Italian restaurant chain Carluccio's has fought against tough leisure sector conditions to increase revenue by 18% over the 16 weeks to 13th January.

The company believes its all-day trading model with an average spend of £12 per head will help it to combat a more difficult trading environment.

It will shortly expand outside of Britain with its first restaurant in Ireland through a franchise operation.

Despite the upbeat tone of its trading update, Carluccio's said market conditions are 'undoubtedly more challenging' than a year ago. It insists, however, that there is still a growing trend for people eating out.

It now has 34 restaurants with two recent openings in Stratford Upon Avon and Manchester. A new outlet will open within Heathrow Terminal 5 in March, to be followed by a presence in the refurbished London St. Pancras railway station. Later this year, Carluccio's will expand into Cambridge and then Leicester and Bristol.