a nonexecutive director of 
the company in february 2007 he was finance director of
whitbread plc from 2001 to 2005 he is currently nonexecutive
chairman of sports direct international plc and a nonexecutive
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 cocacola hbc sa 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 £14366000 2005 £23345000
an interim dividend of 105p per share was paid on 19 october 2006 the directors propose a final dividend of 495p per share to be 
paid on 4 july 2007 bringing the ordinary dividend payable in respect of 2006 to 600p 2005 475p 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 ma 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 nonexecutive director of the company with effect from 1 february 2007
in respect of 2006 each of the nonexecutive directors excluding the chairman is considered by the board to be independent 
alan m jackson transitioned from executive chairman to nonexecutive chairman on 1 january 2006 and is not considered to 
be an independent nonexecutive 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 reelection at the annual general meeting john e jackson has been a nonexecutive director 
of the company for more than nine years and in accordance with corporate governance best practice also offers himself for reelection
the board considers john e jackson to remain independent and recommends his reelection as an independent nonexecutive 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 nonexecutive 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 nonexecutive 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 250173 183950 156449
stephen ma critoph 38250 26250 3737
kevin j bacon 108140 95566 49421
patricia a corzine 85275 74400 48601
nonexecutive directors
alan m jackson 370198 350198 319774
john e jackson 49166 49166 52500
andrew thomas 48888 48888 50000
david h richardson 5000 na na
robert ivell na na 10000
 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 30925 pence and the range during the
year was 148 pence to 30925 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 16126427 82
jp morgan asset management 14682268 75
barclays global investors 11807878 60
capital international 10275443 52
legal  general investment management 8839914 45
m  g investment management 8616578 44
fc asset management 8376065 43
old mutual asset managers 7458236 38
aberforth investment managers 7357438 38
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 nonexecutive 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 nonexecutive 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 nonexecutive 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 threeyear 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 daytoday 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 reelection thereafter at intervals of not more than three years
there is significant involvement from the nonexecutive directors this involves an ongoing dialogue with executive directors with
constructive challenges of performance and the group’s strategy the nonexecutive 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 uptodate trading information 
the nonexecutive 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 nonexecutive directors
to gain an understanding of the whole business nonexecutive 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 nonexecutive 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 ongoing 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 nonexecutive 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 nonexecutive directors the nonexecutive 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 reelection 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 nonexecutive director of the company for more than nine years and in accordance with corporate
governance best practice also offers himself for reelection 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 nonexecutive 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 nonexecutive 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 nonaudit 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 
nonexecutive 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 longterm sustainable and growing cash flows in pursuit of this we have built a business which is focused on the growing
casual eatingout 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 rollout 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 likeforlike sales
growth from our existing restaurants our concessions business operates in a dynamic and complicated market where our management
teams have marketleading 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 brandstandard 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
likeforlike 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 likeforlike 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 3035 new restaurants during 2007
ebitda
the ability of the group to finance its rollout 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 £556m 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 125
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 daytoday 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 subcommittees 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 postinvestment 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 parttime 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 onetoone 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 nonrenewable 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 threeyear interest rate swap for an initial notional amount of £20000000
rising to £50000000 from 18 april 2006 until 16 january 2008 when it reduces to £30000000 until 16 january 2009 at which date it
terminates the fixed rate for the duration of the three years is 4695 
before the impact of the interest rate swap the average rate of interest charged during the year on the group’s debt was 576 2005 532
and the average year end rate was 630 2005 550 on 2006 results net interest was covered 120 times 2005 175 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 01 2005 01 and interest cover would remain at 120 times 2005 174 times 
at 31 december 2006 the group had gross borrowings including overdraft of £482 million 2005 £128 million and cash balances 
of £07 million 2005 £04 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 nonexecutive 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 nonexecutive 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
