LEGAL | Staff Reporter, UK

Franco Manca owner posts £15.2m EBITDA

It also expects to be ready for future changes in government regulations.

Fulham Shore, the owner of the Franco Manca and The Real Greek restaurant chains, revealed a turnover of £68.6 million and EBITDA increasing to £15.2 million.

The business says it has “emerged in robust shape” during this period and would have “exceeded market expectations” if not for the coronavirus.

Currently, it has 68 of its 70 restaurants fully open and recently opened a new Franco Manca pizzeria last September.

Fulham Shore also said it got a boost from the government’s Eat Out To Help scheme, with with revenues up on the previous year.

“We are confident that this, combined with our cash balances, will see us emerge from this period as a successful survivor in an albeit reduced UK restaurant sector,” it said in a statement.

“With rents likely to be falling for the next few years and more sites becoming available, the future looks promising for Fulham Shore.”

Fulham Shore also lambasted rivals, saying that the restaurant market in the UK was heading for a correction well before the public health crisis.

“There were too many restaurant businesses with owners and managers convinced they could swim like Mark Spitz, but which were actually being kept afloat by some badly made rubber rings and various leaky flotation devices," it said.

"They were driven to expand by historically cheap debt, supposed high exit multiples on sale of the businesses and run by management teams who had never experienced either a downturn in the UK economy or an oversupply in the restaurant sector."

"Successful restaurant businesses will continue to be those offering reasonably priced food, made with quality ingredients, served by motivated teams,” it added.

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