Franco Manca Pizzeria Chain Announces Major UK Closures
Franco Manca, the beloved UK pizzeria chain, has revealed plans to shut down 16 of its locations across the country, including its restaurant in Birmingham city centre on Bennetts Hill. The decision comes as the business grapples with significant financial pressures in the hospitality sector.
Reasons Behind the Closures
The parent company, Fulham Shore, cited "disproportionately high" UK taxes and a lack of business rates relief as primary factors driving the closures. Marcel Khan, chief executive of Fulham Shore, explained that even well-run restaurants are not immune to the widespread challenges facing the industry.
Key issues highlighted include:
- Substantial increases in national insurance and the national living wage.
- Absence of business rates relief specifically for the restaurant sector.
- Higher VAT rates in the UK compared to European counterparts.
Impact on Franco Manca and The Real Greek
Currently, Franco Manca operates 70 locations nationwide, but the specific 16 sites to be closed have not yet been disclosed. The closures are part of a Company Voluntary Arrangement (CVA) aimed at ensuring long-term sustainability. Khan expressed deep sadness over the decision, emphasizing support for affected team members during the transition.
Fulham Shore also owns The Real Greek restaurant chain, which is under review for potential changes. With 28 locations across the UK, no concrete details about its future have been confirmed, but options are being evaluated amidst the same economic pressures.
Broader Implications for the Hospitality Industry
This move underscores the ongoing struggles within the UK hospitality sector, where rising costs and regulatory burdens are forcing businesses to make tough decisions. The closure of Franco Manca sites serves as a stark reminder of the need for policy adjustments to support restaurants and similar enterprises.
As the industry navigates these challenges, customers and employees alike are left awaiting further updates on which locations will close and how the brands will adapt to ensure future growth and stability.
