Garfunkel's owner upbeat despite sales fall.

GARFUNKEL'S operator, The Restaurant Group, said 2009 had started "reasonably well" after like-for-like sales fell 2.5% on last year.

The update came as the company, which has more than 350 restaurants and bought Cheshire pub group Brunning & Price in 2007, posted pre-tax profits of pounds 48.9m for 2008, up 13% on a year earlier.

Chairman Alan Jackson said: "While 2008 was the most challenging year that our industry has experienced over the past decade or more, it looks likely that 2009 will be even more challenging."

The Restaurant Group also trades as Frankie & Benny's, Chiquito and Blubeckers.

The 2.5% fall in like-for-like sales so far this year represents an improvement on the trend seen in the final two months of last year. Across 2008, sales from comparable sites were 1.5% higher.

The company opened 40 new restaurants last year, creating 600 full and part-time jobs, but this year's plans have been hit by economic conditions.

With the deterioration in retail conditions prompting many landlords to delay new development projects, the company now anticipates it will open between 15 and 20 new sites during 2009.

The slowdown in construction projects has particularly impacted on out-of-town leisure and retail parks, the favoured location for the company's outlets.

Brunning & Price has 15 pubs in Cheshire, North Wales, Shropshire and the South East, including the Old Harkers Arms, in Chester.