(Alliance News) - Restaurant Group PLC on Monday said it is in talks with its landlords over potential restructuring options for the company's leisure estate, but said its Wagamama, airport concessions and pub operations won't be affected by these discussions.
Shares in the London-based company were up marginally at 74.05 pence each in London.
The Frankie & Benny's, Chiquito and Wagamama chains owner highlighted the sector is "facing exceptional challenges" in an "unprecedented operating environment".
"The casual dining sector was already facing significant challenges prior to the onset of Covid-19, with overcapacity and significant cost pressures," Restaurant Group said.
Last week, it was reported that a "large number" of Frankie & Benny's outlets would remain closed after lockdown. The BBC said a staff email was sent to managers in the group's Leisure division, which consists of more than 200 Frankie & Benny's restaurants saying many sites are "no longer viable to trade and will remain closed permanently".
In March, Restaurant Group was forced to shut a majority of its Chiquito Mexican-style outlets, as well as its Food & Fuel chain of pubs in London, after falling into administration.
The restaurant and pub sector has been one of the hardest hit industry amid the lockdown imposed by the UK government in order to curb the spread of Covid-19, resulting in nearly no sales over key trading periods such as Easter. Some restaurants, however, have been offering a take-away or delivery services only in a bid to stay afloat.
The Financial Times reported on Sunday that the UK government is hoping to reopen England's pubs and restaurants serving customers outdoors on June 22, amid fears of huge job losses.
Under previous plans, the hospitality sector had not been due to open until July 4, according to FT.
https://www.ft.com/content/72edead1-80ee-4787-8818-aacfd84ed638
By Tapan Panchal; tapanpanchal@alliancenews.com
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