Frankie & Benny’s owner The Restaurant Group today admitted it may delay planned new openings over the next two years due to the effect of worsening economic conditions on property development.
The company, which owns around 300 restaurants in the UK including Chiquito and Garfunkel's, revealed in a trading statement that it has so far opened 29 new restaurants out of a planned 38 for the year.
But the group added that it was scaling back its opening programme for the next two years due to economic conditions.
TRG said like-for-like sales rose 2.5% in the year to Nov.9, while turnover growth in the 45 weeks to the end of November increased by 16% compared with the same period in 2007.
For 2008 as a whole, TRG said it expected full-year results to be in line with its expectations.
Meanwhile, TRG has appointed former Eldridge Pope executive Tim Bird as head of its pub restaurant division.
In an analyst note on the results, Charles Stanley Securities said: “Whilst the outlook for trading is likely to remain subdued, we believe that the scale and value offering should enable the group to mitigate cost increases where possible.”
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By Daniel Thomas
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