Frankie & Benny’s owner to close 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.
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.
TRG closed three Chiquito in Wales in 2016, in Cardiff’s Brewery Quarter and Red Dragon Centre and Swansea’s Salubrious Place, but has three sites remaining, in Newport, Llantrisant and Broughton.
There are 15 Frankie and Benny’s outlets across Wales, with three in Cardiff, two in Swansea and Wrexham. and one each in Bridgend, Broughton, Llanelli, Merthyr Tydfil, Nantgarw, Newport, Carmarthen, and Llantrisant.
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.
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.
The move will take its leisure portfolio down to 260-275 sites by the end of 2021, from 350.
TRG confirmed the closure plans as it reported like-for-like sales growth of 2.7% for the year to December.
The group saw total sales soar 56.4% to £1.07bn as it was buoyed by its £559m 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% increase in like-for-like sales over the period.
The group, which has 650 sites in total, slipped to a pre-tax loss of £37.3m for the year, from a £13.9m profit 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 outperforming 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.”