Two family favourite restaurant chains ‘could be sold to rival’ after shuttering dozens of branches

TWO family favourite restaurant chains "could be sold" to a major rival after shuttering dozens of branches.

The Restaurant Group (TRG) is in talks to sell 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.

Talks are said to be at an advanced stage but could still fall through.

A spokesperson for the group said: "TRG confirms that it is in advanced discussions with The Big Table Group in relation to a potential divestment of its Leisure business.

"Whilst discussions are ongoing, there can be no certainty that they will lead to a transaction nor as to the final terms of any such transaction.

"A further announcement will be made as and when appropriate."

The sale would comprise of 75 sites across the two chains' estates, Sky News reports.

By selling to an established restaurant group the sale could protect the 3,000 employees in TRG's leisure estate, the report suggests.

The sale would further grow The Big Table's brands, which already consists of around 160 different chains, including Las Iguanas.

The Sun has contacted The Big Table group for comment.

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.

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.

Meanwhile, coffee lovers are saying goodbye to yet another branch while still reeling from a string of closures.

Elsewhere, the first Wilko stores set for closure have been announced by administrators.

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