The Real Greek is the latest UK restaurant chain to face an uncertain future amid soaring cost pressures after its owners revealed plans to appoint administrators.
Japanese restaurant group Toridoll – which owns The Real Greek’s parent company Fulham Shore – said its board had decided to submit a notice of intent to appoint administrators, in part laying the blame on higher inflation and rising workforce costs.
Reports suggest a rescue deal may be in the offing for The Real Greek, with Cote owner Karali Group said to be interested in buying some of its 28 restaurants. But it is thought that Karali may only look to acquire between 10 and 15 sites, which could mean the closure of around half the estate.
Last month, Fulham Shore said it was reviewing future options for the Greek chain.
It announced the review as it launched a company voluntary arrangement (CVA) restructuring process for sister restaurant brand Franco Manca, which will see it shut 16 venues with the loss of 225 jobs.
Toridoll admitted on Friday that The Real Greek had suffered more due to current poor trading conditions.
It said: “In recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increase in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated.”
“The deterioration in the economic environment has had a more significant impact on the Greek restaurant brand The Real Greek than on the Franco Manca business,” Toridoll added.
Fulham Shore was bought by Toridoll, with backing from investment firm Capdesia, in 2023 for £93.4 million.