High Street shopping, the drama continues…
3 September 2019 by Ellen Petersen
Following on from posts here in May this year and concerning the gloomy high street forecast, BBC News has reported today that half of Chiquito restaurants are under threat following a review by owners, the Restaurant Group.
BBC News says that Restaurant Group has reported a loss for the first half of the year and that shares in Restaurant Group fell by nearly 14% in early trading on Tuesday 3rd September. And in March this year, the Restaurant Group identified 76 Frankie & Benny’s restaurants in what it now considers to be unfavourable locations and it has now highlighted 42 more sites, which are mainly Chiquitos restaurants. This will impact many out of town eateries on purpose-built retail estates.
There are 79 Chiquito restaurants across Great Britain, with the highest number, in the West Midlands, but it is not known which ones are under threat. Negotiations relating to lease renewal for these restaurants are likely to be difficult, with both sides seeking to get the best compromise possible. BBC New quotes a spokesman for the group who says it will be “highly disciplined in considering whether or not leases are renewed” as each one nears its end. Uncertainty ahead then for the out-of-town dining experience.
By contrast, BBC News reports that Wagamama, which was bought by the Restaurant Group last year, “was doing well because it reflected the increased consumer demand for convenient and healthy food”. Perhaps this also explains the rise of “healthy” food outlets and the promotion of vegan / vegetarian restaurants relating to healthy “lifestyle” choices.
The debate about town-centre versus out-of-town retail, dining and social experiences therefore continues.
If you are a business owner tenant or landlord and require some help in lease renewal negotiations, or how to bring a lease to an early end, please do get in touch with our commercial property team.
With thanks to BBC News (Business) 3.9.2019.
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