The Real Greek Chain Faces Financial Struggles
The Real Greek, a restaurant chain with 28 locations across the UK, is reportedly on the verge of closure. The company that owns the chain has indicated that escalating cost pressures have rendered the business unsustainable.
Ownership and Administration Plans
The Japanese restaurant group Toridoll, which acquired the parent company Fulham Shore in 2023, announced plans to appoint administrators for The Real Greek. Fulham Shore also owns the Franco Manca pizza chain, but Toridoll noted that The Real Greek has been more adversely affected by the "deterioration in the economic environment" compared to Franco Manca.
Economic Challenges Impacting the Hospitality Sector
Toridoll highlighted the challenging conditions in the UK hospitality industry, citing inflation and increased operational costs. The company stated:
"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."
Potential Acquisition Interest
There are reports that Karali Group, the owner of the Cote Brasserie chain, may be interested in acquiring some of The Real Greek's restaurants, although no formal agreement has been confirmed.