• longterm 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 longterm 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 equitybacked
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 lockin 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 longterm 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 sharebased 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 benefitsinkind 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
longterm incentives
the company operates the 2005 longterm 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
longterm incentive plan
the 2005 longterm incentive plan “ltip” approved by shareholders at an extraordinary general meeting on 9 november 2005 is 
the primary longterm 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 375 of base salary per annum 
the aggregate value of annual awards conditional and matching is capped at 1375 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 pa for between 30 and 100 of this part of the award to vest 
ie 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 threeyear 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 ie 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 031 match for average eps growth of rpi plus 4 pa rising on a straight line basis to 
the full 11 match for average eps growth of rpi plus 10 pa
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 outturn 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 threeyear
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 allshare 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 ma critoph 7 july 2004 1 year
kevin j bacon 17 march 2003 1 year
patricia a corzine 31 march 2003 1 year
nonexecutive directors
the service contracts of the nonexecutive directors were each set for an initial threeyear 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 reelected 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 reelection 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 nonexecutive 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 nonexecutive chairman 
all nonexecutive directors have specific terms of engagement and their remuneration is determined by the board based on a review of
fees paid to nonexecutive directors of similar companies and reflects the time commitment and responsibilities of each role the basic 
fee paid to the nonexecutive directors excluding alan m jackson in the year was £40000
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 allshare 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 1416 394 1810 2232
money purchase pension contributions 284 – 284 178
1700 394 2094 2410
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 ma 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 1416 2112
1
alan m jackson was executive chairman during 2005 and on 1 january 2006 became nonexecutive 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 £114750 and £60000 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 nonexecutive
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 ma 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 £121635 and £63600 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 19430000 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 800000 – 400000 – 400000 450p 562004 562011
2003 178114 – – – 178114 674p 472006 472013
2003 200000 – – – 200000 977p 4102007 4102014
2003 saye 11993 – – – 11993 790p 1122007 162008
2003 250000 – – – 250000 1344p 442008 442015
ltip 1 137755 – – – 137755 – publication of 6 months
2008 results after vesting
ltip 2 103316 – – – 103316 – publication of 6 months 
2008 results after vesting
andrew page 2003 716223 – – – 716223 674p 472006 472013
2003 200000 – – – 200000 977p 4102007 4102014
2003 saye 11993 – – – 11993 790p 1122007 162008
2003 250000 – – – 250000 1344p 442008 442015
ltip 1 180272 – – – 180272 – publication of 6 months
2008 results after vesting
ltip 2 67602 – – – 67602 – publication of 6 months
2008 results after vesting
stephen ma critoph 2003 250000 – – – 250000 977p 4102007 4102014
2003 50000 – – – 50000 1344p 442008 442015
ltip 1 112244 – – – 112244 – publication of 6 months
2008 results after vesting
ltip 2 42091 – – 4924 37167 – publication of 6 months
2008 results after vesting
2006 saye – 5843 – – 5843 1600p 162009 1122009
kevin j bacon 2003 427071 – 427071 – – 674p 472006 472013
2003 100000 – – – 100000 977p 4102007 4102014
2003 saye 11993 – – – 11993 790p 1122007 162008
2003 140000 – – – 140000 1344p 442008 442015
ltip 1 119047 – – – 119047 – publication of 6 months
2008 results after vesting
ltip 2 44642 – – 4700 39942 – publication of 6 months
2008 results after vesting
patricia a corzine 2003 200974 – 200974 – – 674p 472006 472013
2003 100000 – – – 100000 977p 4102007 4102014
2003 saye 11993 – – – 11993 790p 1122007 162008
2003 100000 – – – 100000 1344p 442008 442015
ltip 1 102040 – – – 102040 – publication of 6 months
2008 results after vesting
ltip 2 38265 – – 4028 34237 – 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 145929 – publication of 6 months
2009 results after vesting
ltip 4 23110 – publication of 6 months
2009 results after vesting
stephen ma critoph ltip 3 69124 – publication of 6 months
2009 results after vesting
ltip 4 20737 – publication of 6 months
2009 results after vesting
kevin j bacon ltip 3 73732 – publication of 6 months
2009 results after vesting
ltip 4 21313 – publication of 6 months
2009 results after vesting
patricia a corzine ltip 3 64516 – publication of 6 months
2009 results after vesting
ltip 4 18433 – 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 25 over the threeyear 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 2400000 ordinary shares on 5 june 2001 at an exercise price of 45p per share
this option was divided into three tranches of 800000 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 400000 450p 2050p 640 426
kevin j bacon 427071 674p 2335p 709 177
patricia a corzine 200974 674p 2335p 334 –
following the year end date of 31 december 2006 andrew page has exercised 716223 options at a grant price of 674 pence and 
alan m jackson has exercised 200000 options at a grant price of 450p
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 noncurrent 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
owneroccupied 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 straightline 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 310 years
motor vehicles 4 years
