Prezzo to shut down 46 restaurants, putting 810 workers at risk after huge profit losses
- Hundreds of workers are at risk of losing their jobs after the announcement
Italian restaurant chain Prezzo has said it will close 46 loss-making sites, putting around 810 workers at risk of redundancy.
The brand says the closures come after its utility costs rocketed by more than double.
Bosses at the private equity-owned business said the cuts, which are part of a broader strategic review, will affect sites where ‘the post-Covid recovery has proved harder than we had hoped’.
The shake-up will leave the hospitality chain with 97 restaurants and about 2,000 staff.
It said the closures will impact some high street sites as its portfolio shifts more towards those ‘in better locations to cater to changing consumer habits’ such as shopping centres, retail parks and tourist destinations.
Prezzo has announced it will close 46 loss-making sites in Britain, putting more than 800 people at risk of redundancy
Staff were informed about the closures on Monday morning, with a consultation process launched.
Prezzo said it will work to redeploy ‘as many staff internally as possible’ and will support others in new opportunities.
The restaurant group said costs have leapt over the past year, with its utility bills more than doubling and double-digit wage inflation.
It has also been impacted by soaring food inflation, which hit a 45-year high last month, with Prezzo witnessing a 40 per cent increase in the cost of spaghetti, 28 per cent rise for pizza sauce and 15 per cent increase in the cost of its dough balls.
Dean Challenger, chief executive of Prezzo, said: ‘The last three years have been some of the hardest times I have ever seen for the high street and I’m extremely proud of the way our colleagues have retained Prezzo’s position as an appealing, trusted, great value food and drink experience.
‘But the reality is that the cost-of-living crisis, the changing face of the high street and soaring inflation has made it impossible to keep all our restaurants operating profitably.
‘We believe the tough decisions we are making today will ensure Prezzo can continue serving communities with high-quality, accessible Italian-inspired meals for many more years to come.’
The hospitality firm fell into administration in late 2020 after the heavy impact of the pandemic, before being snapped up by current private equity owners Cain International.
This closure plan comes two years after the group previously shut 22 restaurants and cut 216 jobs.
The full list of closures is as follows:
– Buckhurst Hill
– Glasgow, St Vincent Place
– Mere Green
– Mill Hill
– St Neots
– Tunbridge Wells
– Woodford Green
Source : https://www.dailymail.co.uk/news/article-12007185/Prezzo-shut-46-restaurants-putting-810-workers-risk-huge-profit-losses.html?ns_mchannel=rss&ito=1490&ns_campaign=1490&rand=1270