35 Additional Eateries Will Be Closed By The Owner Of Frankie & Benny's

The Restaurant Group said that the decision was made due to increasing overhead expenses and reduced spending by clients.

The enterprise, which now operates over 410 eateries, has announced plans to decrease its estate by 30% by eliminating underperforming locations over the course of the next year. It will not, however, be discontinuing its popular Wagamama restaurants.

This comes after The Restaurant Group stated that 250 of its locations, mostly under the Frankie & Benny's, Chiquito, and Food & Fuel banners, will be closing back in 2021.

The company's stock price dropped by more than two-thirds in the last year, and as a result, investors have begun to criticise the leadership and demand reform. On Wednesday, the company revealed that its pre-tax loss for 2022 had increased to £86.8m (from £35.2m the year before). The company employs 18,000 workers in the United Kingdom. And that was despite the fact that revenue hit £883m.

The group's chairman, Ken Hanna, described 2022 as "difficult" for the casual dining industry, as restaurants reopened to higher prices after being closed for the duration of the coronavirus crisis. Moreover, trading has been difficult due to worker shortages, salary demands, and increased ingredient prices. According to the company, cost-of-living constraints on the UK customer have also had an effect.

Andy Hornby, the CEO of the business, said that there was a "clear strategy" to expand the margins of the business over the course of the next three years and create tremendous value for all investors. Investment director at AJ Bell Russ Mould said that The Restaurant Group was under the heat from bigger investors who wanted the company to unload some of its franchises. He also noted that the company may benefit from divesting the Frankie & Benny's and Chiquito franchises so that it could concentrate on Wagamama, which is obviously a restaurant brand with real customer appeal.

 

Source: bbc.com