Hundreds of jobs at risk as Franco Manca prepares to close 16 restaurants

Restaurant chain Franco Manca has confirmed plans to close around 16 restaurants as part of a restructuring that is expected to impact 225 jobs.

 

Parent group Fulham Shore, which also operates the Real Greek chain, blamed the suite of closures on “disproportionately high” UK taxes and a lack of business rates relief for restaurants. It added a minority of its sites were “no longer sustainable”.

 

The company has not disclosed which of Franco Manca’s 70-strong restaurant portfolio will be impacted.

 

Fulham Shore boss Marcel Khan said that it will launch a company voluntary arrangement (CVA) restructuring process for the Franco Manca business.

 

It comes two months after bosses hired advisers to look at strategic options, including a potential sale or a restructure.

 

It is understood that Fulham Shore is continuing to review future options for the 28-strong Real Greek chain.

 

Fulham Shore was bought by Japanese restaurant group Toridoll, with backing from investment firm Capdesia, in 2023 for £93.4m.

 

Khan, chief executive of Fulham Shore, said: “Even restaurant businesses that are doing all the right things from a customer and operational perspective are not immune to widely publicised pressures impacting the hospitality industry.

 

“This includes significant increases in national insurance and the national living wage in recent history, as well as a lack of business rates relief for the restaurant sector and disproportionately high VAT in the UK compared with Europe.”

 

He added: “As a result of these external cost pressures, we have to make sure that we are putting our business on a sustainable footing for long-term growth and development.

 

“This is why we have taken the difficult decision to undertake a CVA for Franco Manca, which will see a minority proportion of our restaurants closing where they are no longer sustainable in this cost environment.

 

“We are deeply saddened by the closures of a minority proportion of our restaurants, and will support our affected team members throughout this process in every way that we can.”

 

Khan joined the Franco Manca business in January 2024 from Thunderbird Fried Chicken, where he was CEO. He also spearheaded the expansion of US burger brand Five Guys in the UK.

 

Franco Manca was founded by Giuseppe Mascoli in London’s Brixton Market in 2008.