Financial Pressure on British Casual Dining Sector

The British casual dining sector is currently under intensive financial pressure, which will be highlighted by the administration of an Italian restaurant chain this week.

Administration of Italian Restaurant Chain

The Italian restaurant chain, which operates 13 locations, is expected to go into administration. Interpath advisory is preparing a pre-pack administration for the chain, with a vehicle from Cherry Equity Partners being the likely buyer.

Job Losses Expected

Most of the chain’s locations are expected to be taken over, although some job losses are likely. A deal could be announced in the coming days, according to insiders.

Effects of Tax Increases on the Sector

The collapse of the Italian restaurant chain follows a series of warnings from the hospitality industry about the effects of tax increases on the sector. The industry has warned that it is facing a "bloodbath" of job losses if financial pressure on operators continues to increase.

Investment in Casual Dining Sector

Meanwhile, veteran restaurant industry executive David Page is raising £10 million to take advantage of opportunities for discounted price acquisitions in the casual dining sector. Page plans to become the chair of a newly renamed company, the Bow Street Group, which owns brands including Wildwood and Dim t. A share placement in the company is expected to be completed this week.