For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails
Sign up to our free breaking news emails
Sign up to our free breaking news emails
The pizza chain Franco Manca is poised to close around 16 of its restaurants, in a restructuring move anticipated to affect around 225 jobs.
The decision by parent group The Fulham Shore, which also operates The Real Greek chain, has been attributed partly to “disproportionately high” UK taxes and a lack of business rates relief for restaurants.
The company stated that a “minority of its sites” were “no longer sustainable”.
While the specific locations among Franco Manca’s roughly 70 outlets have not yet been disclosed, Fulham Shore boss Marcel Khan confirmed that a Company Voluntary Arrangement (CVA) restructuring process will be launched for the pizza 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 the Japanese restaurant group Toridoll, with backing from investment firm Capdesia, in 2023 for £93.4m.
Franco Manca is set to shut around 16 restaurants as part of a CVA restructuring (Fulham Shore)
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.”
