The Italian restaurant chain Prezzo are to close 46 sites and 810 staff are at risk of redundancy after the firm has been hit by soaring inflation which has led to higher food costs and energy.
Last month soaring food inflation hit a 45-year high and Prezzo saw a whopping 40% increase in the cost of spaghetti, with a 28% price hike for pizza sauce and for dough balls the cost went up by 15%.
Utility bills have more than doubled over the past year and the Italian restaurant chain said they have also been hit with double-digit wage inflation.
On Monday morning Prezzo staff learned of the planned closures of 46 restaurants after a consultation was launched and the company said that they hope to redeploy “as many staff internally possible.”
Dean Challenger, chief executive of Prezzo, said, “The last three years have been some of the hardest times I have ever seen for the high street and I’m extremely proud of the way our colleagues have retained Prezzo’s position as an appealing, trusted, great value food and drink experience.
“But the reality is that the cost-of-living crisis, the changing face of the high street and soaring inflation has made it impossible to keep all our restaurants operating profitably.
“We believe the tough decisions we are making today will ensure Prezzo can continue serving communities with high-quality, accessible Italian-inspired meals for many more years to come.”