Highlights
- Karali Group buys 19 of 28 Real Greek restaurants.
- 358 of 509 jobs saved in rescue deal.
- Nine sites closing including Edinburgh and Glasgow.
Karali Group, which bought Cote Brasserie last year, made an offer just as administrators were about to be appointed. The rescue saves 358 workers, though 151 jobs will be lost.
Nine sites closing
Real Greek's Japanese owner Toridoll announced plans on Friday to appoint administrators, raising fears the entire chain would shut. Toridoll also owns Fulham Shore, which runs Real Greek and Franco Manca pizza restaurants.
Nine Real Greek locations will close: Spitalfields, Westfield London, Dulwich Village, Bristol, Strand, Solihull, Gloucester Quays, Glasgow and Edinburgh. The remaining 19 will continue under new ownership.
Fulham Shore boss Marcel Khan told BBC that the business had improved since Toridoll bought it in 2023, showing "green shoots of trading momentum."
"However, the sustained pressures facing the hospitality sector, including elevated cost inflation and a fiscal environment that continues to place UK operators at a disadvantage, present significant challenges," Khan said.
The sale to Karali puts the business on stronger ground whilst Fulham Shore focuses on Franco Manca's growth, he added.
Real Greek started in London in 1999. It brings Greece to diners through blue and white decor and dishes like hummus and moussaka.
Nearly half its tavernas are in London, with others across Scotland and England. Recent accounts showed a £3.6 million loss.
Toridoll blamed Britain's tough business climate. "High levels of inflation in the UK, driven by rising energy and food prices together with increases in labour costs, have created a more challenging operating environment," the company told BBC.
Two weeks ago, Fulham Shore closed 16 Franco Manca restaurants, blaming high UK taxes and business rates.
Khan warned that "even restaurant businesses doing all the right things are not immune to pressures impacting the hospitality industry."
