Shares in Fulham Shore the owner of Franco Manca and The Real Greek restaurants have fallen.
The company released an update ahead of its AGM that said there had been “a slowdown in trade, primarily from our restaurants in London suburbs” and an increase in costs during July and August.
The announcement caused shares to plummet 22 per cent after it also warned that profits would be lower than expected.
“We believe this is a sector-wide trading pattern and not unique to our brands,” the company said.
The group said this slowdown in revenue was despite hitting targets for the first quarter of this financial year.
They added that “In addition to this slowdown in revenue growth, as previously indicated, the Group is experiencing a higher fixed cost element to support its increased level of operations, especially in The Real Greek.”
The group has opened seven Franco Manca pizzeria’s in the UK, one franchise in Italy and three The Real Greek restaurants, taking its restaurant portfolio to 56 sites.
Two more Franco Manca’s are in development in London and in Bristol which are due to open later in autumn.
Fulham Shore also announced in its release that it plans to sell The Bukowski Grill in Soho, the franchise and site in D’Arblay Street, though no further details were released and said a further announcement would be made in due course.