Owner of Frankie and Benny's, Chiquito and Wagamama plans to close 35 restaurants as costs rise

The owner of restaurant chains Frankie and Benny's and Chiquito has announced that 35 UK stores will shut in a bid to stem growing losses.

The Restaurant Group (TRG) says it will close its worst performing sites over the next two years as leases on the premises run out.

The company, which also owns Wagamama, is seeking to cut into its hefty £185 million debt.

There are two Frankie and Benny's in Peterborough. One of the restaurants is at the Boongate Retail Park and the other in Cygnet Road, Hampton, which is close to its Chiquito restaurant at Cygnet Park, Phorpres Way, in Hampton. The group also has a Wagamama restaurant in Long Causeway.

No details of the UK branches which are being affected have been released but it is understood the axe will fall on loss making Frankie and Benny’s and the ‘Tex Mex’ Chiquito outlets.

TRG has about 400 UK restaurants and employs about 18,000 staff.

The closure announcement comes after TRG revealed its pre-tax losses grew last year to £86.8 million in 2022 up from £35.2 million in 2021 under the pressure of inflation on the cost of food and drink, energy and wages. Over the year, its total sales were £883 million compared to £636.6 million in 2021.

Andy Hornby, chief executive, said: “We've delivered a strong operating performance for the year in a market which has continued to pose a number of headwinds for casual dining operators.

“Current trading has been very encouraging to the great credit of our teams who continue to ensure our customers receive the best experience possible.

“We have a clear plan to increase margins over the next three years and deliver significant value for all our stakeholders."

Mr Hornby said that its Wagamama restaurants had seen a consistently strong sales performance and customer ratings which gave him confidence to increase investment in the brand going forwards.

TRG aims to open five new Wagamama restaurants a year for the next three years, and increase the number of restaurants from 156 to about 200 over the long term.