computer equipment 35 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 sharebased 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 pretax 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 preopening 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 £95m against the loan note repayable in 2008
b impairment of goodwill
the group determines whether goodwill is impaired at least on a twiceannual basis this requires an estimate of the value in use of the
assets to which goodwill is ascribed estimating the valueinuse 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 199 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 314018 730 314748 263878 38450 302328
cost of sales 4 256060 1026 257086 218049 34528 252577
gross profitloss 57958 296 57662 45829 3922 49751
administration costs 4 18475 – 18475 19019 777 19796
release of accrual for property exit costs 5 – – – 1700 – 1700
provision against carrying value 
of loan note from associate 5 9500 – 9500 –––
loss on integration of dpp 5 4582 – 4582 –––
loss and provision for loss on disposal 
of fixed assets 5 – – – 2594 – 2594
operating profitloss 25401 296 25105 25916 3145 29061
interest payable 7 3308 – 3308 2692 – 2692
interest receivable 7 699 – 699 689 – 689
profitloss before share 
of associate and tax 22792 296 22496 23913 3145 27058
share of posttax result in 
associated undertaking 13 917 – 917 600 – 600
profitloss before tax 21875 296 21579 23313 3145 26458
profitloss before tax analysed as
trading business – managed 35312 296 35016 26394 3145 29539
dpp restaurants limited trading result – 
not managed – – – 1733 – 1733
nontrading items 5 13437 – 13437 1348 – 1348
21875 296 21579 23313 3145 26458
tax on profitloss from ordinary activities 8 11264 101 11163 7567 1050 8617
profitloss on ordinary activities after tax 10611 195 10416 15746 2095 17841
profit on sale of businesses net of tax 5 – 3950 3950 – 5504 5504
profit for the financial year 
attributable to equity shareholders 10611 3755 14366 15746 7599 23345
earnings per share pence
basic 9 536 190 726 727 351 1078
diluted 9 534 189 723 722 348 1070
dividend per share pence – ordinary 10 600 475
– special 10 1600 – 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 91436 75883
adjustment to opening equity for inclusion of swaps under ias 32 and ias 39 – 127
opening equity ifrs including ias 32 and ias 39 91436 76010
profit for the year 14366 23345
foreign exchange translation differences 1 165
deferred tax credit on sharebased payments taken directly to equity 1529 411
total recognised income and expense for the year 15896 23591
dividends – ordinary 10 9490 9277
dividends – special 10 34793 –
issue of new shares 19 21 1096 604
sharebased payments – credit to equity 20 1059 508
total changes in equity in the year 26232 15426
closing equity 65204 91436 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
noncurrent assets
intangible assets 11 11275 11275
property plant and equipment 12 174035 151337
investment in associate 13 7810 8727
trade and other receivables 13 875 10375
193995 181714
current assets
stock 14 2992 2763
financial assets – derivative financial instruments 24 652 7
trade and other receivables 15 5170 5498
prepayments 12138 11094
cash and cash equivalents 23 683 426
21635 19788
total assets 215630 201502
current liabilities
shortterm borrowings 23 1165 1845
income tax liabilities 4947 8315
trade and other payables 16 74864 71476
80976 81636
net current liabilities 59341 61848
noncurrent liabilities
longterm borrowings 23 47000 11000
other payables 25 2737 2696
deferred tax liabilities 18 16247 13971
provisions 17 3466 763
69450 28430
net assets 65204 91436
equity
share capital 19 54863 54366
share premium 21 20346 19747
foreign currency reserve 21 81 80
other reserves 21 1823 764
retained earnings 21 11909 16479
total equity shareholders’ interests 65204 91436
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 ma critoph aca
nonexecutive 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 63374 55484
interest received 68 219
interest paid 2906 2076
tax paid 9656 8199
net cash flows from operating activities 50880 45428
cash flows from investing activities
acquisition of associate – 10186
acquisition of subsidiary net of cash acquired – 26889
disposal of business net of cash disposed 1455 32982
disposal of subsidiary net of cash disposed – 5630
integration of business 584 –
purchase of property plant and equipment 40775 39767
proceeds from sale of property plant and equipment 58 708
net cash used in investing activities 42756 37522
cash flows from financing activities
net proceeds from issue of ordinary share capital 1096 604
net proceeds from issue of bank loan 36000 4000
dividends paid to shareholders 44283 9277
net cash used in financing activities 7187 4673
net increase in cash and cash equivalents 937 3233
cash and cash equivalents at start of year 23 1419 4652
cash and cash equivalents at end of year 23 482 1419 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 236258 62703 265 50745 215
concessions 72479 15154 209 11088 153
principal trading brands 308737 77857 252 61833 200
noncore brands 5281 1789 339 1999 378
continuing operations 314018 76068 242 59834 191
discontinued operations 730 296 406 296 406
total all brands 314748 75772 241 59538 189
preopening costs included in cost of sales 1876 06 1876 06
administration 17192 55 17416 55
sharebased payments 1059 03 1059 03
ebitdaoperating profit 314748 55645 177 39187 125
release of accrual for property exit costs –
provision against carrying value of loan note from associate 9500
loss on integration of dpp 4582
restructuring costs –
loss and provision for loss on disposal of fixed assets –
operating profit 25105
year ended 1 january 2006
ebitda profit
turnover ebitda margin profit margin
£’000 £’000  £’000 
leisure 189009 49541 262 39974 211
concessions 59771 12360 207 8919 149
principal trading brands 248780 61901 249 48893 197
noncore brands 15098 785 52 1553 103
continuing operations 263878 61116 232 47340 179
discontinued operations 38450 6977 181 3922 102
total all brands 302328 68093 225 51262 170
preopening costs included in cost of sales 1511 05 1511 05
administration 17179 57 18954 63
sharebased payments 508 02 508 02
ebitdaoperating profit 302328 48895 162 30289 100
release of accrual for property exit costs 1700
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 2594
operating profit 29061
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 11958 31628 167970 43086
concessions 4066 5087 19099 11504
principal trading brands 16024 36715 187069 54590
