The Restaurant Group (TRG) has announced plans to close up to 90 of its top restaurant sites across the UK by the end of 2021.
The casual dining enterprise whose empire includes Frankie & Benny’s, Chiquito, Brunning & Price, Garfunkel’s and Wagamama has revealed that at least 31 sites within its portfolio will not see their contract renewed with potential for this number to rise based on further discussions with landlords. It also plans to do away with 35 other sites, sell 12 of its freeholds and convert 12 of its lower-performing restaurants into more profitable Wagamama branches.
The closures will see the group diminish to a total of 260-275 sites from its current portfolio of 350 by the end of next year. The move is another casualty for the flailing casual dining industry which saw Jamie’s Italian go under last year.
TRG was boosted by the acquisition of Wagamama in October 2018 which saw its sales soar by 56.4 per cent, however its unprofitable leisure restaurants have since weighed it down resulting in a £37.3m pre-tax loss for the year, compared to a £13.9m loss in 2018.
Chiquito is another of the group's brands likely to face site culls
The revelation came as the group announced a like-for-like sales growth of 2.7 per cent for the year to December. Speaking about the closure plans Andy Hornby, chief executive officer of The Restaurant Group told the Press Association “Our three growth businesses of Wagamama, concessions and pubs are all out-performing their respective markets and have clear potential for further growth
“I am also acutely aware of the challenges facing our leisure business and the wider casual dining sector.
“Following an extensive review we have defined three clear strategic priorities for the next two years: Grow our Wagamama, concessions and pubs businesses; rationalise our leisure business; and accelerate our deleveraging profile.”
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