Restaurant groups loss-making up 75% in just a year: research
Restaurant chains have been dealing with oversaturation in the market as well as rising costs.
In a research by UHY, it shows that pressures of competing with numerous similar ‘fast casual’ restaurants in an overcrowded high street are a major driver of many large restaurant groups registering losses over the past year.
The research comes on the back of the high-profile struggles of several major restaurant chains in recent weeks, including: Jamie’s Italian, started by Jamie Oliver, which has closed 12 branches as part of a Company Voluntary Arrangement (CVA) to restructure its £71.5m debt; Byron, the burger chain, which may close up to 20 of its 67 branches following a period of paying reduced rent; Prezzo, the Italian chain, which is expected to close some of its 300 branches as part of a restructuring; Strada, another Italian chain, which closed 11 branches over the festive period; Barbecoa, another Jamie Oliver chain, which entered administration in mid-February; and EAT, the sandwich chain, which was rumoured in early February to be considering closing some of its 100 branches.
