MORE than 100 Frankie and Benny's and Chiquito restaurants are set to close after the company that owns them posted huge losses.
The Restaurant Group registered a £87.7 million pre-tax loss in the six months to June 30, falling from a £12.2 million profit in the previous year.
The dining business said it has earmarked 42 restaurants which it plans to shut, in addition to 76 Frankie and Benny's sites identified for closure earlier this year.
But the closures will not be immediate with the general plan being to allow leases to run out at 'unattractive' locations.
It is not yet known if Frankie and Benny's at Gemini Retail Park will be affected.
The company is said to be facing challenging trading conditions in the casual dining sector and is also planning ahead with the 'uncertainties' created by the possibility of a no-deal Brexit.
The decline of The Restaurant Group's 'leisure arm' comes despite the group's acquisition of Wagamama which drove a 58 per cent increase in total sales to £515.9 million for the same period.
Debbie Hewitt, non-executive chairman of The Restaurant Group, said: "Prevailing feeling is that uncertainty is having an impact on consumer sentiment but we believe we have a sufficiently strong set of brands.
"Regarding Brexit, the supply of food and labour are the two issues we want clarity on and are working to ensure we are as prepared as possible."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel