Fulham Shore said revenue at its Franco Manca and Real Greek restaurants were running at less than half of normal levels while outlets run limited services.
Since 20 December 48 Franco Manca and 10 Real Greek sites have offered delivery and takeout services, Fulham Shore said. The company has 53 Franco Manca restaurants and Real Greek has 19.
Many of the company’s workers are on government furlough schemes and will stay there until normal trading resumes or the government withdraws support, the company said.
“The Group’s revenues are currently running at around 46% of what the board estimates to be normal trading levels, whilst we operate under these limited conditions,” Fulham Shore said. “The directors are confident that when the UK government removes trading and ‘stay at home’ restrictions, trading will return to previous levels.”
Fulham Shore said it had used all its government-backed loan facility of £10.75m and that it was in talks with HSBC about extending its £14.75m revolving credit facility, which is scheduled to end in March 2022.
Fulham Shore said financial pressures on the property and restaurant industries were throwing up opportunities to take on new sites at much reduced rents and with lower capital costs. Franco Manca has expanded even amid a glut of casual dining pizza restaurants, helped by the popularity of its sourdough pizzas cooked in woodfired ovens.
“We are negotiating for many sites throughout the UK to restart our expansion programme as soon as full restaurant trading resumes,” the company said.