The Press and Journal (Inverness, Highlands, and Islands)
Filling station closure to leave cavity on high street
Restaurant group to shut underperforming branch within weeks
Another restaurant in Union Street, Aberdeen, is to shut after it was identified as “underperforming” by its owner.
The Restaurant Group (TRG) said yesterday its Filling StationbranchatNo 254onthe city’smainstreet would close within weeks, with 20-25 jobs affected.
It comes hot on the heels of Spanish restaurant La Tasca, just across the road, shutting its doors.
And chocolatier Thornton’s is closing its Union Street shop as the knock-on effect of the oil and gas industry slump hits city centre retailing.
TRG, which also owns the Frankie & Benny’s (F&B), Chiquito, Coast to Coast and Garfunkel’s restaurant chains, said a total of 33UKsites were shutting “immediately” as part of a strategic review.
The Aberdeen Filling Station – open since 2001 – is one of two doomed Scottish restaurants, joining a Chiquito in Glasgow on the hit list.
A restaurant in Edinburgh which was among the 33 earmarked for the chop has already closed.
TRG’s other sites, including two F&Bs, two Chiquitos and a Coast to Coast in Aberdeen and a Filling Station in Inverness, continue to operate as normal.
Worst affected among the chains is F&B, with 14 sites shutting, after TRG found performance had suffereddueto “insufficient focus on value, unsuccessful menu development and poor operational execution”.
News of the closures came as the company reported pre-tax losses of £22.5million for the first half of2016, comparedwith profits of nearly £37million a year ago, after it took a hit from a £59.1million exceptional charge linked to prospective store closures and writedowns.
It is thought the store closures will affect up to 1,000 jobs, although TRG insisted the vast majority of staff were likely to take advantageof “plentyofopportunities” at other outlets.
TRG opened seven new restaurants and pubs during the first half of the year and expects up to 21 more sites tohave started trading by the end of 2016.
First half like- for- like sales fell 3.9% as the group, which has issued a string of profit warnings, flagged a “challenging trading period”.
Chairman Debbie Hewitt added: “The board has moved quickly to undertake a review of the operating strategy and we now have clarity on the issues facing our leisure brands, particularly Frankie & Benny’s.
“The brand remains relevant and popular and we are confident that improved performancewillbe achieved by being more customer- focused and data-driven, and through better operational execution.”
Earlier this month, the company ousted chief executiveDannyBreithaupt, replacing him with former Paddy Power boss Andy McCue.
“Performance will be improved by being more customerfocused”