noncore brands 210 – 2233 7112
continuing operations 16234 36715 189302 61702
discontinued operations – – – 2568
total all brands 16234 36715 189302 64270
central items 224 4060 10920 10614
unallocated items – – 15408 75542
dpp restaurants limited ––––
total group 16458 40775 215630 150426
year ended 1 january 2006
capital segment segment
depreciation additions assets liabilities
£’000 £’000 £’000 £’000
leisure 9567 26980 145293 31518
concessions 3441 6794 17431 9371
principal trading brands 13008 33774 162724 40889
noncore brands 210 – 3538 2837
continuing operations 13218 33774 166262 43726
discontinued operations 3055 864 – 5603
total all brands 16273 34638 166262 49329
central items 1775 6272 7562 16169
unallocated items – – 25444 42845
dpp restaurants limited 558 147 2234 1723
total group 18606 41057 201502 110066
segmental assets are allocated to divisions where possible unallocated segmental assets include the investment in associate 
noncurrent 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 199 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 oneoff nature and not representative of the underlying trading
performance of the business these have been separately identified in the additional income statement as nontrading 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 314018 730 314748 – – 314748
cost of sales
excluding preopening costs 254184 1026 255210 –– 255210
preopening costs 1876 – 1876 –– 1876
256060 1026 257086 –– 257086
gross profitloss 57958 296 57662 – – 57662
administration costs
excluding oneoff costs 18475 – 18475 –– 18475
restructuring costs – – – –– –
18475 – 18475 –– 18475
trading profitloss 39483 296 39187 – – 39187
release of accrual for property exit costs – – – –– –
provision against carrying value of loan note from associate – – – 9500 – 9500
loss on integration of dpp – – – 4582 – 4582
loss and provision for loss on disposal of fixed assets – – – –– –
operating profitloss 39483 296 39187 14082 – 25105
interest payable 3308 – 3308 –– 3308
interest receivable 54 – 54 645 – 699
profitloss before share of associate and tax 36229 296 35933 13437 – 22496
share of posttax result in associated undertaking 917 – 917 –– 917
profitloss on ordinary activities before tax 35312 296 35016 13437 – 21579
tax on profitloss from ordinary activities 12364 101 12263 1100 – 11163
profitloss on ordinary activities after tax 22948 195 22753 12337 – 10416
profit on sale of businesses net of tax –– – 3950 – 3950
profitloss for the year 22948 195 22753 8387 – 14366
earnings per share pence
basic 1150 726
diluted 1145 723
dividend per share pence – ordinary 600
– special 1600 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 248843 38450 287293 – 15035 302328
cost of sales
excluding preopening costs 200851 34528 235379 – 15687 251066
preopening costs 1511 – 1511– – 1511
202362 34528 236890 – 15687 252577
gross profitloss 46481 3922 50403 – 652 49751
administration costs
excluding oneoff costs 17664 777 18441 – 1021 19462
restructuring costs – – – 334 – 334
17664 777 18441 334 1021 19796
trading profitloss 28817 3145 31962 334 1673 29955
release of accrual for property exit costs – – – 1700 – 1700
provision against carrying value of loan note from associate – – – –– –
loss on integration of dpp – – – –– –
loss and provision for loss on disposal of fixed assets – – – 2594 – 2594
operating profitloss 28817 3145 31962 1228 1673 29061
interest payable 2512 – 2512 120 60 2692
interest receivable 689 – 689 –– 689
profitloss before share of associate and tax 26994 3145 30139 1348 1733 27058
share of posttax result in associated undertaking 600 – 600 –– 600
profitloss on ordinary activities before tax 26394 3145 29539 1348 1733 26458
tax on profitloss from ordinary activities 8817 1050 9867 470 780 8617
profitloss on ordinary activities after tax 17577 2095 19672 878 953 17841
profit on sale of businesses net of tax – – – 5504 – 5504
profitloss for the year 17577 2095 19672 4626 953 23345
earnings per share pence
basic 908 1078
diluted 901 1070
dividend per share pence – ordinary 475
– 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 236258 62703 265 50745 215
concessions 72479 15154 209 11088 153
principal trading brands 308737 77857 252 61833 200
noncore brands 5281 1789 339 1999 378
continuing operations 314018 76068 242 59834 191
discontinued operations 730 296 406 296 406
total all brands 314748 75772 241 59538 189
preopening costs included in cost of sales 1876 06 1876 06
administration 17192 55 17416 55
sharebased payments 1059 03 1059 03
ebitdaoperating profit 314748 55645 177 39187 125
total net interest charges 3254
profit before taxation and share of associate’s result 35933
share of losses of associated undertaking 917
profit before taxation 35016
taxation 12263
profit after taxation 22753
earnings per share pence – trading business
basic 1150
diluted 1145
year ended 1 january 2006
ebitda profit
turnover ebitda margin profit margin
£’000 £’000  £’000 
leisure 189009 49541 262 39974 211
concessions 59771 12360 207 8919 149
principal trading brands 248780 61901 249 48893 197
noncore brands 63 691 – 901 –
continuing operations 248843 61210 246 47992 193
discontinued operations 38450 6977 181 3922 102
total all brands 287293 68187 237 51914 181
preopening costs included in cost of sales 1511 05 1511 05
administration 16158 56 17933 62
sharebased payments 508 02 508 02
ebitdaoperating profit 287293 50010 174 31962 111
total net interest charges 1823
profit before taxation and share of associate’s result 30139
share of losses of associated undertaking 600
profit before taxation 29539
taxation 9867
profit after taxation 19672
earnings per share pence – trading business
basic 908
diluted 901
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 314018 248843
dpp restaurants limited – 15035
continuing operations 314018 263878
discontinued operations 730 38450
total revenue for the year 314748 302328
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 199 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 254184 200851
preopening costs 1876 1511
dpp restaurants limited – 15687
continuing operations 256060 218049
discontinued operations 1026 34528
total cost of sales for the year 257086 252577
included in administration costs are the following
continuing business – owned and managed during the year 18475 17664
restructuring costs – 334
dpp restaurants limited – 1021
continuing operations 18475 19019
discontinued operations – 777
total administration costs for the year 18475 19796
