Another restaurant operator has said it will scale back new openings and close more sites as the casual dining crunch continues to bite.
Tasty, the owner of the Wildwood and Dim T brands, issued a statement this morning saying it will not open any new restaurants in 2018. It has also stripped back its portfolio, closing six sites including one in Canary Wharf. More are currently slated for closure.
This follows a similar announcement by Franco Manca owner Fulham Shore, which said last week it would slow down the rate of new openings.
Tasty also said that it did not expect the trading outlook for the restaurant sector to improve in 2018. It has given up six sites and also undertook a sale and leaseback on a restaurant in Kettering. It will also make further disposals in 2018 if they fit the business strategy.
It also plans to restructure on the operational side, reducing the headcount of its team.
Shares in the company fell two per cent this morning.
Industry analyst Mark Brumby of Langton Capital said Tasty has "done the right thing" by closing underperforming restaurants.
"It was reasonably early and may have jettisoned sites before the rush of CVAs that we now see upon us," he said.