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Gloucestershire Business News

Up to 90 Frankie and Benny's and Chiquitos restaurants set to close

The firm who run Frankie and Benny's and Chiquitos restaurant will close up to 90 of its UK restaurants by the end of 2020.

The Restaurant Group have announced the intended closures alongside their end-of-year results for a year in which 18 of its sites were closed.

The group currently operate more than 650 restaurants and pubs across the UK under the Wagamama, Frankie and Benny's, Chiquito and Brunning and Price brands.

Their 2019 results showed a marked increase in sales of 56.4 per cent - largely attributable to the group acquiring the Wagamama brand and outlets.

Revenues came in at £1.073 billion, up from £686million in 2018, while like-for-like sales were 2.7 per cent up on the previous year.

The group reported a pre-tax loss of £37.3million, down from a £13.9million profit in the previous year, partly due to the unprofitability of the restaurants in its leisure portfolio.

Chief Executive Andy Hornby said that "continued and significant progress" had been made following the acquisition of Wagamama for £500million plus last year

"The acquisition of Wagamama and the integration of the business into the Group, which has transformed the Group's growth trajectory and momentum," he said.

"Our three growth businesses of Wagamama, Concessions and Pubs are all out-performing their respective markets and have clear potential for further growth.

"I am also acutely aware of the challenges facing our Leisure business and the wider casual dining sector.

It is therefore clear that our strategic priorities need to evolve in order to maximise shareholder value in the medium term.

"Following extensive review we have defined three clear strategic priorities for the next two years:

"Grow our Wagamama, Concessions and Pubs businesses; Rationalise our Leisure business; and Accelerate our deleveraging profile

"In order to support these strategic priorities, the Board has taken the decision to temporarily suspend the dividend.

"This will allow us to continue investing in our three high growth businesses, whilst facilitating an acceleration of our Leisure estate rationalisation and reducing our net debt.

"We have made an encouraging start to the new financial year with like-for-like sales up 5.3% for the first six weeks of 2020."

There are Frankie and Benny's restaurants in Cheltenham and Gloucester, as well as a Chiquito in Cheltenham. Wagamama have branches in both Cheltenham and Gloucester.

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