other amounts included within operating expenses are
depreciation 16458 18606
operating lease rentals of land and buildings 44102 41813
rental income 5960 3406
auditor’s remuneration
audit services 113 105
auditrelated 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 
£248000 was expensed as administration costs in 2005 of the total fees paid to auditors £187000 was expensed as administration
costs £73000 was expensed as professional fees incurred on disposal of businesses and £37000 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 nontrading items
2006 2005
£’000 £’000
a items classified as nontrading within ordinary activities
i provision against carrying value of loan note from associate 9500 –
ii loss on integration of dpp 4582 –
iii finance gaincharge arising from remeasurement of interest rate swap 645 120
iv release of accrual for property exit costs – 1700
iv loss and provision for loss on disposal of fixed assets – 2594
iv restructuring costs – 334
13437 1348
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 £95m 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 £06m 2005 £01m 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 £09m in respect of loss and provision for loss on disposal of assets and a charge 
of £03m on restructuring costs
2006 2005
£’000 £’000
b profit on sale of business
i profit on disposal of est est est restaurants limited 184 1582
ii profit on disposal of the caffe uno business 2696 3692
iii share of profit made on disposal of business by associate – 400
2880 5674
tax on sale of businesses 1070 170
profit on sale of business after tax 3950 5504
i on 31 march 2005 the group sold est est est limited to living ventures limited and a profit of £16m was recognised a further profit
of £02m 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 £37m 
in 2006 a further £27m 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 timelapsed 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 £04m 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 86403 84123
social security costs 6759 6482
sharebased payments 1059 508
pension costs 258 333
94479 91446
b staff numbers
united kingdom 7579 7430
europe 84 92
7663 7522
c directors’ remuneration £’000 £’000
emoluments 1810 2232
money purchase and other pension contributions 284 178
2094 2410
charge in respect of share options 586 232
2680 2642
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 2816 1833
other interest payable 149 290
interest on obligations under finance leases 343 449
fair value charge on interest rate swap – 120
total borrowing costs 3308 2692
net finance charges 2609 2003
8 taxation
2006 2005
£’000 £’000
a the taxation charge comprises
current taxation
uk corporation tax at 30 8594 9202
adjustments in respect of previous periods 115 187
8479 9015
deferred taxation
origination and reversal of timing differences 2684 15
adjustments in respect of previous periods – 413
2684 398
taxation charge on ordinary activities 11163 8617
taxation creditcharge on disposal of businesses 1070 170
total taxation charge for the year including impact of disposal of businesses 10093 8787
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 21579 26458
profit on ordinary activities before taxation multiplied
by the standard uk corporation tax rate of 30 2005 30 6474 7937
effects of
loss made by associate with no tax credit available 276 60
depreciation on nonqualifying assets 1555 1373
expenses not deductible for tax purposes 3110 150
loss on disposal of nonqualifying 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 11163 8617
tax creditcharge on disposal of businesses 1070 170
total taxation charge for the year including impact of disposal of businesses 10093 8787
current tax on ordinary activities consists of £8568000 2005 £8056000 for continuing activities and a credit of £89000 2005 £959000
charge in respect of discontinued activities deferred tax on ordinary activities consists of £2696000 2005 £489000 credit in respect 
of continuing activities and a credit of £12000 2005 £91000 charge in respect of discontinued activities in addition a tax credit of
£1070000 2005 £170000 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 197790404 216576330
total basic profit for the year £’000 14366 23345
basic earnings per share for the year pence 726 1078
effect of nontrading items on earnings for the year £’000 8387 4626
effect of consolidation of dpp restaurants limited for the year £’000 – 953
earnings excluding nontrading items £’000 22753 19672
adjusted earnings per share pence 1150 908
b continuing and discontinued activities
profit for the year from continuing activities £’000 10611 15746
basic earnings per share from continuing activities pence 536 727
profit for the year from discontinued activities £’000 3755 7599
basic earnings per share from discontinued activities pence 190 351
c diluted earnings per share
weighted average ordinary shares in issue during the year 197790404 216576330
dilutive shares to be issued in respect of options granted under the share option scheme 953597 1668454
198744001 218244784
diluted earnings per share pence 723 1070
diluted adjusted earnings per share pence 1145 901
diluted earnings per share from continuing activities pence 534 722
diluted earnings per share from discontinued activities pence 189 348
the additional earnings per share information where nontrading 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 384p 2004 3375p per share 7442 7306
interim dividend for the year ended 31 december 2006 of 105p 2005 091p per share 2048 1971
9490 9277
special dividend of 16p per share paid on 9 march 2006 34793 –
44283 9277
proposed final dividend for the year ended 31 december 2006 of 495p 2005 384p per share 9656 7442
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 £348m 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 11275
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 threeyear business plan with discount rates of 8 applied a growth rate
beyond the cycle of 25 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 176956 85366 262322
exchange movement 110 107 217
acquisitions 18270 3850 22120
additions 28113 12944 41057
disposals 52277 21557 73834
at 1 january 2006 170952 80496 251448
depreciation
at 1 january 2005 60439 47205 107644
exchange movement 64 5 69
acquisitions 474 1798 2272
provided during the year 10396 8210 18606
impairment 2890 470 3360
disposals 18463 13239 31702
at 1 january 2006 55672 44439 100111
cost
at 2 january 2006 170952 80496 251448
