02 May 2023 , 15:07
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The owner of restaurant chains Wagamama, Frankie & Benny's and Chiquitos are to shut 23 venues by the end of the month.
The Restaurant Group (TRG) announced on Tuesday that they had brought forward their programme to close loss-making restaurants as part of the company's ongoing cost-cutting efforts.
It follows a previous statement in March revealing that 35 of their restaurants would be disposed of in a measure to save the firm around £5 million per year in costs.
A statement from TRG read: "The combination of current trading and incremental cost savings achieved provides confidence that TRG is tracking ahead of management expectations on its medium-term margin accretion and deleveraging plans,"
Shares in the company jumped on Tuesday morning following the announcement, with executives hailing "good progress" in the cost-cutting programme.
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The Restaurant Group (TRG) had previously announced the closure of 35 stores (PA)TRG currently operate 410 venues across the United Kingdom, with their brands also including the Coast to Coast, Brunning & Price, and Firejacks chains.
The company revealed this week that like-for-like sales grew by 2% at Wagamama over the first quarter of 2023, with a 5% rise for its pub arm and 37% growth across its concessions, amid a recovery in airport passenger numbers.
Meanwhile, Wagamama sales grew 9% over the four weeks to April 30, while the sales decline at TRG's leisure sites slowed to 1%.
Like-for-like sales grew by 2% at Wagamama over the first quarter of 2023 (Getty Images)Up to eight new sites for pan-Asian casual dining chain are due to open in the next year.
Commenting on the company's update analysts at Barclays said: "The statement is strong across the board, with trading holding up well despite consumer spending headwinds."
Recent turmoil within the company saw activist investors Oasis pledge to vote down a "disproportionate" pay packet for CEO Andy Hornby as they campaign to improve returns on profits.
The Hong Kong-based investors, who own a 12.3% stake in the group, previously had a request for a seat on the board rejected.