The entire staff of Carluccio’s is facing a pay cut as the company fights to stay afloat amid the coronavirus crisis.

In a letter sent to employees yesterday, seen by BigHospitality, CEO Mark Jones said he understood the news would come as a “terrible shock”.

He wrote: “The rapid decline in sales and then the closure of our restaurants has exhausted the company’s cash resources, and we have been struggling to make the payroll payment this month.”

Staff will receive 50% of the March wage costs they are due following an injection of cash from Carluccio’s owner, the Dubai-based Jagtiani Foundation.

Holiday pay and tronc and service charge payments have also been reduced to 50% of the total.

The executive team has taken an even larger pay cut, and Jones will not take any salary in March.

The team is now looking to furlough staff and access the Government’s coronavirus job retention scheme, which will pay 80% of employee’s salaries for the next three months.

Jones says this course could give Carluccio’s a “fighting chance” to survive long-term.

In a statement, Jones said: “The entire restaurant sector is facing unprecedented challenges and Carluccio’s is no exception. These are difficult and very challenging times for our team, but we are doing absolutely everything we can and the Carluccio’s board is in constant talks with its stakeholders to determine a way forward.”