exchange movement 112
acquisitions –––
additions 27344 13431 40775
disposals 3439 8142 11581
at 31 december 2006 194858 85786 280644
depreciation
at 2 january 2006 55672 44439 100111
exchange movement 1– 1
acquisitions –––
provided during the year 12207 4251 16458
impairment 359 1225 1584
disposals 3439 8106 11545
at 31 december 2006 64800 41809 106609
net book value as at 1 january 2006 115280 36057 151337
net book value as at 31 december 2006 130058 43977 174035
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 29986 27242
long leasehold 1739 1807
short leasehold 98333 86231
130058 115280
assets held under finance leases
cost
at start of year 1961 3438
disposals – 1477
at end of year 1961 1961
depreciation
at start of year 982 661
provided during the year 41 61
impairment – 520
disposals – 260
at end of year 1023 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 £917000 nine months of 2005 following acquisition £200000 loss summarised financial
information on living ventures limited for the year is as follows
2006 2005
£’000 £’000
noncurrent assets 34857 36216
current assets 3606 6850
noncurrent liabilities 29478 29344
current liabilities 9458 11951
equity 473 1771
revenue 47567 35647
loss before disposal of brand 2292 1501
net loss 2292 500
at 31 december 2006 living ventures was contractually committed to £25000 2005 £30000 of capital expenditure the trade and
other receivable disclosed as a noncurrent 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 £95m 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 £75362000 of purchases as an expense in 2006 2005 £73118000
15 trade and other receivables
2006 2005
£’000 £’000
amounts falling due within one year
trade debtors 2583 2642
other debtors 2587 2856
5170 5498
16 trade and other payables
2006 2005
£’000 £’000
amounts falling due within one year
trade creditors 30110 24399
other tax and social security 9511 9005
other creditors 8964 8648
accruals 26279 29424
74864 71476
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 3009 431
utilised during the year 306 293
balance at end of year 3466 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 75 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 13971 15725
capital allowances in advance of depreciation charged to the income statement 2845 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 1518
deferred tax taken directly to the income statement 2696 2220
share options deferred tax credit taken directly to equity 1529 411
deferred tax adjustment on sale of est est est restaurants limited – 1719
deferred tax arising on acquisition of blubeckers limited – 2596
1529 466
transfer to corporation tax 1109 –
balance at end of year 16247 13971
2006 2005
£’000 £’000
deferred tax consists of
capital allowances in advance of depreciation 18183 14229
capital gains held over 460 460
capital gains rolled over 633 633
other timing differences 3029 1351
16247 13971
19 share capital
number £’000
authorised
at 1 january 2005 and 2006 ordinary shares of 25p each 320000000 80000
share consolidation on 27 february 2006 35555556 –
at 31 december 2006 ordinary shares of 28
1
 8p each 284444444 80000
allotted called up and fully paid
at 1 january 2005 216346706 54087
exercise of share options 1115863 279
at 1 january 2006 25p ordinary shares 217462569 54366
share consolidation on 27 february 2006 24162505 –
revised number of shares 28
1
 8p ordinary shares 193300064 54366
exercise of share options 1767199 497
at 31 december 2006 195067263 54863
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 284444444 shares and the allotted called up and fully paid up number of shares was 193300064
immediately after the share consolidation
during the year 1767199 ordinary shares of 28
1
8p were allotted and fully paid 2005 1115863 ordinary shares of 25p the nominal
value received was £497000 2005 £279000 and total consideration received was £1096000 2005 £604000
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 sharebased payment schemes
the group has taken advantage of the exemption under ifrs 2 “sharebased 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
sharebased payment schemes 1059 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
20022009 1998 50244 110586 750p
20032010 1998 6030 58853 486p
20042011 note 1 400000 800000 450p
20062013 2003 967742 2231825 674p
20072014 2003 1667500 1760000 977p
20072008 2003 saye 401602 444772 790p
20082015 2003 1479000 1544000 1344p
2009 2003 saye 266029 – 1600p
2009 2005 ltip 1466051 – –
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 400000 share options at an exercise price 
of 45p and as at 31 december 2006 there are 400000 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 5705264 948p 5304658 775p
granted –– 1629000 1344p
exercised 1367199 670p 715863 591p
lapsed 167549 1101p 512531 911p
outstanding at the end of the year 4170516 1033p 5705264 948p
exercisable at the end of the year 1029543 677p 169439 658p
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 sharebased payment schemes continued
longterm incentive plan
on 9 november 2005 an extraordinary general meeting of the restaurant group plc approved the adoption of a new longterm
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 1131188 conditional award share options and 643515
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 308652
options have lapsed and a total of 1466051 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 
£147 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 567263 conditional award
share options and 247908 matching award share options were granted at a value of £3255 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 ukbased
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 threeyear 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 – 444472 – 505212
granted 292317–––
exercised ––––
lapsed 26288 42870 – 60740
outstanding at end of the year 266029 401602 – 444472
assumptions used in valuation of sharebased payments
2005 ltip
conditional 2005 ltip
award matching
scheme saye tsr element eps element award 2003 esop
grant date 27406 81105 81105 81105 4405
average share price for five preceding days to grant date 2000p 1470p 1470p 1470p 1344p
exercise price 1600p––– 1344p
number of options originally granted 292317 340113 791075 643515 1629000
minimum vesting period years 3 years 3 years 3 years 3 years 3 years
expected volatility 25 23 23 23 28
contractual life 35 years 35 years 35 years 35 years 10 years
