The Real Greek, a well-known UK restaurant chain with 28 outlets across the country, is set to close nine sites, including its Gloucestershire location at Gloucester Quays. This announcement comes as the chain enters administration due to rising operational costs and challenging economic conditions.
The affected venues include Spitalfields, Westfield London, Dulwich Village, Bristol, Strand, Solihull, Gloucester Quays, Glasgow, and Edinburgh. The closures will result in 151 redundancies as part of the restructuring process.
Following the administration of The Real Greek’s parent company, Fulham Shore, Japanese restaurant operator Toridoll has sold the business to the Karali Group, owner of Cote. Karali has secured a deal to rescue the brand but will retain only 19 of the 28 restaurants across the UK, although it has yet to specify which locations will remain open.
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The new ownership also confirmed that The Real Greek’s central kitchen will cease operations. While 151 jobs will be lost, employment will be preserved for 358 staff members at continuing venues.
This restructuring aligns with Fulham Shore’s recent voluntary arrangement involving its sister brand, Franco Manca, which led to the closure of 16 sites and 225 redundancies.
Marcel Khan, CEO of Fulham Shore, emphasized that the sale would place The Real Greek on a more sustainable path, allowing Fulham Shore to focus resources on Franco Manca’s growth. He expressed confidence that the brand and affected employees would be well supported through this transition.
Toridoll highlighted the significant challenges the hospitality sector faces amid rising inflation, increased energy and food costs, and higher labor expenses from minimum wage hikes. These factors have particularly impacted The Real Greek compared to Franco Manca.
The sale of Fulham Shore to Toridoll, backed by investment firm Capdesia, was completed in 2023 for £93.4 million.
Paul Berkovi, managing director at administrators Alvarez & Marsal, stated that the transaction secures a future for The Real Greek brand and that the focus will remain on ensuring a smooth transition and supporting employees affected by the closures.