Franco Manca and The Real Greek owner Fulham Shore has appointed advisors to undertake a strategic review of the restaurant brands.
Financial advisory firm Alvarez & Marsal will carry out the review, which is thought to have begun this week. It is understood this process could include a restructure of the business or a sale of all or portions of the company, Propel Hospitality reported.
However, Fulham Shore CEO Marcel Khan said “there is no fixed timetable for this review, and no certainty that it will result in any particular outcome”. He added that any decisions would be “taken carefully, with a clear focus on long-term value creation and sustainability”.
Fulham Shore currently operates 70 Franco Manca restaurants and 28 The Real Greek sites. While Khan explained that sales performance at both brands “remains relatively robust”, he said the current macroeconomic environment “continues to place pressure on parts of the casual dining sector”.
He added that the review looks to “ensure both brands are on the strongest possible footing to realise their long-term potential”.
In the year to 31 March 2024, the latest available accounts for the business, Franco Manca reported a 9% increase in turnover year on year to £70m, up from £64.5m in the year prior. However, headline EBITDA fell to £5.9m, down from £7.2m in 2023.
Over the same period, turnover at The Real Greek increased to £37.1m from £35.9m in the previous year, while headline EBITDA fell to £1.2m, a decline from £3m the previous year.
It comes amid a challenging time for the hospitality sector as changes to employer NICs and other increased employment costs have piled pressure on many businesses.
In November, the Treasury confirmed the national living wage would rise by 50p to £12.71 an hour from April 2026. The national minimum wage for 18 to 20-year-olds will rise by 85p to £10.85 an hour. For 16 and 17-year-olds and those on apprenticeships, it will increase from £7.55 to £8 an hour.
At the time, UKHospitality warned of an additional £1.4bn in costs for the sector as a result of these increases.
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