The owner of Cafe Rouge, The Big Table, is in talks to snap up Chiquito’s and Frankie and Benny’s from The Restaurant Group (TRG).
According to a report first published in Sky News, the firm, which is backed by private equity group Epiris, is in negotiations with TRG, the London listed firm which owns Wagamama to acquire the casual dining chains.
If completed, the deal would see TRG pay a multimillion pound dowry to The Big Table to take the two restaurant chains off its hands, the report said.
The sale of Chiquito’s and Frankie & Benny’s would involve around 75 sites.
A TRG spokesperson told City A.M: “TRG confirms that it is in advanced discussions with The Big Table Group in relation to a potential divestment of its leisure business.
“Whilst discussions are ongoing, there can be no certainty that they will lead to a transaction nor as to the final terms of any such transaction. A further announcement will be made as and when appropriate.”
Both eateries have underperformed in recent years compared to TRG’s leading site Wagamama.
Earlier this year, TRG said it would reduce its estate by about 30 per cent, as it looked to cut loss making sites to boost profit.
However, the group has plans to open six Wagamama sites during the year and is setting a target to open between eight to 10 sites per year from 2024 onwards.
City A.M has contacted Epiris for a comment.