Efforts to revive Restaurant Group, the struggling operator of Frankie & Benny’s and Garfunkel’s, resulted in a £117m charge that has pushed it to a full-year loss.
Sales have been slowing at the operator of chain restaurants after previous management raised prices and cut popular dishes from menus.
On Wednesday it said that sales in 2016 were up 4 per cent to £710m but that the charge, which has a cash element of £43m, would push it to a pre-tax loss of £40m, compared with a profit of £87m a year earlier. Excluding the impact of the charge, pre-tax profits were lower at £77m.
Andy McCue, chief executive, said:
Having completed the strategic reviews of our brands, we are now pursuing a new and focused plan to turnaround and grow the business. TRG has significant scale advantages, a diverse portfolio of brands with strong brand awareness and is highly cash generative.
However, there is much to change in our Leisure businesses to provide customers with better value and an improved experience while, at the same time, ensuring we continue to grow our Pubs and Concessions businesses. It will take time to effect the scale of change required and for customers to respond but I’m proud of how our colleagues are rising to the challenge.
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