A FAMILY favourite restaurant chain is to shut 23 branches this month following a string of closures.
The Restaurant Group (TRG) is shutting 23 of its loss-making restaurants by the end of May to help reduce costs.
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It comes after the company said in March that it would close 35 of its Frankie and Benny’s and Chiquito restaurants in order to boost profits.
The group, which currently runs 410 venues, added that it will now speed up the closure process, with 23 sites due to shut by the end of May after it negotiated to exit a number of contracts ahead of schedule.
The Sun previously spotted three Frankie and Benny’s restaurants listed for sale with Savills.
We’ve asked the group to provide a full list of restaurants affected and will update the story once we hear back.
Around 12 pubs and restaurants have closed every single day since March 2022, according to consumer research brands CGA by NIQ and AlixPartners.
TRG expects to save £5million a year by closing its loss-making restaurants.
Shares in the company, which also owns the Wagamama brand, jumped on Tuesday morning after it hailed “good progress” on recent cost-cutting efforts.
TRG revealed that like-for-like sales grew by 2% at Wagamama over the first quarter of 2023, with a 5% rise for its pub arm and 37% growth across its concessions, amid a recovery in airport passenger numbers.
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Meanwhile, Wagamama sales grew 9% over the four weeks to April 30, while the sales decline at its leisure sites slowed to 1%.
The group added that “favourable” property market conditions are creating further opportunities for new Wagamama restaurants on good rent terms.
TRG plans to accelerate its opening plans for the pan-Asian chain, with up to eight sites due to open next year, from previous plans for five sites.
The group had previously closed hundreds of its restaurants as a result of the coronavirus pandemic.
At least 61 Chiquito restaurants were closed in 2020, with the loss of around 1,500 jobs.
It went on to close 125 of its other restaurants including a raft of Frankie & Benny’s locations.
It also completely shut down its Food and Fuel chain of pubs in London.
However, TRG isn’t the only company closing restaurants.
Prezzo, the Italian restaurant chain is closing 46 branches after being hit hard by soaring energy and food costs.
The shake-up will leave the hospitality chain with 97 restaurants and about 2,000 staff.
The restaurant group said costs have leapt over the past year, with its utility bills more than doubling.
It has also been impacted by soaring food inflation, which hit a 45-year high in March.
In December 2022, pub chain Wetherspoons announced it would be closing a total of 39 pubs after being hit by soaring inflation.
Plus burger chain Byron Burger fell into administration, immediately closing nine of its branches.
