The Real Greek restaurant chain has been partially rescued from administration after the Karali Group purchased 19 of its 28 outlets. However, this rescue comes at a cost: nine locations will close, resulting in over 150 job losses.
As part of the restructuring, the central kitchen operation of The Real Greek will also shut down. This decision reflects the ongoing struggles within the UK casual dining sector, which is grappling with rising costs and inflationary pressures. In its last accounts, The Real Greek reported an operating loss of £3.6 million.
Founded in London in 1999, The Real Greek has become a staple of the UK dining scene. Yet, even with this rescue, it faces significant hurdles. The closures will affect sites in major cities like London, Bristol, and Scotland—locations that have long been part of its identity.
Key statistics:
- 358 out of 509 jobs will be saved due to the rescue deal.
- Karali Group acquired 19 out of 28 outlets.
- Nine locations are set to close across various cities.
- The operating loss reported was £3.6 million.
Marcel Khan from Karali Group expressed optimism about the future: “The transaction will ensure that the business is placed on a more sustainable footing for the future.” This sentiment echoes a broader acknowledgment within the hospitality industry regarding the challenging operating environment.
Toridoll, the parent company of Fulham Shore—which owns The Real Greek—highlighted how inflation and rising labor costs have created a tough landscape for restaurants. Indeed, many establishments are struggling to adapt to these economic realities.
Paul Berkovi noted their commitment to securing a future for The Real Greek: “We have worked closely with The Real Greek’s management team and are pleased to have completed a transaction that secures a future for a restaurant group enjoyed by diners over many years.” Yet, with significant job losses looming, how will this impact employee morale and customer loyalty moving forward?