The owners of Cote Brasserie have stepped in to rescue the struggling The Real Greek restaurant chain, acquiring 19 of its 28 outlets in a deal that will save 358 jobs.
The Mediterranean chain had been on the verge of administration after its Japanese parent company, Toridoll, announced plans to appoint administrators last week. However, the Karali Group, which purchased the 70-strong Cote Brasserie chain late last year, made an offer for most of The Real Greek's sites.
A statement from Fulham Shore, The Real Greek's parent company, confirmed that 358 of the chain's 509 employees would retain their jobs. However, nine locations will close, including branches in Spitalfields, Westfield London, Dulwich Village, Bristol, Strand, Solihull, Gloucester Quays, Glasgow, and Edinburgh.
Fulham Shore also owns the Franco Manca pizza chain, but Toridoll noted that The Real Greek had been hit harder by the "deterioration in the economic environment."
Marcel Khan, chief executive of Fulham Shore, acknowledged the challenges facing the hospitality sector. He said, "The sustained pressures facing the hospitality sector, including elevated cost inflation and a fiscal environment that continues to place UK operators at a disadvantage relative to international peers, present significant challenges even for businesses that are delivering progress."
Khan added that the pre-pack administration and sale to Karali would place The Real Greek on a more sustainable footing, allowing Fulham Shore to focus on Franco Manca and its growth potential.
The Real Greek, founded in London in 1999, is known for its blue-and-white decor, casual atmosphere, and menu featuring hummus and moussaka. Nearly half of its "tavernas" are in London, with the rest scattered across England and Scotland. Its latest accounts showed an operating loss of £3.6 million.
The chain's Japanese owners echoed warnings from UK hospitality bodies about rising business rates, energy, and labour costs. Toridoll noted, "High levels of inflation in the UK, driven by rising energy and food prices together with increases in the minimum wage, have created a more challenging operating environment."
Just two weeks earlier, Fulham Shore announced the closure of 16 of its roughly 70 Franco Manca restaurants as part of a restructuring plan, blaming "disproportionately high" UK taxes, including business rates.