Little Chefs: What happened to roadside diner chain

Little Chefs: What happened to roadside diner chain
Little Chefs: What happened to roadside diner chain

Little Chef, a once-popular restaurant chain across the UK, has disappeared from the roadsides that it once dominated. The company began in 1958 when Peter Merchant and Sam Alper decided to create their version of popular American roadside diners in the UK. As car ownership and the UK road network expanded, Little Chef became more and more successful. In the 1990s it was bought by Granada and its numbers hit a peak of 439. However, when Permira bought it from Granada and put it up for sale, Lawrence Wosskow and Simon Heath bought the chain.

Wosskow and Heath sold the restaurant buildings and leased them back from their new owners, making millions to invest in refurbishing the businesses. At this point, customers were less keen to stop for a sit-down meal, so Little Chef added dozens of coffee and sandwich outlets alongside existing Burger King franchises. This move aimed to appeal to people on the go, and price cuts also helped to bring customers back.

Despite these efforts, Little Chef struggled. Bad summer weather during the peak trading period in 2006, alongside Wosskow’s ill-health, saw Little Chef enter administration less than 18 months after he bought it. However, the restaurant chain was rescued by Rcapital, who brought celebrity chef Heston Blumenthal in to revamp the menu. Although Blumenthal’s new menu received criticism, Rcapital continued to refurbish restaurants while closing others. Ultimately, the Kuwaiti company Kout Food Group bought Little Chef in 2013 and retained the name, but sold off its remaining restaurant buildings to Euro Garages in 2017. Shortly after, Little Chef disappeared from the UK’s roadsides.

Although some former employees feel that Little Chef could have been saved, the brand ultimately failed to stay relevant in the face of new competition. The chain’s decline began during the period when the owners were keen to reduce costs and maximise profits rather than rejuvenate the brand. While there were efforts to rebrand and modernise in the years leading up to its final demise, these were not enough to keep the chain alive

Read the full article from The BBC here: Read More