Daily Newsletter

13 September 2023

Daily Newsletter

13 September 2023

TRG to divest two loss-making restaurant brands to Big Table Group

Under the deal, TRG will pay £7.5m in cash to Big Table Group.

Umesh Ellichipuram September 12 2023

UK-based restaurant operator The Restaurant Group (TRG) has reached an agreement with Big Table Group to divest its loss-making leisure arm.

The divestiture mainly comprises restaurant brands Frankie & Benny's and Chiquito.

The business now has about 75 eateries after TRG closed 40 of its locations during the past year due to declining business.

Apart from the 75 trading sites, Big Table Group will acquire associated costs and workforces.

The consideration to be paid by the acquirer to the TRG on completion of the divestment is £1. In addition, TRG will make a cash contribution of £7.5m, subject to some cash, debt, and working capital adjustments.

Frankie and Benny's is an Italian-American brand while Chiquito has offered Mexican cuisine for more than three decades.

The sale is a part of TRG's plan to reduce debt and increase its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) while continuing to evaluate its options.

TRG CEO Andy Hornby said: “A sale of our Leisure business significantly accelerates our medium-term strategic plans to increase Adjusted EBITDA margins and reduce leverage.

“On behalf of TRG, I would like to express our massive thanks to the extraordinarily hardworking and dedicated teams across the Leisure business who have made huge improvements in the customer proposition over the last few years. We wish them all well as part of the Big Table Group.”

The company noted that the divesture will allow TRG to focus on its three profit-making divisions: Wagamama, Pubs and Concessions.

Big Table Group CEO Alan Morgan said: “Creating, developing and acquiring brands that complement our existing portfolio whilst offering widespread consumer appeal is a fundamental part of our growth strategy.

“This exciting acquisition forms part of that strategy and we are delighted to be welcoming this new team into The Big Table Group.”

The transition is expected to be completed by 31 March 2024.

Customer engagement drives metaverse investment in the foodservice sector

COVID-19 and supply chain disruptions following the Ukraine war have accelerated automation and digitalization in the foodservice sector. Home delivery services and consumer engagement through digital channels have become essential for businesses trying to stay afloat. Foodservice companies must also cope with ESG issues, the fast-changing world of work, and the global economy heading for recession and possible stagflation. The metaverse, enabled by both AR and VR, is an important tool that can help address many of the foodservice industry's key challenges.

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