Franco Manca, the popular pizza chain, has announced the closure of 16 restaurants as part of a major restructuring, putting up to 225 jobs at risk. The privately-owned group blamed 'disproportionately high' taxes, including VAT rates, national insurance increases, and minimum wage costs, for the decision.
The closures will affect branches across the UK, with half in London. Other locations at risk include Bishop's Stortford, Bromley, Cheltenham, Didsbury, Glasgow, Hove, Lincoln, and Plymouth. The Cardiff branch is not affected.
Franco Manca, owned by private equity firm Fulham Shore, will enter a Company Voluntary Arrangement (CVA) to negotiate with creditors. Chief executive Marcel Khan said no restaurants are 'immune' to the pressures facing the hospitality sector, citing increased costs and a lack of targeted business rates relief for restaurants.
The announcement adds to a growing list of UK hospitality businesses forced to scale back due to tax burdens. Last week, Leon founder John Vincent accused the government of 'killing' the sector, while a government spokesperson defended its support package for hospitality.
