Frankie & Benny’s owner The Restaurant Group to outline site closure plans
The Restaurant Group – which owns Chiquito, Frankie & Benny’s and Wagamama – is set to announce site closures as it publishes its full-year results this week.
Chief executive Andy Hornby – who joined the casual dining company in August – is expected to announce which underperforming sites will be closed.
Out-of-town retail park locations, where footfall has dropped in recent years, are reportedly in the firing line, according to the Mail on Sunday.
Last year the company said it expected to close at least 50 per cent of leisure sites reaching their next exit date and would “exit these sites earlier where possible”.
The closed 16 sites in the first eight months of 2019, including eight branches that were converted to Wafamama.
At the time the company said: “We are making progress in negotiations with landlords when there are lease events, having obtained rent reductions in the most recent negotiations as well as greater flexibility in lease terms.
“There remaining estate has a median of six years to the first potential exit date (i.e. lease expiry or the date at which we can exercise a break clause).
“We expect to exit at least 50 per cent of leisure sites reaching their next exit date, and will continue to explore market opportunities to exit these sites earlier where possible.”
The Restaurant Group fell to a pre-tax loss of £87.7m in the first half of last year, compared to profit of £12.2m profit the previous year, after taking a £100m writedown on the Frankie & Benny’s and Chiquito brands.