FRANKIE and Benny’s is closing 18 loss-making restaurants by the end of this month.
The Restaurant Group (TRG), which owns Frankie and Benny’s expects to save £5million a year by closing its loss-making restaurants.
GettyThe Restaurant Group is closing 18 Frankie and Benny’s restaurants in May[/caption]
It comes after the company said in March that it would close 35 of its Frankie and Benny’s and Chiquito restaurants in order to boost profits.
But the group confirmed yesterday, that it had now sped up these plans and 23 sites are due to shut by the end of May.
TRG which currently runs 410 venues has expedited its closure plans after it negotiated to exit a number of contracts ahead of schedule.
In total, 18 Frankie and Benny’s, four Chiquitos and a single Firejacks will shut by the end of May.
Confirmation of the closures comes after The Sun previously spotted three Frankie and Benny’s restaurants listed for sale with Savills.
The 18 Frankie and Benny’s set for closures are located in:
AberdeenBirmingham – PlazaBlackpoolCarmarthenChesterfieldEastleighExeter – Marsh BartonFelthamLeedsLentonLivingstonNorwich – RiversidePeterboroughPeterborough – Pavilions WestStreet – Clarks VillageTamworthTaplowTunbridge Wells
Four Chiquitos restaurants will also close in:
LeedsLentonPeterborough – Pavilions WestRochester
A single Firejacks located in Basildon will also close its doors to customers by the end of the month.
A spokesperson told The Sun: “We announced a review of our leisure estate in March and made the difficult decision to exit some of our Frankie and Benny’s and Chiquito sites.
“We are working closely with our impacted teams and will look to redeploy colleagues to neighbouring sites across our wider estate wherever possible.”
Around 12 pubs and restaurants have closed every single day since March 2022, according to consumer research brands CGA by NIQ and AlixPartners.
Shares in TRG, which also owns the Wagamama brand, jumped on Tuesday (May 2) after it hailed “good progress” on recent cost-cutting efforts.
TRG revealed that like-for-like sales grew by 2% at Wagamama over the first quarter of 2023, with a 5% rise for its pub arm and 37% growth across its concessions, amid a recovery in airport passenger numbers.
Meanwhile, Wagamama sales grew 9% over the four weeks to April 30, while the sales decline at its leisure sites slowed to 1%.
The group added that “favourable” property market conditions are creating further opportunities for new Wagamama restaurants on good rent terms.
TRG plans to accelerate its opening plans for the pan-Asian chain, with up to eight sites due to open next year, from previous plans for five sites.
The group had previously closed hundreds of its restaurants as a result of the coronavirus pandemic.
However, TRG isn’t the only company closing restaurants.
Prezzo, the Italian restaurant chain is closing 46 branches after being hit hard by soaring energy and food costs.
In December 2022, pub chain Wetherspoons announced it would be closing a total of 39 pubs after being hit by soaring inflation.
Plus burger chain Byron Burger fell into administration, immediately closing nine of its branches.