risk free rate 467 435 435 435 470
expected dividend yield 218 000 000 000 320
expected forfeitures 9 5 5 5 9
fair value per option 717p 951p 1470p 1470p 360p
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 54087 19422 245 256 1873
adjustment to opening reserves for inclusion of swaps under ias 39 –––– 127
revised reserves at 1 january 2005 54087 19422 245 256 2000
issue of shares 279 325–––
profit for the year –––– 23345
dividends –––– 9277
sharebased payments – credit to equity – – – 508 –
deferred tax credit on sharebased payments taken directly to equity –––– 411
foreign exchange translation differences – – 165 – –
at 1 and 2 january 2006 54366 19747 80 764 16479
issue of shares 497 599–––
profit for the year –––– 14366
dividend – ordinary –––– 9490
dividend – special –––– 34793
sharebased payments – credit to equity – – – 1059 –
deferred tax credit on sharebased payments taken directly to equity –––– 1529
foreign exchange translation differences – – 1 – –
at 31 december 2006 54863 20346 81 1823 11909
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 £50400000 2005 £50400000
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 21579 26458
net finance charges 2609 2003
loss and provision for loss on disposal of fixed assets – 2594
release of accrual for property exit costs – 1700
loss on integration of dpp net of operating cash flow 4101 –
provision against carrying value of loan note from associate 9500 –
share of loss made by associate 917 600
non cash charge reversed in reserves 1059 508
depreciation 16458 18606
increase in stocks 229 439
increase in debtors 1295 2451
increase in creditors 8675 9305
cash flows from operating activities 63374 55484
discontinued operations had a negative ebitda of £296000 2005 £6977000 contribution and capital additions of £nil 2005 £864000
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 noncash 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 £95m against the carrying value
of the loan note payable in 2008 the impairment represents a significant noncash 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 12419 11652
movements in the year
loans taken out 36000 4000
cash inflow 937 3233
at the end of the year 47482 12419
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 5134 3289 1845 680 1165
3233 937
bank loans due within one year –––– –
bank loans due after one year 7000 4000 11000 36000 47000
4000 36000
11652 767 12419 35063 47482
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 5170 5498
current financial assets 5853 5924
noncurrent financial assets 875 10375
total financial assets 6728 16299
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
shortterm borrowings – at floating interest rates 1165 1845
trade and other payables 74864 71476
shortterm financial liabilities 76029 73321
longterm borrowings – at floating interest rates 47000 11000
finance lease debt 2737 2696
provisions 3466 763
longterm financial liabilities 53203 14459
financial liabilities 129232 87780
 total financial liabilities attracting interest were £48165000 2005 £12845000 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 630 2005 550
effective from 16 january 2003 the group entered into an interest rate swap for a notional amount of £20000000 to be fixed at 455
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 £20000000 to be fixed at 4395 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 £20000000 at 4395 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 £20000000 rising to
£50000000 from 18 april 2006 until 16 january 2008 when it reduces to £30000000 until 16 january 2009 when it terminates the
fixed rate for the duration of the three years is 4695
the group has £33000000 2005 £69000000 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 £47000000 2005 £11000000 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
overdraftloan maturing within one year 1165 1165 1845 1845
borrowings maturing after one year 47000 47000 11000 11000
47482 47482 12419 12419
the group does not hold any financial instruments for trading purposes the fair value of short term borrowings and cash in hand together
with shortterm noninterest bearing trade and other receivables and trade and other payables approximate to book values due to the
shortterm maturity of these instruments as highlighted in note 13 book value approximates to fair value in respect of the noncurrent
receivable of £875000 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 £652000 2005 £7000 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 £127000
with an equivalent increase in equity
d credit risk
the group has credit risks on its trade debtors and the longterm 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 £95m provision against the longterm 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 1082 1082 – 1214 1214 –
after five years 6427 3690 2737 6748 4052 2696
7780 5043 2737 8205 5509 2696
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 1942 – 364 108
within two to five years 22859 1316 25730 1559
after five years 405723 49724 371215 34753
430524 51040 397309 36420
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 15948 14206
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
£634000 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 £522000 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 £10375000 outstanding at that date
£1156000 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 £95m against
the loan note repayable in 2008
for the year to 31 december 2006 alan m jackson received a fee of £35000 2005 £35000 from living ventures limited in 
respect of his duties as nonexecutive chairman of that company during 2005 mr jackson also received a fee of £222000 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 nonexecutive 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 £73850 per annum in addition the group purchased
products with a value totalling £576000 2005 £414000 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 7810 10186
investments in subsidiary undertakings ii 110242 109183
118052 119369
current assets
debtors – inter company balances 36529 11529
36529 11529
creditors
amounts falling due within one year – inter company balances iii 49810 46623
net current liabilities 13281 35094
total assets less current liabilities 104771 84275
net assets 104771 84275
capital and reserves
called up share capital vi 54863 54366
share premium account vi 20346 19747
other reserves vi 1823 764
profit and loss account vi 27739 9398
shareholders’ funds – equity 104771 84275
