CHILICHICKS LTD

Executive Summary

CHILICHICKS LTD operates as a micro-sized takeaway food business within a highly competitive and cost-sensitive sector. While it shows operational growth in staffing and current assets, the company's negative equity and significant long-term liabilities indicate financial fragility compared to typical small food service operators. Navigating rising sector costs and digital transformation pressures will be critical for improving its competitive position and sustainability.

CHILICHICKS LTD - Analysis Report

Company Number: 13458848

Analysis Date: 2025-07-20 12:23 UTC

1. Industry Classification
   CHILICHICKS LTD operates within SIC code 56103, which classifies it under "Take-away food shops and mobile food stands." This sector is part of the broader food service industry, characterized by high competition, relatively low barriers to entry, and a focus on quick-service and convenience. Typical businesses in this sector include fast food outlets, takeaway restaurants, and food trucks. Key characteristics include thin profit margins, high sensitivity to location and foot traffic, and reliance on consistent customer demand.

2. Relative Performance
   As a micro-entity, CHILICHICKS LTD is in the smallest category of business size, with turnover and asset levels reflecting a small-scale operation. The company’s financials for the year ending 30 June 2023 show current assets of £52,372 and current liabilities of £50,000, resulting in net current assets of £27,640. However, the company reports net liabilities of £22,360 due to £50,000 in creditors falling due after one year, indicating longer-term debt obligations. Shareholders' funds are negative, which is a red flag compared to typical small food service businesses that usually maintain positive equity. The company has grown its average employee count from 7 to 9, suggesting some operational scaling. However, the financial position remains fragile relative to industry norms where even small takeaway businesses generally maintain positive equity and manageable debt levels.

3. Sector Trends Impact
   The takeaway food sector has been influenced by several key trends recently:

   • Increased Demand for Convenience: Growth in consumer preference for quick-service food and delivery has driven sector growth.
   • Rising Costs: Inflationary pressures on food ingredients, energy, and labour costs have squeezed margins.
   • Digital Ordering Platforms: Adoption of apps and delivery services has become essential, increasing marketing and commission expenses.
   • Health and Sustainability: Increasing consumer focus on healthier and sustainable food options is reshaping menus and supplier choices. CHILICHICKS LTD, as a small operator, must navigate these trends with limited financial flexibility. The company’s increased current assets suggest some cash or receivables growth, which may reflect expanding sales or better working capital management, but the negative net assets highlight challenges in sustaining growth amid rising costs and competitive pressure.

4. Competitive Positioning
   CHILICHICKS LTD appears to be a niche micro-operator in a highly competitive market dominated by both large chains and numerous small independents. Strengths include its ability to scale employee numbers slightly and maintain current asset growth. However, the negative equity position and significant long-term creditor liabilities indicate financial vulnerability. Compared to typical small takeaway businesses, CHILICHICKS LTD may face challenges in securing additional financing or investing in digital transformation, which is critical for competitiveness today. Its limited size and resources constrain its ability to leverage economies of scale or brand recognition, placing it at a disadvantage versus established competitors or well-capitalized startups.