Auto Amazon Links: No products found.
The Real Greek restaurant group has narrowly avoided going under after an acquisition deal by the owners of Cote Brasserie. Karali Group, which completed the purchase of the Cote Brasserie chain late last year, has agreed to acquire 19 of the 28 Real Greek locations, preventing the Mediterranean dining chain from entering administration.
Earlier, The Real Greek’s parent company, Fulham Shore, had indicated plans to appoint administrators amid financial difficulties. This move raised concerns that the chain would be forced to shut down entirely. However, the intervention by Karali Group means that 358 jobs out of 509 will be retained, providing significant relief to employees and stakeholders.
The Real Greek is owned by Japanese restaurant group Toridoll, which also controls Fulham Shore. Toridoll had expressed that The Real Greek’s struggles were greater than that of Franco Manca—another Fulham Shore-owned business—primarily due to challenging economic conditions. Several outlets of The Real Greek are still set to close, including locations in Spitalfields, Westfield London, Dulwich Village, Bristol, Strand, Solihull, Gloucester Quays, Glasgow, and Edinburgh.
Marcel Khan, chief executive of Fulham Shore, emphasized the company’s efforts to improve since the acquisition by Toridoll in 2023, noting early signs of positive trading momentum. Nevertheless, Khan highlighted ongoing difficulties facing the hospitality industry, such as high inflation, rising costs, and an unfavorable fiscal environment compared with international competitors. The restructuring through the pre-pack administration and sale to Karali Group aims to stabilize The Real Greek, allowing Fulham Shore to concentrate on expanding Franco Manca’s growth prospects. Founded in London in 1999, The Real Greek is known for its aim to recreate an authentic Greek tavern experience, with nearly half its venues based in London and the remainder spread throughout England and Scotland. The chain’s most recent financial results recorded an operating loss of £3.6 million.
The challenges for The Real Greek mirror broader concerns within the UK hospitality sector, where rising business rates, increasing energy and food prices, and heightened labor costs have exerted considerable pressure. Toridoll acknowledged these difficulties, stating that recent high inflation driven by energy, food, and minimum wage increases has created a tougher operating environment than initially anticipated. Fulham Shore also announced a separate restructuring plan two weeks ago affecting 16 of its Franco Manca locations, citing similar financial strains related to UK taxation and operational costs. Marcel Khan noted that even well-managed restaurant operations are vulnerable to the widespread challenges currently impacting the hospitality industry
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found.