Franco Manca is to close 16 of its restaurants as part of a restructuring, placing more than 200 jobs in jeopardy. The pizza chain's parent group, Fulham Shore, which also owns The Real Greek, said a minority of its sites were "no longer sustainable" in the current cost environment.
The company has not disclosed which of Franco Manca's roughly 70 restaurants will be affected. Chief executive Marcel Khan confirmed that a company voluntary arrangement (CVA) restructuring process would be launched for the Franco Manca business. It comes two months after advisers were hired to examine strategic options, including a potential sale or restructure.
Mr Khan blamed "disproportionately high" UK taxes, a lack of business rates relief for restaurants, and significant increases in national insurance and the national living wage. He said: "Even restaurant businesses that are doing all the right things from a customer and operational perspective are not immune to widely publicised pressures impacting the hospitality industry."
He added that the decision had been taken to put the business on a sustainable footing for long-term growth, and that affected team members would be supported throughout the process. Fulham Shore was acquired by Japanese restaurant group Toridoll, with backing from investment firm Capdesia, in 2023 for £93.4 million.
The company said it continues to review future options for the 28-strong Real Greek chain. The restructuring will see a minority proportion of Franco Manca restaurants close where they are no longer sustainable in this cost environment.
