Store closures update: Popular high street restaurant chain to shut 16 sites with 225 jobs at risk

Franco Manca is preparing to close roughly 16 of its pizza restaurants as part of a company voluntary arrangement, with approximately 225 workers facing potential job losses.

The restructuring will affect a minority of the chain's estate, which currently numbers around 70 sites across the country.

The Fulham Shore, which owns the sourdough pizza brand, has not revealed which locations will shut their doors.

This announcement follows a two-month period during which company bosses brought in advisers to explore various strategic options, including a possible sale or restructuring of the business.

The Fulham Shore pointed to what it described as "disproportionately high" UK taxes and the absence of business rates relief for restaurants as key factors behind the closures.

The parent company, which also operates The Real Greek chain, said recent rises in national insurance contributions and the national living wage had added to mounting cost pressures.

Marcel Khan, chief executive of The Fulham Shore, said the UK's VAT rates for restaurants were significantly higher compared with European counterparts.

He stated that even hospitality businesses performing well operationally and with customers were struggling against these widely reported industry challenges.

Mr Khan said: "As a result of these external cost pressures, we have to make sure that we are putting our business on a sustainable footing for long-term growth and development."

He added: "This is why we have taken the difficult decision to undertake a CVA for Franco Manca, which will see a minority proportion of our restaurants closing where they are no longer sustainable in this cost environment."

The chief executive expressed sadness over the closures and pledged to help those losing their jobs.

He said: "We are deeply saddened by the closures of a minority proportion of our restaurants, and will support our affected team members throughout this process in every way that we can."

The Fulham Shore was acquired by Japanese restaurant group Toridoll, backed by investment firm Capdesia, in a £93.4 million deal in 2023. The company is understood to be continuing its review of options for The Real Greek, which operates 28 restaurants.

Franco Manca's troubles reflect broader difficulties facing the UK casual dining sector.

Italian wine bar chain Veeno Bars formally appointed administrators on 8 April to protect itself from collapse.

Founder, Nino Caruso said: "Like many businesses in the UK casual dining sector, we have faced a combination of well-documented market pressures in recent years, including rising operating costs and challenges within the property landscape."

He added: "This process allows us to address those factors, realign the business, and ensure a more sustainable foundation for the future."

Veeno was founded in Manchester in 2013 by Italian entrepreneurs Nino Caruso and Andrea Zecchino, with the aim of introducing authentic "Aperitivo" culture to UK customers.

The brand distinguished itself within the hospitality sector through its wine selection, which is sourced directly from the founders’ family vineyard, Caruso & Minini, located in Marsala, Sicily.

Its direct sourcing model enabled the business to offer wines not typically available through standard retail channels.