Owner of Frankie and Benny’s. Wagamama and Chiquitos announces it will close up to 35 more restaurants amid cost-of-living crisis
- The owner of Frankie and Benny and Chiquito will shut down 35 branches
- New Wagama restaurants will be opened as the firm seeks to reduce its losses
A huge restaurant chain is to close dozens of its much-loved branches in an effort to regain its lost earnings amid the cost of living crisis.
The Restaurant Group (TRG), which owns chains including Wagamama, Frankie & Benny’s and Chiquito, will close up to 35 restaurants over the next two years.
Branches of the company which have been making a loss will be shut down as the company looks to cut costs.
The move follows a run of other closures in the business, The Sun reported.
The restaurants affected in the move will only be Frankie and Benny and Chiquito branches, with at least three of them being turned in to Wagamamas.
(File Photo) The Restaurant Group, which owns chains including Frankie & Benny and Chiquito, will close up to 35 restaurants over the next two years
Branches of the company which have been making a loss will be shut down as the company looks to cut costs. Pictured: A Chiquito restaurant bar and Mexican grill pictured in Manchester
Around 30 per cent of the two restaurant chain branches will be closed down.
The company has roughly 400 restaurants in the UK which employ around 18,000 staff.
Andy Hornby, TRG’s chief executive, said the firm would try and mitigate job losses but was not specific about how many jobs could be lost.
He said: ‘A significant number of these potential sites are in areas where we have other brands, so the job impact should be significantly less than you might think from the number of sites that we will not be renewing.
‘We’ve delivered a strong operating performance for the year in a market which has continued to pose a number of headwinds for casual dining operators.
‘Current trading has been very encouraging to the great credit of our teams who continue to ensure our customers receive the best experience possible.’
(File Photo) Branches of Wagamama will open in place of some of the closed restaurants as the business seeks to regain on its losses
Shares in TRG previously fell to less than a third of their pre-pandemic value as the business was hit by the impact of Covid-19.
Its pre-tax losses also jumped from £35.2 million in 2021 to £86.8 million in 2022.
However, the firm’s shares recovered to £883 million in 2022, up from £636 million the previous year.
TRG reportedly wants to open at least five Wagamama restaurants every year for the next five years.
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