Wagamama owner The Restaurant Group is considering closing more Frankie and Benny’s and Chiquito sites as it focuses on the pan-Asia chain.
The company said sales in its leisure division, which includes Frankie & Benny’s, are down 4 per cent this year.
By contrast, Wagamama sales increased 5 per cent while they are up 9 per cent at the pub business, which owns Brunning & Price.
Closures: The Restaurant Group said sales in its leisure division – which includes Frankie & Benny’s – are down 4% so far this year
The company, which is known as TRG and led by the former HBOS bank chief Andy Hornby, said plans to close 35 leisure sites by the end of the financial year were on track.
And it warned that more outlets may follow.
Meanwhile, TRG plans to open seven or eight Wagamamas a year from 2024.
The four branches it recently opened are trading ahead of expectations, and sales at the noodle chain outperformed the market. Shares rose 0.5 per cent, or 0.2p, to 39.2p yesterday.
Casual dining brands have faced significant pressure from sharp rises in food costs and energy bills as customers face higher household bills.
And Hornby, who led HBOS to the brink of collapse in the 2007-09 financial crisis, has come under intense pressure from disgruntled shareholders.
Activist investors Oasis Management and Irenic Capital Management want change.
Hong Kong-based Oasis has threatened to push for his removal unless things improve.
The chief executive also suffered an annual meeting revolt in May when 45.5 per cent of shareholders voted against his £792,000 pay package.
