The Real Greek restaurant chain set for administration

The owner of The Real Greek restaurant chain has confirmed that it has filed a notice of intention to appoint administrators.

According to reports, Cote owner Karali Group is close to a deal to acquire between 10 and 15 of the chain’s restaurants, potentially opening opportunities to acquire sites from the remainder of its 28-strong estate, which are at risk of closure.

Japanese restaurant group Toridoll, owner of The Real Greek parent company Fulham Shore, has confirmed that its board decided to submit a notice of intention to appoint administrators, citing factors including rising workforce costs and higher inflation.

Fulham Shore said last month that it was reviewing options for the Greek restaurant chain. This came alongside the announcement of a company voluntary arrangement (CVA) restructuring process for the group’s pizza chain Franco Manca, including the closure of 16 restaurants.

Toridoll, which acquired Fulham Shore for £93.4 million in 2023, has said that The Real Greek has suffered even more than Franco Manca in the face of poor trading conditions.

In a statement, the company 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."

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