Home Business News Wagamama owner set to close restaurants amid the cost of living

Wagamama owner set to close restaurants amid the cost of living

by LLB Finance Reporter
8th Mar 23 11:53 am

The owner of Wagamama and Frankie & Benny’s has announced that they are to close dozens of restaurants.

The company reported that they had fallen into the red in 2022 and will cut the estate by around 30% closing between 75 and 85 sites by next year.

The company has also named Frankie & Benny’s and Chiquito after coming under pressure from investors in recent months.

The sites which will be closed are all making a loss and as the leases expire over the next three years they will be shut.

Inflation, high energy bills the rising costs of wages and ingredients have contributed to a reduction in profits.

They reported that on a statutory basis pre-tax profits of £20 million were wiped out and total sales of £883 million compared to £636.6 million the previous year when they made profits of £11.8 million during the pandemic.

Chief executive Andy Hornby said, “We’ve delivered a strong operating performance for the year in a market which has continued to pose a number of headwinds for casual dining operators.

“Current trading has been very encouraging to the great credit of our teams who continue to ensure our customers receive the best experience possible.

“We have a clear plan to increase… margins over the next three years and deliver significant value for all our stakeholders.”

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