The UK pizza chain Franco Manca is preparing to close approximately 16 locations, impacting around 225 jobs. This move is a part of a restructuring strategy initiated by its parent company, The Fulham Shore.
Reasons Behind the Closures
This decision stems from several factors affecting the restaurant sector. Marcel Khan, the chief executive of Fulham Shore, pointed out that the company faces pressures from:
- High national insurance contributions
- Increased national living wage
- Lack of business rates relief
- High VAT rates in the UK compared to Europe
As a result, some locations are deemed “no longer sustainable.” A Company Voluntary Arrangement (CVA) will be activated to facilitate this process.
Franco Manca’s Current Status
Franco Manca currently operates around 70 outlets across the UK. The specific locations set for closure have not been revealed yet. However, the company’s restructuring plans follow the engagement of advisers to explore strategic options, including potential sales or reorganization measures.
Future Prospects
Fulham Shore is also reviewing its other brand, The Real Greek, which consists of 28 restaurants, as part of its long-term strategic planning. In 2023, Fulham Shore was acquired by the Japanese restaurant group Toridoll, with an investment of £93.4 million from Capdesia.
Support for Affected Employees
Marcel Khan expressed sadness over the impending closures and emphasized the company’s commitment to support affected staff. He reiterated that, despite external challenges, they must ensure the sustainability of the business for future growth.
