A FAMILY restaurant chain owner has announced plans to close 18 branches.
Tasty, the owner of Wildwood, said it will shutter the sites as part of major restructuring plans.
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Tasty, which also runs locations under Dim T brand, said it plans to exit around 20 loss-making restaurants after a “challenging” start to the year.
Under the plans, the group would shut 18 branches, with two of these sites already closed to diners.
Tasty currently operates 43 Wildwoods and six Dim-T pan-Asian restaurants, as well as two non-trading sites and three sub-let venues.
The hospitality group said on Tuesday its financial performance “continues to be inhibited by a tail of underperforming sites”.
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A spokesperson said: “The use of a restructuring plan is considered the most effective means to reorganise the group to return it to profitability and secure its long-term future which should change the financial viability, profitability profile and long-term prospects of the group.”
Tasty said it expects to operate around 30 restaurants by the end of the current year.
But, it hasn’t yet confirmed the locations of the sites earmarked for closure or when they could shut.
Here is the full list of Wildwood sites at risk:
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- Wildwood Epping
- Wildwood Bicester
- Wildwood Braintree
- Wildwood Maidstone
- Wildwood Taunton
- Wildwood Market Harborough
- Wildwood Crawley
- Wildwood Skipton
- Wildwood Lincoln
- Wildwood Billericay
- Wildwood Birmingham
- Wildwood Salisbury
- Wildwood Whiteley
- Wildwood Peterborough
- Wildwood Kingston
- Wildwood Canterbury
- Wildwood Gerrards Cross
- Wildwood Newmarket
- Wildwood Bournemouth
- Wildwood Chichester
- Wildwood Ely
- Wildwood Rushden Lakes
- Wildwood York
- Wildwood Llandudno
- Wildwood Plymouth / Royal William Yard
- Wildwood Hornchurch
- Wildwood Cambridge
- Wildwood Wantage
- Wildwood Chelmsford
- Wildwood Brentwood
- Wildwood Didcot
- Wildwood Hereford
- Wildwood Stratford-Upon-Avon
- Wildwood Port Solent
- Wildwood Telford
- Wildwood Hinckley
- Wildwood Cheam
- Wildwood Nottingham
- Wildwood Liverpool
- Wildwood Seven Dials
- Wildwood Northwich
- Wildwood Covent Garden
We visit the ‘poshest’ Wetherspoons in the country
And here is the full list of Dim T sites:
- Dim T – Charlotte Street, London
- Dim T – Hampstead, London
- Dim T – Victoria, London
- Dim T – Whiteley, Hampshire
- Dim T – Winchester, Hampshire
Tasty also announced it will enter into a new £750,000 loan agreement with Bet365 shareholder Will Roseff in order to fund the restructuring.
Bosses said they expect the plan will improve earnings by up to £2.1million by the 2025 financial year, largely through the restaurant closures and other cost savings.
The proposals are to be put to Tasty’s creditors before a court hearing expected later this month.
On Tuesday, Tasty added that it expects to confirm revenues of around £46.9million for 2023, up from £44million in 2022.
It also trimmed its earnings loss to £900,000 last year from a £2.7million loss a year earlier.
The group says it has made “reasonable progress” so far this year “despite difficult recent trading conditions”.
What else is happening in the hospitality industry?
Tasty isn’t the only chain which has struggled in recent times.
Food and drink chains in general have been suffering in recent months as the cost of living has led to fewer people spending on eating out.
Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.
Pizza giant Papa Johns is shutting down 43 of its stores by next month.
Papa Johns currently operates 524 locations in the UK, which are a mixture of owned stores and franchises.
Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny’s closing branches.
In January 2023, Byron Burger fell into administration, with owners saying it would result in the loss of over 200 jobs.
Italian dining chain Prezzo revealed plans to shut 46 restaurants back in April due to soaring energy and food costs, putting 810 jobs at risk.
In January 2024 many restaurants just did not reopen after Christmas.
Marco Pierre White’s restaurant Mr White’s Steak, Pizza and Gin House, located in London’s iconic West End, closed indefinitely.
Meanwhile, Marco Pierre White‘s Steakhouse Bar & Grill in Cardiff also permanently shut.
Ex-masterchef finalist Tony Rodd was also forced to close his restaurant Copper & Ink earlier this month after he reportedly received a “terrifying” £80,000 energy bill.
Also, other chains have been forced to put expansion plans on hold.
Hostmore, the owner of restaurant chain TGI Fridays and 63rd+1st has said that it will no longer open any new restaurants until at least 2025, after confirming a drop in earnings.
Caffè Nero, which launched in the UK in 1997, pulled down the shutters on half a dozen sites in 2023 in a blow for caffeine lovers.
It is not just the hospitality industry, high street retailers have been shutting at an alarming rate.
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Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic, Snug and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
Meanwhile, a major coffee chain with 2,000 branches is pulling down the shutters on an “exceptional” store in days.
Plus, Superdry is set to close a branch in Dundee this month in another blow to the British high street.
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