Oriental sells central kitchen
London-based Oriental Restaurants has sold its central production kitchen for £600,000 to an unnamed buyer.
The production kitchen, in Park Royal, west London, was set up last year to provide food for the group's fledgling chain of mid-market restaurants, Yellow River Café. But the investment proved costly and led to a series of disappointing financial results for the company.
Oriental said in a statement this afternoon: "The management recognises that the group is still at a relatively early stage of its roll-out of its Yellow River Café concept and, consequently, there is a disparity between volume and output at the central kitchen facility, which is likely to be ongoing for a considerable period."
A spokeswoman added that Oriental remained committed to the expansion of Yellow River and that the new owners of the production kitchen had entered into an agreement to supply the Yellow River restaurants.
She also described as "speculation" a report in the Sunday Business newspaper this week that the loss-making Pacific Oriental restaurant in the City of London could be sold to off-license and café-bar operator Parisa for £1.25m.
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