Franco Manca is set to close around 16 of its UK restaurants, in a move that is expected to put around 225 jobs at risk.
Franco Manca owner Fulham Shore said the decision came as a result of rising costs, including “disproportionately high” UK taxes and insufficient business rates relief.
A company voluntary arrangement (CVA) restructuring process is set to be launched, as confirmed by Fulham Shore boss Marcel Khan.
The pizza chain currently operates around 70 UK sites, however Fulham Shore said a “minority proportion” of its restaurants were “no longer sustainable in this cost environment”. The specific locations for any closures have not yet been revealed.
“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,” Khan said.
“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.
“As a result of these external cost pressures, we have to make sure we are putting our business on a sustainable footing for long-term growth and development.”
He added: “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.”
Last month, Fulham Shore, which also owns The Real Greek, appointed advisors to undertake a strategic review of both restaurant brands.
Fulham Shore’s review of future plans for The Real Greek, which operates 28 UK sites, is understood to be ongoing.
No comments yet