The Real Greek, a well-known UK restaurant chain operating 28 venues across the country, is set to close nine of its sites, including its Gloucestershire location at Gloucester Quays. This move comes as the company enters administration due to escalating operational costs and challenging market conditions.
The affected locations span several cities and include Spitalfields, Westfield London, Dulwich Village, Bristol, Strand, Solihull, Gloucester Quays, Glasgow, and Edinburgh. The closures will result in 151 redundancies, while 19 venues will remain open under new management.
The Karali Group, owner of the Cote restaurant chain, has reached a rescue agreement to take over The Real Greek business following its parent company, Japanese restaurant operator Toridoll’s subsidiary Fulham Shore, entering administration. Karali plans to keep 19 of the original 28 restaurants operational but has not yet disclosed which ones will remain.
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In addition to the restaurant closures, The Real Greek’s central kitchen facility will cease operations, impacting further jobs. This restructuring follows Fulham Shore’s recent move to place its sister brand, Franco Manca, into a company voluntary arrangement, leading to 16 site closures and 225 redundancies.
Marcel Khan, Chief Executive of Fulham Shore, emphasized that the agreement will stabilize the business and allow the parent company to focus on Franco Manca’s growth. “We are committed to supporting our affected colleagues and confident that The Real Greek’s future under Karali will be promising,” Khan stated.
Toridoll highlighted that the chain struggled particularly due to high inflation, soaring energy and food costs, and rising labour expenses linked to minimum wage increases. These factors have impacted The Real Greek more severely than Franco Manca.
Toridoll acquired Fulham Shore with investment backing from Capdesia in 2023 for £93.4 million. Paul Berkovi, Managing Director at administrators Alvarez & Marsal, expressed optimism about the transaction securing The Real Greek’s future. He pledged to facilitate a smooth transition and support employees affected by closures.