Portfolio

Restaurant Group says 10% of sites will remain closed this year

By Michele Maatouk

Date: Friday 10 Jul 2020

Restaurant Group says 10% of sites will remain closed this year

(Sharecast News) - Restaurant Group said on Friday that 10% of its estate will remain closed for the rest of the year as the coronavirus pandemic continues to dent footfall and that it has accessed £50m in government support.
The company, which owns the Wagamama and Frankie & Benny's chains, said it plans to have 25% of its estate operational by the end of this month, 60% by the end of August and 90% by the end of September.

"The remaining 10% of the estate is not expected to open this calendar year reflecting locations where footfall is anticipated to remain considerably weak (primarily in some airport locations)," it said.

The group also said it has added £10m to its overall committed debt facilities. It has accessed £50m from the government-backed CLBILS scheme and extended the term of the current revolving credit facility by six months to 30 June 2022.

Restaurant Group said executive and non-executive directors have volunteered to take a 20% cut to their base salaries or fees while the business continues to access the Coronavirus Job Retention Scheme. This follows on from the 40% reduction - 20% for the chief financial officer - that was volunteered from 1 April.

"As a result of recent corporate restructuring the revised trading portfolio of the group will comprise approximately 400 restaurants and pubs," it said.

"The group has now started a phased reopening of its restaurants and pubs for eat-in trade in line with government guidance.

"The diversified portfolio of the group allows each division to adapt to the challenges of social distancing uniquely, whilst keeping the customer at the heart of every decision."

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