Even well-run restaurants cannot escape the pressures now endemic to the sector
For nearly three decades, The Real Greek brought the warmth of Mediterranean taverna culture to British high streets — only to find itself, like so many of its peers, undone not by a failure of hospitality but by the accumulated weight of inflation, rising wages, and a tax environment that leaves little room for resilience. This week, a quiet rescue arrived: the family-owned Karali Group agreed to absorb 19 of the chain's 28 locations, sparing 358 livelihoods from the silence of administration. Nine restaurants will close regardless, and the episode stands as one more chapter in a longer story about what it costs to feed people well in modern Britain.
- A 27-year-old restaurant chain teetered on the edge of total collapse after its Japanese parent company moved to place it into administration, threatening all 509 jobs.
- Nine locations — spanning London, Scotland, and England — will permanently close, erasing 151 positions and shrinking the chain's footprint to its smallest in years.
- The Karali Group, a family business already stewarding the 70-strong Cote Brasserie, stepped in with a pre-pack acquisition that preserved the majority of the operation before full collapse could take hold.
- The chain's parent, Fulham Shore, had already shuttered 16 Franco Manca pizzerias just two weeks prior, signalling a sector-wide reckoning rather than an isolated corporate failure.
- Industry voices and executives alike point to the same convergence of pressures — food and energy inflation, minimum wage increases, and disproportionately high business rates — as the structural force behind the closures.
- The rescued rump of The Real Greek now seeks stable ground, while Fulham Shore pivots its remaining ambitions toward Franco Manca, betting that focus can succeed where breadth could not.
The Real Greek, a Mediterranean restaurant chain that has served British diners for nearly three decades, was rescued from administration this week when the Karali Group — the family-owned business behind Cote Brasserie — agreed to acquire 19 of its 28 locations. The move came after Toridoll, the Japanese parent company that purchased Fulham Shore in 2023, announced plans to place the business into administration, a step that would likely have closed the entire operation.
The rescue preserves 358 of the chain's 509 jobs, but nine restaurants will not survive the transition. Closures span London sites including Spitalfields, Westfield, Dulwich Village, and the Strand, as well as Bristol, Solihull, Gloucester Quays, Glasgow, and Edinburgh — costing 151 workers their positions. For a chain founded in 1999 with a mission to recreate the unpretentious spirit of a Greek taverna, the contraction marks a significant retreat.
Fulham Shore had been under mounting pressure for some time, with recent accounts showing an operating loss of £3.6 million. Chief executive Marcel Khan acknowledged that even businesses showing genuine operational progress cannot easily escape the headwinds now endemic to UK hospitality: sustained food and energy inflation, rising labour costs tied to minimum wage increases, and a tax environment — particularly business rates — that places British operators at a disadvantage.
The Real Greek's collapse into administration follows Fulham Shore's decision, just two weeks earlier, to close 16 of its roughly 70 Franco Manca restaurants through a company voluntary arrangement. The pattern is consistent with a broader industry reckoning, not a single company's misfortune. The pre-pack sale to Karali Group is designed to place the surviving restaurants on firmer footing, while Fulham Shore redirects its focus toward Franco Manca — a bet on concentration over scale, in a climate that has punished both.
The Real Greek, a Mediterranean restaurant chain that has operated in Britain for nearly three decades, was pulled back from the edge of closure this week when the owners of Cote Brasserie agreed to acquire 19 of its 28 locations. The rescue came as the chain's Japanese parent company, Toridoll, had announced plans to place the business into administration—a move that would have likely shuttered the entire operation. Instead, the Karali Group, a family-owned business that acquired the 70-strong Cote Brasserie chain late last year, stepped in with an offer for most of The Real Greek's sites, preserving 358 of the chain's 509 jobs.
