UK Mediterranean Restaurant Chain Faces Potential Closure of Half Its Locations
Major UK restaurant chain could shut HALF of locations after sister brand's closures
Birmingham Live
Image: Birmingham Live
A major Mediterranean restaurant chain in the UK, The Real Greek, may close half of its locations as its owner, Fulham Shore, engages in talks with Karali Group to salvage some restaurants. The situation follows the closure of 16 branches of its sister brand, Franco Manca, due to rising operational costs.
- 01The Real Greek may close half of its 28 locations in the UK.
- 02Karali Group is in advanced talks to acquire 10 to 15 of The Real Greek restaurants.
- 03Franco Manca, another brand under Fulham Shore, is shutting down 16 locations, risking 225 jobs.
- 04External cost pressures are impacting the hospitality industry, affecting profitability.
- 05Operational costs, rather than demand, are driving the closures.
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The Real Greek, a popular Mediterranean restaurant chain in the UK, is facing potential closures of up to 14 out of 28 locations as its parent company, Fulham Shore, seeks to negotiate a rescue deal with the Karali Group. Reports indicate that Karali is in advanced discussions to acquire between 10 to 15 of The Real Greek's restaurants. This comes on the heels of its sister brand, Franco Manca, announcing the closure of 16 locations through a company voluntary agreement (CVA), which could jeopardize approximately 225 jobs. The chief executive of Fulham Shore, Marcel Khan, attributed the closures to rising external cost pressures affecting the hospitality sector. Industry experts suggest that the closures are more a result of increased operational costs than a decline in consumer demand. Food service consultant Peter Backman noted that while sourdough bread is perceived as a higher-value product, it has also contributed to rising operational expenses for restaurants. The ongoing financial strain on the hospitality industry highlights the challenges faced by operators in maintaining profitability.
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The closures could significantly affect employees and local economies where the restaurants operate, leading to job losses and reduced consumer choices.
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