Frankie & Benny's owner to shut up to 90 restaurants

FRANKIE & Benny's owner The Restaurant Group (TRG) has said it plans to close up to 90 restaurant sites by the end of next year.

Wednesday, 26th February 2020, 9:10 am
Updated Wednesday, 26th February 2020, 2:54 pm
Frankie & Benny's owner is planning to shut up to 90 restaurants

The dining firm said the closures will impact sites across its leisure portfolio, which includes the Frankie & Benny's and Chiquito brands, and comes after it exited 18 sites in 2019.

The closure plan comes amid a tough period for casual dining chains, with rivals such as Jamie's Italian collapsing over the past year.

TRG said at least 31 of its leisure sites will not see their contract renewed, with the number potentially rising depending on discussions with landlords.

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It added that it also expects to dispose of up to 35 further sites, sell another 12 freehold sites, and plans to convert up to 12 current leisure restaurants into its more profitable Wagamama brand.

Currently there is a Frankie & Benny’s restaurant and a Chiquito opposite each other at Gunwharf Quays in Portsmouth.

TRG move to shut up to 90 restaurants will take its leisure portfolio down to 260-275 sites by the end of 2021, from 350.

The company confirmed the closure plans as it reported like-for-like sales growth of 2.7 per ceny for the year to December.

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The group saw total sales soar 56.4 per cent to £1.07 billion as it was buoyed by its £559 million acquisition of Wagamama in October 2018.

It said Wagamama continues to drive growth in the business, with the pan-Asian chain reporting an 8.5 per cent increase in like-for-like sales over the period.

The group, which has 650 sites in total, slipped to a pre-tax loss of £37.3 million for the year, from a £13.9 million loss in 2018, as it was weighed down by its unprofitable leisure restaurants.

Andy Hornby, chief executive officer of TRG, said: ‘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.’