Franco Manca Announces Closure of 16 Restaurants Across the UK
Franco Manca, the popular pizza chain, has confirmed plans to shut down 16 of its locations, a move that could result in the loss of approximately 200 jobs. This decision follows an announcement made last week, with the specific sites now being revealed.
Impact on Birmingham and Nationwide
The closures include the Franco Manca restaurant in Birmingham city centre on Bennetts Hill, highlighting the broader challenges facing the hospitality sector. Currently, the chain operates 70 locations across the UK, but this reduction will significantly impact its national presence.
The company has attributed the closures to "disproportionately high" UK taxes and a lack of business rates relief. These financial pressures have made it unsustainable to keep certain restaurants open, despite efforts to maintain customer satisfaction and operational efficiency.
List of Affected Locations
Most of the closures are concentrated in London, with the following sites set to shut:
- Brixton
- Battersea
- Broadway Market
- Chiswick
- Kilburn
- New Oxford Street
- Stoke Newington
- Tottenham Court Road
Outside of London, the following locations are also believed to be facing closure:
- Stortford
- Bromley
- Cheltenham
- Didsbury
- Glasgow
- Hove
- Lincoln
- Plymouth
Statement from Company Leadership
The chief executive of Fulham Shore, the parent company of Franco Manca, commented on the difficult decision. "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," they stated.
"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."
They 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."
The company expressed deep sadness over the closures and pledged to support affected team members throughout the process.
Broader Implications for the Hospitality Sector
This move underscores the ongoing struggles within the UK hospitality industry, which has been grappling with rising costs and economic uncertainties. Franco Manca's decision reflects a trend where businesses are forced to make tough choices to ensure long-term viability.
Additionally, Fulham Shore also owns the Real Greek restaurant chain, which is reportedly under review as well. With 28 locations across the UK, the future of this brand remains uncertain, though no specific details have been confirmed at this time.
The closures serve as a stark reminder of the challenges facing restaurants and other hospitality venues, particularly in urban centres like Birmingham and London, where operational costs can be particularly high.
