Mon, 11 Sep 2023 | BUSINESS SALE
The Restaurant Group (TRG) has agreed a deal to sell its leisure business to private equity-owned The Big Table Group. TRG’s leisure business, which primarily comprises the Frankie & Benny's and Chiquito restaurant brands, covers 75 UK sites.
The deal will see The Big Table Group, which is owned by Epiris, acquire the 75 trading sites, along with their associated costs and workforces. The disposal forms part of TRG’s strategy of increasing adjusted EBITDA and deleveraging, amid an ongoing review of its options.
The group feels that the sale of its loss-making leisure business will enable it to “significantly accelerate” its core strategic goals. The two brands have been significantly affected over recent years by factors including declining high street footfall and the COVID-19 pandemic.
COVID-19 had a catastrophic impact on the already struggling casual dining sector and TRG was among the worst-affected, with the group announcing the closure of 120 of its restaurants in June 2020. More recently, the restaurant sector - along with the wider hospitality industry - has been hit by rising costs and declining consumer spending.
TRG Chief Executive Andy Hornby said: "A sale of our leisure business significantly accelerates our medium-term strategic plans to increase adjusted EBITDA margins and reduce leverage.”
"On behalf of TRG, I would like to express our massive thanks to the extraordinarily hardworking and dedicated teams across the leisure business who have made huge improvements in the customer proposition over the last few years. We wish them all well as part of the Big Table Group."
The deal will create a retained group that consists of three divisions of Wagamama, concessions and pubs. The Big Table Group operates a portfolio of over 160 sites, including well-known brands such as Banana Tree, Bella Italia and Las Iguanas.
The Big Table Group Chief Executive Alan Morgan commented: "Creating, developing and acquiring brands that complement our existing portfolio whilst offering widespread consumer appeal is a fundamental part of our growth strategy.”
"This exciting acquisition forms part of that strategy and we are delighted to be welcoming this new team into The Big Table Group."
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