Prezzo to shut 46 UK restaurants, putting 810 jobs at risk
The Italian restaurant chain Prezzo has said it plans to close 46 outlets in the UK, putting 810 jobs at risk, in a sign of the struggles for the casual dining sector amid the cost of living crisis.
Announcing the news on Monday, the company blamed inflation, saying rising costs made it impossible for it to make a profit in some locations.
The restaurants closures will affect sites across England and Scotland – from Plymouth to Glasgow – including five apiece in Surrey, Essex and London. The restaurants were closed permanently on Monday after staff were informed.
Restaurant chains have suffered in recent years from the coronavirus pandemic and its aftermath. During Covid lockdowns casual dining was banned or restricted for months on end, and visits to many high streets have not recovered to their pre-pandemic levels.
On top of this weak financial situation, in the past 18 months the prices of food and energy have soared, adding to restaurants’ running costs and pushing customers to cut back on eating out.
Prezzo said its utility bills had more than doubled in a year, while the cost of spaghetti had risen by 40%. The cost of pizza sauce had risen by 28%, while diced mozzarella prices were up 18%.
The chain opened its first restaurant in 2000 in central London, eventually growing to 300 restaurants and 4,500 people across the UK. However, even before the pandemic hit it had become clear Prezzo had overextended. In 2018 it closed 94 sites after reaching an agreement with creditors.
In late 2020 the private property investor Cain International bought the chain from TPG Capital, when the casual dining sector was reeling. Shortly afterwards Prezzo closed 22 restaurants, with the loss of more than 200 jobs.
Dean Challenger, Prezzo’s
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