GBK could cut plans for new stores after disappointing results

 
Alys Key
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GBK has been affected by weaker consumer confidence in the UK (Source: gbk.co.uk)

Gourmet Burger Kitchen (GBK) is set to slow down on new store openings as the whole UK casual dining sector takes a hit from dwindling consumer confidence.

The premium burger chain was bought up by South African company Famous Brands last year, which also owns Wimpy Burger in the UK.

But shares in Famous plummeted earlier this month when it released a trading update saying that the acquisition was likely to chalk up a loss of 16m Rand (£872,000) in the six months to the end of August.

Today it was revealed that the chain would cut projects from its pipeline of new openings, according to MCA Insight.

Read more: Gourmet Burger Kerching for Nando's owner

The most recent trading update noted the impact that socio-political uncertainty in the UK had on consumers, a trend which has also been pointed to by peers Franco Manca and Wildwood.

It also follows the news yesterday that GBK's close rival Byron is undergoing a strategic review, and could seek a new owner for part or all of the business.

However, GBK's South African franchise and development business was expected to do better than its UK counterpart due to better market conditions.

Read more: Byron Burger could be gobbled up by a new owner

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