The Restaurant Group hints that it will close more Frankie and Benny’s and Chiquito locations
Wagamama owner The Restaurant Group is considering closing more Frankie and Benny’s and Chiquito locations as it focuses on the pan-Asian chain.
The company said sales in its leisure division, which includes Frankie & Benny’s, fell 4 percent this year.
In contrast, Wagamama’s sales rose 5 percent, while they increased 9 percent in the pub business, which owns Brunning & Price.
Closures: The Restaurant Group said sales in its leisure division – which includes Frankie & Benny’s – are down 4% so far this year
The company, known as TRG and led by former HBOS bank chief Andy Hornby, said plans to close 35 leisure centers by the end of the fiscal year are on track.
And it warned that more outlets may follow.
Meanwhile, TRG plans to open seven or eight Wagamamas a year from 2024.
The four outlets it recently opened are performing better than expected, and sales at the noodle chain have outperformed the market. Shares rose 0.5 percent, or 0.2 pence, to 39.2 pence yesterday.
Casual dining brands have faced significant pressure from sharp increases in food costs and utility bills as customers face higher household bills.
And Hornby, who propelled HBOS to the brink of collapse during the 2007-2009 financial crisis, is under intense pressure from disgruntled shareholders.
Activist investors Oasis Management and Irenic Capital Management want change.
Hong Kong-based Oasis has threatened to push for its removal unless things improve.
The chief executive also faced an uproar at the annual meeting in May, when 45.5 per cent of shareholders voted against his £792,000 remuneration package.