Restaurant chain Franco Manca is set to shut around 16 restaurants as part of a restructuring which will hit around 225 jobs.
Parent group The Fulham Shore, which also runs The Real Greek chain, partly blamed “disproportionately high” UK taxes and a lack of business rates relief for restaurants as it said a minority of its sites were “no longer sustainable”.
The company has not disclosed which of Franco Manca’s roughly 70 restaurants will be impacted.
Fulham Shore boss Marcel Khan confirmed that it will launch a company voluntary arrangement (CVA) restructuring process for the Franco Manca business.
It comes two months after bosses hired advisers to look at strategic options including a potential sale or a restructure.
It is understood that Fulham Shore is continuing to review future options for the 28-strong Real Greek chain.
Fulham Shore was bought by Japanese restaurant group Toridoll, with backing from investment firm Capdesia, in 2023 for £93.4 million.
Mr Khan, chief executive of Fulham Shore, said: “Even restaurant businesses that are doing all the right things from a customer and operational perspective are not immune to widely publicised pressures impacting the hospitality industry.
“This includes significant increases in national insurance and the national living wage in recent history, as well as a lack of business rates relief for the restaurant sector and disproportionately high VAT in the UK compared with Europe.”
He added: “As a result of these external cost pressures, we have to make sure that we are putting our business on a sustainable footing for long-term growth and development.
“This is why we have taken the difficult decision to undertake a CVA for Franco Manca, which will see a minority proportion of our restaurants closing where they are no longer sustainable in this cost environment.
“We are deeply saddened by the closures of a minority proportion of our restaurants, and will support our affected team members throughout this process in every way that we can.”
