// Local Frankie and Bennys / Coast to Coast to shut

Advertise YOUR business

Author Topic: Local Frankie and Bennys / Coast to Coast to shut  (Read 1180 times)

0 Members and 1 Guest are viewing this topic.

Offline Legend

  • Dozzle
  • ****
  • Posts: 1,501
  • Location: Durham City
  • Reputation: 18
Around 60 North East jobs are to go following a “challenging trading period” for The Restaurant Group.

The company, which operates 500 theme restaurants, has confirmed it is to shut Coast to Coast in The Gate complex in Newcastle, as well as Frankie & Benny’s in Trinity Square , Gateshead, within the next couple of weeks.

The move forms part of a wider plan to either sell or close 33 under-performing outlets throughout the country.

The business, which intends to open between 24 and 28 new sites this year, however, has stressed it will seek to redeploy as many staff as possible at other restaurants.

The news comes as The Restaurant Group released interim results for the 27 weeks ended July 3, which showed that while total revenue rose year-on-year by 3.4% to hit £358.7m, like-for-like-sales dropped 3.9%.

Operating profit also fell 4.4% to £37.5m, and, since the firm will take a £59.1m charge linked to the forthcoming closures, its overall half-year loss for the period amounted to £22.5m.

The Restaurant Group - which earlier this month removed chief executive Danny Breithaupt and replaced him with Paddy Power boss Andy McCue - said its leisure brands, which also include Chiquito, remained “relevant” and were operating in a growing market place.

Frankie & Benny’s, however, had been hit to some extent by increased competition, and had suffered due to “insufficient focus on value, unsuccessful menu development and poor operation execution”.

The group would therefore refine the proposition with greater focus on families, testing and trialling new value offers and returning popular dishes to the menu.

It added that business had improved slightly in recent weeks and that, despite the current trading environment, it was confident a strong focus on execution and careful cost control would result in achieving its full year targets of £74m-£80m profit before tax.

Chairman Debbie Hewitt said: “This has been a challenging trading period for our leisure brands, albeit with a good performance from our pubs and concessions businesses.

“The board has moved quickly to undertake a review of the operating strategy and we now have clarity on the issues facing our Leisure brands, particularly Frankie & Benny’s.

“The brand remains relevant and popular and we are confident that improved performance will be achieved by being more customer-focussed and data-driven, and through better operational execution.

“A new executive team is in place to lead the implementation of this first phase of the review and to apply the learnings to our other brands.

“The company is profitable, highly cash generative and has a strong balance sheet, and given our confidence in the current trading forecast, we are declaring an interim dividend of 6.8 pence per share, unchanged from last year.”
The North East Forum

Forums for North East England and County Durham. Chat with other Mackems, Mags and Smoggies. Sport and other stuff for lads 'n' lasses.


Advertise YOUR business

Offline Lancelot

  • Currack
  • *****
  • Posts: 2,012
  • Age: 79
  • Location: Middlesbrough & Mandurah, Western Australia
  • Reputation: 6
Re: Local Frankie and Bennys / Coast to Coast to shut
« Reply #1 on: Aug 31, 2016, 23:18 »
We eat out at least 4 days a week, sometimes five.  Only been to Frankie and Benny's three times.  Considered them overpriced and the food portions too small.  Nothing to encourage us to go back there, except the service was good.
Lancelot

Tags:
 

Powered by EzPortal
Sitemap 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
NorthEastForum.Co.Uk