Cote Brasserie Owners Rescue The Real Greek With 19-Storey Deal Saving 358 Jobs

The Real Greek restaurant chain has been rescued from the brink of collapse after the owners of Cote Brasserie stepped in to buy 19 of its 28 outlets. The Real Greek's owners had announced they planned to appoint administrators for the Mediterranean restaurant business. However, Karali Group, which late last year bought the 70-strong Cote Brasserie chain, has made an offer for most of the smaller operator's sites. A statement on behalf of The Real Greek's parent company, Fulham Shore, said 358 out of 509 jobs would be saved. The Japanese restaurant group Toridoll, which owns Fulham Shore, had said on Friday that it planned to appoint administrators, raising fears the chain would close altogether. Fulham Shore also owns the Franco Manca chain, but Toridoll said The Real Greek had suffered more than the pizza chain from the "deterioration in the economic environment". Fulham Shore chief executive Marcel Khan said the company had made "clear and sustained improvements" since it was purchased by Toridoll in 2023. That had started to translate into "green shoots of trading momentum", he said. "However, the sustained pressures facing the hospitality sector, including elevated cost inflation and a fiscal environment that continues to place UK operators at a disadvantage relative to international peers, present significant challenges even for businesses that are delivering progress," he said. He said the pre-pack administration and sale to Karali would place the business on a more sustainable footing while allowing Fulham Shore to focus on Franco Manca and "its significant growth potential". The Real Greek, which was founded in London in 1999, says its aim is to "take you to Greece" with its blue and white decor, down-to-earth atmosphere, and hummus and moussaka-laden menu. Nearly half of its "tavernas" are in London, with the rest spread between Scotland and the rest of England. A statement from the chain's Japanese owners echoed warnings from hospitality industry bodies in the UK, which have pointed to increasing pressure from rising business rates, energy and labour costs. Toridoll said: "In recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increase in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated." Two weeks ago Fulham Shore said it was closing 16 of around 70 Franco Manca restaurants across the UK as part of a company voluntary arrangement, or restructuring plan, blaming "disproportionately high" UK taxes, including business rates.