The Real Greek faces administration as inflation squeezes UK chain
The Real Greek’s owner moved to appoint administrators for the 28-site chain as inflation and staffing costs bit hard. A rescue bid could save 10 to 15 restaurants.
The Real Greek has been pushed to the brink of administration as its owner moves to shield the 28-strong Mediterranean chain from mounting cost pressure. Toridoll Holdings Corporation, which controls parent company Fulham Shore, said its board had resolved to submit a notice of intent to appoint administrators for The Real Greek Food Company Limited, citing higher inflation and rising workforce costs.
The move puts fresh scrutiny on one of the UK’s better-known casual dining names and underlines how quickly a recognisable brand can be squeezed when input costs climb faster than sales. Toridoll bought Fulham Shore in 2023 for £93.4 million, backing a business that also owns Franco Manca, but the group has now said the deteriorating economic environment has hit The Real Greek more severely than its pizza sister brand.
That difference matters. It suggests this is not simply a group-wide accounting exercise, but a stress test of how different restaurant formats are coping with the same hit to consumer spending. The Real Greek’s mix of mid-market dining, urban rents and labour-intensive service has left it especially exposed as higher wages and general inflation continue to bite into margins.
A rescue deal could still emerge. Reports have indicated that Karali Group, owner of Cote, is interested in buying some of The Real Greek’s sites, with around 10 to 15 of the chain’s 28 restaurants potentially in play. That would not amount to a full rescue, but it could preserve part of the estate if buyers can agree terms quickly.
The chain’s troubles also come as Fulham Shore presses ahead with a separate restructuring at Franco Manca. That process is expected to close 16 restaurants and put about 225 jobs at risk, a reminder that the pressure is not confined to a single brand. For the wider UK casual dining sector, the sequence is stark: wage costs, rents, energy bills and weaker discretionary spending are forcing even established groups to shrink, refinance or sell sites one by one.
Know something we missed? Have a correction or additional information?
Submit a Tip
