Pizza chain Franco Manca is to close around 16 restaurants in the UK as part of a major restructuring that will place approximately 225 jobs at risk, amid mounting pressure from taxes and rising operating costs across the hospitality sector.
Parent company The Fulham Shore, which also owns The Real Greek, said a minority of its sites had become “no longer sustainable,” blaming “disproportionately high” UK taxation and the absence of business rates relief for restaurants.
The closures will be carried out through a company voluntary arrangement (CVA), a legal restructuring mechanism that allows firms to shut underperforming sites while attempting to preserve the wider business.
The group has not confirmed which of its roughly 70 Franco Manca restaurants will be affected, creating uncertainty for staff and landlords across its estate.
Chief executive Marcel Khan confirmed the restructuring plan following a strategic review, during which the company explored options, including a potential sale.
The business, which was acquired in 2023 by Japanese operator Toridoll, backed by investment firm Capdesia, for £93.4 million, has also been assessing the future of its 28-strong Real Greek chain.
Industry sources said the move reflects broader strain across the UK casual dining market, where higher labour costs, persistent inflation, and elevated property taxes have squeezed margins for mid-market operators.
Analysts warned that further consolidation could follow if relief on business rates and operating costs does not improve, with weaker sites increasingly vulnerable to closure.
Khan, chief executive of Fulham Shore, said: “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.
“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.”
He added: “As a result of these external cost pressures, we have to make sure that we are putting our business on a sustainable footing for long-term growth and development.
“This is why we have taken the difficult decision to undertake a CVA for Franco Manca, which will see a minority proportion of our restaurants closing where they are no longer sustainable in this cost environment.
“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.”
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