Family favourite restaurant chains with 400 branches SOLD in huge deal after shuttering dozens of locations

A RESTAURANT group which owns a host of family favourite brands has been sold as part of a huge new deal.

Wagamama owner The Restaurant Group (TRG) is set to be taken private after agreeing to a £701million takeover by private equity giant Apollo.

Apollo will pay 65p a share for TRG, which marks a 34% premium on the firm’s share price as of market close on Wednesday.

The deal values TRG shares at around £506million, or £701million including debts.

Other than Wagamama, TRG owns a host of other brands including:

• Barburrito
• Brunning & Price
• Coast to Coast
• Concessions
• Firejacks
• Est Italian

Commenting on this announcement, Alex van Hoek, partner in Apollo's private equity business, said: "This investment aligns with our strategy of backing industry-leading companies to drive profitable growth over the long term.

"TRG's business has proven resilient through macroeconomic cycles but the outlook is still one of high interest rates and inflationary pressures and the company now needs the support of patient private capital, to achieve its ambitions.

"We look forward to working with the management team and investing in TRG to accelerate its long-term strategy, leveraging our significant industry experience."

It comes only weeks after TRG sold both Frankie & Bennys and Chiquito to Cafe Rouge owner The Big Table group.

The Big Table owns other big name brands like Cafe Rouge and Bella Italia.

The move was aimed to allow the group to focus on its other brands, including Wagamama.

It comes after TRG revealed that it will be shutting around 40 sites by April 2024.

Plans will see its entire leisure estate reduce from 116 sites to between 75 to 85.

First announcing the closures back in March TRG reported widening losses last year and said some of its restaurant chains had been directly impacted by the cost of living crisis.

So far dozens closures have taken place, including Frankie & Bennys, Chiquito and Firejacks sites.

TRG also had to close hundreds of its restaurants as a result of the coronavirus pandemic.

At least 61 Chiquito restaurants were closed in 2020, with the loss of around 1,500 jobs.

It went on to close 125 of its other restaurants including a raft of Frankie & Benny’s locations.

It also completely shut down its Food and Fuel chain of pubs in London.

Earlier this week in its latest update the groups confirmed strong trading across pubs, concessions and its leading chain, Wagamama.

It is also aiming to open between eight to 10 new Wagamama restaurants a year from next year.

Food and drink chains in general have been suffering in recent months as the cost of living has led to fewer people spending on eating out.

The hospitality sector as a whole has been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.

Several chains have also been affected, resulting in brands like Wetherspoons closing branches.

In January, Byron Burger fell into administration with owners saying it would result in the loss of over 200 jobs.

Italian dining chain Prezzo revealed plans to shut 46 restaurants back in April as a result of soaring energy and food costs, putting 810 jobs at risk.

It comes after TRG, which also owns Wagamama, revealed that it will be shutting around 40 sites by April 2024.

Plans will see its entire leisure estate reduce from 116 sites to between 75 to 85.

First announcing the closures back in March TRG reported widening losses last year and said some of its restaurant chains had been directly impacted by the cost of living crisis.

So far dozens closures have taken place, including Frankie & Bennys, Chiquito and Firejacks sites.

TRG also had to close hundreds of its restaurants as a result of the coronavirus pandemic.

At least 61 Chiquito restaurants were closed in 2020, with the loss of around 1,500 jobs.

It went on to close 125 of its other restaurants including a raft of Frankie & Benny’s locations.

It also completely shut down its Food and Fuel chain of pubs in London.