The Real Greek restaurant chain is facing a precarious future after its owners, Japanese group Toridoll, revealed plans to appoint administrators.
The decision comes amid intense cost pressures, including escalating inflation and rising workforce expenses, which Toridoll attributed to the move.
Toridoll, which controls The Real Greek’s parent company Fulham Shore, confirmed its board had opted to submit a notice of intent to appoint administrators.
A potential rescue deal for the beleaguered chain may be on the horizon, with reports indicating that Karali Group, owner of Cote restaurants, is interested in acquiring some of its 28 sites. However, Karali is reportedly only looking to purchase between 10 and 15 locations, which could lead to the closure of roughly half of The Real Greek’s estate.
Last month, Fulham Shore announced it was reviewing future options for the Greek chain. This development runs parallel to a company voluntary arrangement (CVA) restructuring process launched for its sister brand, Franco Manca, which will see 16 venues shut and 225 jobs lost. Toridoll admitted on Friday that The Real Greek has suffered more significantly due to the current challenging trading conditions.
It said: “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.”
“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 bought by Toridoll, with backing from investment firm Capdesia, in 2023 for £93.4 million.