Nine restaurants will not survive the transition. The closures affect locations across London, Scotland, and England: Spitalfields, Westfield London, Dulwich Village, Bristol, Strand, Solihull, Gloucester Quays, Glasgow, and Edinburgh. The loss of these nine outlets means 151 positions will disappear. For a chain founded in London in 1999 with a mission to evoke the atmosphere of a Greek taverna—blue and white decor, hummus, moussaka, an unpretentious vibe—the contraction represents a significant retreat from its peak footprint.
The Real Greek's parent company, Fulham Shore, has been under pressure for some time. Its most recent accounts showed an operating loss of £3.6 million. Toridoll, which bought Fulham Shore in 2023, had hoped to turn the business around, and executives pointed to "clear and sustained improvements" and early signs of trading momentum. But those gains proved insufficient to weather the broader storm battering the UK hospitality sector. Marcel Khan, Fulham Shore's chief executive, acknowledged that even businesses making operational progress face headwinds that are difficult to overcome: elevated inflation in food and energy costs, rising labour expenses tied to minimum wage increases, and a fiscal environment that puts British operators at a disadvantage compared to their international counterparts.
The Real Greek's struggles are part of a larger pattern. Two weeks before this announcement, Fulham Shore had already closed 16 of its roughly 70 Franco Manca pizza restaurants as part of a company voluntary arrangement—essentially a restructuring plan designed to keep the business afloat. The company blamed "disproportionately high" UK taxes, particularly business rates, for making the closures necessary. Khan had warned at that time that even well-run restaurants cannot escape the pressures now endemic to the sector.
Toridoll's statement echoed concerns raised repeatedly by hospitality industry bodies across Britain. The combination of high inflation driven by energy and food prices, alongside increases in labour costs from rising minimum wages, has created an operating environment far more challenging than many anticipated when they made their investments. The Real Greek, with nearly half its tavernas concentrated in London and the remainder scattered across Scotland and the rest of England, found itself unable to absorb these mounting pressures.
The pre-pack administration and sale to Karali Group is intended to place the remaining business on firmer ground. For Fulham Shore, the move allows the company to redirect its focus toward Franco Manca, which executives believe holds "significant growth potential." Whether that optimism proves justified will depend partly on whether the broader conditions facing UK hospitality improve—a question that remains unanswered as energy costs, wage pressures, and tax burdens continue to weigh on restaurant operators across the country.
Citas Notables
The sustained pressures facing the hospitality sector, including elevated cost inflation and a fiscal environment that continues to place UK operators at a disadvantage relative to international peers, present significant challenges even for businesses that are delivering progress.— Marcel Khan, Fulham Shore chief executive
High levels of inflation in the UK, driven by rising energy and food prices together with increase in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated.— Toridoll (The Real Greek's parent company)
La Conversación del Hearth Otra perspectiva de la historia
Why did Toridoll, a Japanese company, buy Fulham Shore in the first place if the UK market was already this difficult?
They saw potential. The accounts show The Real Greek was losing money, but Toridoll believed they could turn it around through better management. They made improvements. The problem is that no amount of operational excellence shields you from inflation, energy costs, and the tax structure.
So this is less about The Real Greek being badly run and more about the environment?
Exactly. Khan's statement is careful but clear: they did the right things operationally. The issue is systemic. Even successful restaurants can't survive when your costs keep rising and your customers have less to spend.
Why did Karali Group buy 19 locations instead of all 28?
Nine weren't worth saving. They were probably underperforming or in expensive locations. Karali is being strategic—they're taking the viable sites that fit their portfolio, not rescuing the entire chain out of charity.
What happens to the 151 people losing their jobs?
The statement doesn't say. That's the human cost buried in the numbers. They're not mentioned again after the headline.
Is Franco Manca in better shape?
Apparently, yes—or at least Fulham Shore thinks it has better growth prospects. But they just closed 16 of 70 locations two weeks ago, so Franco Manca is struggling too. The difference might just be that it's more salvageable.
What does this tell us about UK hospitality right now?
That even rescue deals aren't really rescues. They're triage. The sector is under structural pressure, and companies are choosing which parts to keep alive and which to let go.