Restaurant Group in talks over leisure restructure

The Restaurant Group has confirmed it is in discussions with landlords regarding “potential restructuring options” of its leisure estate.

The part of the business, which is dominated by Frankie & Benny’s, has faced major challenges even before coronavirus, with the group saying it would exit 50% of sites in this division.

Chiquito has been placed into administration, with the closure of 61 sites, while reports last week suggested a further 100-120 sites would close in the division, which also includes Garfunkel’s and Coast to Coast.

TRG’s Wagamama, Airport Concessions and Pub operations divisions are not affected by these discussions, the group said in a statement.

A spokesperson said: “As is widely understood our industry is facing exceptional challenges in what is an unprecedented operating environment. The casual dining sector was already facing significant challenges prior to the onset of Covid-19, with overcapacity and significant cost pressures.

“In order to meet both the immediate challenges and to build a post-lockdown business with a sustainable future, we are in discussions with our landlords regarding potential restructuring options for our Leisure estate. Our Wagamama, Airport Concessions and Pub operations are not affected by these discussions.

“A further announcement will be made as and when appropriate.”