Casino and restaurant operator, Rank, has announced that it will curtail its dependence on its Hard Rock café chain and will instead focus on its operations within the gaming sector.

While pre-tax profits at the Hard Rock restaurants were down 34 per cent at £23.1m and merchandise sales came in at 11.2 per cent lower than the year before, the group actually saw a 2.4 per cent rise in like-for-like food and drinks sales.

However, the Hard Rock chain also experienced a sharp downturn in US visitor figures to its UK sites, which in turn had a negative effect on sales.

A spokesperson for Rank said: “Despite encouraging performance in food and beverage revenues in the cafes, the absence of any significant recovery in international travel continued to undermine the merchandise sales.”

Rank will now be expanding its casino portfolio and rethinking its café operations. It has already applied for five new casino licenses in the UK and hopes to have 41 outlets open by next year.

Mike Smith, chief executive, said: “The main focus of our efforts in 2004 will be on gaming, where the opportunities for further development, especially following the proposed changes in the UK regulatory environment, could be significant.”

The group, which owns the Mecca Bingo chain and the Grosvenor casinos, saw gaming sales soar 70 per cent to £865.7m, helped by the acquisition of the Blue Square brand in January 2003.

Gaming was Rank’s only division that improved its performance last year, as pre-tax profits nudged up £3.9m to £108.7m, while overall full year takings for the group fell from £198m to £129.3m.

The company announced that it is hoping to open three new Grosvenor casinos – Stoke-on-Trent, Bolton and the relocated Cardiff – by the end of the year.

It also said that it is planning to benefit from the proposed change in gaming laws by opening a betting shop, using its Blue Square brand, at the site of its Victoria Casino in London – a move that has so far been prohibited by existing regulations. Details: www.rank.com