The owner of Frankie & Benny’s The Restaurant Group (TRG) has said it plans to close up to 90 restaurant sites by the end of next year.
The restaurant firm said the closures will affect sites in its leisure portfolio, which includes the Frankie and Benny’s and the Chiquito brands, and it comes after it left 18 sites in 2019.
The closure plan comes amid a difficult period for informal restaurant chains, with rivals such as Jamie’s Italian collapsing over the past year.
TRG said that at least 31 of its entertainment sites will not see their contract renewed, and the number could increase depending on discussions with owners.
He added that he also hopes to ditch up to 35 more sites, sell another 12 wholly-owned sites, and plans to convert up to 12 current leisure restaurants into his most profitable sites. Wagamama Mark.
The move will reduce its leisure portfolio to 260-275 sites by the end of 2021, from 350.
TRG confirmed the closure plans, as it reported comparable sales growth of 2.7 percent for the year through December.
The group’s total sales soared 56.4 per cent to £ 1.07 billion, thanks to the acquisition of Wagamama for £ 559 million in October 2018.
He said Wagamama continues to drive growth in the business, with the pan-Asian chain reporting an 8.5 percent increase in like-for-like sales during the period.
The group, which has 650 sites in total, fell to a pre-tax loss of £ 37.3 million for the year, from a loss of £ 13.9 million in 2018, as it was hit by its non-leisure restaurants. profitable.
Andy Hornby, CEO of TRG, said: “Our three growing Wagamama businesses, concessions and pubs, are outpacing their respective markets and have clear potential for further growth.
“I am also very aware of the challenges facing our leisure business and the casual dining sector in general.
“After an extensive review, we have defined three clear strategic priorities for the next two years: growing our Wagamama, concession and pub businesses; streamline our leisure business; and accelerate our deleveraging profile. “