The Real Greek, which has 28 outlets across the UK, is the latest restaurant chain to reveal plans to appoint administrators as it admitted struggling due to soaring costs
UK restaurant chain The Real Greek is set to close nine outlets with 151 redundancies after the hospitality business entered administration.
Cote owner Karali Group confirmed on Friday that it has secured a rescue agreement for the operation after Japanese restaurant group Toridoll – the owner of The Real Greek’s former parent company Fulham Shore – went into administration. However, Karali stated it would only keep open 19 of The Real Greek’s 28 restaurants nationwide.
It has not revealed which sites will close and which will continue trading. The new owner indicated the decision will also lead to 151 redundancies, though it will safeguard the employment of 358 staff members.
Industry publication Propel reported that The Real Greek’s central kitchen will also be shuttered. Last month, Fulham Shore announced it was examining future options for the Greek chain.
It revealed the review as it starteda company voluntary arrangement (CVA) restructuring procedure for sister restaurant brand Franco Manca, which will see it close 16 sites with the loss of 225 positions. Marcel Khan, chief executive of Fulham Shore, stated: “The transaction will ensure that the business is placed on a more sustainable footing for the future, while allowing The Fulham Shore to focus its energy and investment behind Franco Manca and its significant growth potential.
“We’re pleased to be handing it over to Karali with real momentum. We will now do everything we can to support colleagues affected by this process and believe that both the brand and its teams will be in very good hands as the business moves into its next chapter.”
Toridoll revealed earlier on Friday that The Real Greek had been hit by the current difficult trading climate, stating: “In recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increase in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated.
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“The deterioration in the economic environment has had a more significant impact on the Greek restaurant brand The Real Greek than on the Franco Manca business,” Toridoll added.
Fulham Shore was acquired by Toridoll, backed by investment firm Capdesia, in 2023 for £93.4 million.
Paul Berkovi, managing director at administrators Alvarez & Marsal, commented: “We have worked closely with The Real Greek’s management team and are pleased to have completed a transaction that secures a future for a restaurant group enjoyed by diners over many years.
“Our immediate focus as administrators will be to provide a smooth transition for the business and to support employees affected by site closures. We are grateful to all stakeholders for their constructive engagement throughout this process.”