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 ma critoph aca
nonexecutive 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 goingconcern 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 sharebased 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 10186
impairment of investment 2376
at 31 december 2006 7810 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 83972 26633 110605
reclassification of investment 17070 17070 –
additions – share option scheme – 1059 1059
at 31 december 2006 66902 44762 111664
amounts written off
at 2 january and 31 december 2006 888 534 1422
net book value at 31 december 2006 66014 44228 110242
net book value at 2 january 2006 66014 26099 109183
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 sl ordinary shares 100
dpp restaurants limited   ordinary shares 100
 held by subsidiary undertakings
 on 12 january 2006 the group acquired the remaining 801 of the share capital of dpp restaurants limited for a nominal sum
other than frankie  benny’s sl the company’s principal operating subsidiaries are registered in england and wales and operate
restaurants in the united kingdom frankie and benny’s sl 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 2303 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 £62624000 2005 loss of £7000 included in the profit for 2006 are dividends
received from subsidiary undertakings of £65000000 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 54366 19747 764 9398 84275
issue of shares in respect of share options 497 599 – – 1096
profit for the year – – – 62624 62624
employee share option schemes – – 1059 – 1059
dividends paid – – – 44283 44283
54863 20346 1823 27739 104771
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 314748 302328 255446 255446 227438 216386
trading business excluding dpp in 2005 39187 31962 26070 25904 21793 20099
underlying interest 3254 1823 1667 1179 2539 3284
share of associate 917 600 ––––
adjusted profit before taxation 35016 29539 24403 24725 19254 16815
loss before taxation made by dpp – 1733 ––––
nontrading items 13437 1348 3390 2597 2613 53
profit on ordinary activities before taxation 21579 26458 21013 22128 16641 16762
taxation 11163 8617 6942 7039 5606 3771
profit on ordinary activities after taxation 10416 17841 14071 15089 11035 12991
profit on sale of business net of tax 3950 5504––––
profit for the year 14366 23345 14071 15089 11035 12991
basic earnings per share 726p 1078p 659p 706p 568p 669p
adjusted earnings per share 1150p 908p 784p 795p 666p 671p
proposed total dividend per share 600p 475p 420p 420p 365p 350p
dividend cover excluding nontrading items 192 191 187 189 182 191
employment of finance
property plant  equipment 174035 151337 154678 149683 146220 143799
other noncurrent assets 19960 30377––––
net current liabilities 59341 61848 51014 55111 43617 79753
longterm liabilities 53203 14459 12056 7625 35687 1208
81451 105407 91608 86947 66916 62838
financed by
equity shareholders’ funds 65204 91436 75883 70855 50144 46560
deferred tax 16247 13971 15725 16092 16772 16278
81451 105407 91608 86947 66916 62838
net debt 47482 12419 11652 11294 38163 44600
gearing 728 136 154 159 761 958
interest cover before nontrading items times 120 175 156 220 86 61
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
nonexecutive chairman
andrew page
chief executive officer
stephen ma critoph
group finance director
kevin j bacon
executive director leisure
patricia a corzine
executive director concessions
john e jackson
nonexecutive
andrew thomas
nonexecutive
david h richardson
nonexecutive
company secretary
robert j morgan
registered office
151 st vincent street
glasgow g2 5nj
head office
57 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                       wwwcollegedesigncom 
strong brands
nationwide
the restaurant group plc 
annual report 2006
the restaurant group plc 
57 marshalsea road
london se1 1ep
tel 0845 612 5001
wwwtrgplccom
the restaurant group plc annual report 2006


Summary:
 
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 longterm 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 likeforlike 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 semirural 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 likeforlike 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 125 – 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 – likeforlike 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

25m
customers served 
in 2006
children’s meals served 
in frankie  benny’s
the restaurant group plc 
annual report 2006 07
 results are stated excluding nontrading 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 £2363m
 profit £507m
 operating margin 215
 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 likeforlike 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 1520 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 
likeforlike 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 
510 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 colocated with frankie  benny’s and we will
continue to pursue dual rollout 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 likeforlike 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 buildup 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 510 new restaurants blubeckers is well placed to benefit
from the trends towards increased eating out and its widespread
appeal across most socioeconomic 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 likeforlike 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 £725m
 profit £111m
 operating margin 153
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 likeforlike 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 noncore brands and associate
during the year losses from noncore activities increased from
£09m to £20m 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 
£09m 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 £95m 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 socioeconomic 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 demandside dynamics a key
concern for some time has been supplyside risk in this regard
we believe that we have positioned trg in market segments
which afford some protection from supplyside 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 higherquality longterm 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
likeforlike 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 likeforlike
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