Karali Group Purchases 19 Real Greek Restaurants, Saving 358 Jobs From Closure

Karali Group, the entity behind Cote Brasserie, has stepped in to purchase 19 of The Real Greek's 28 restaurant sites, preventing the Mediterranean chain from entering full administration. The acquisition secures employment for 358 of 509 staff.

Fulham Shore, The Real Greek's parent company, had previously announced intentions to appoint administrators for the business. The Japanese restaurant group Toridoll, which owns Fulham Shore, cited a “deterioration in the economic environment” as a contributing factor, noting The Real Greek’s struggles surpassed those of its Franco Manca pizza chain.

Marcel Khan, Fulham Shore chief executive, acknowledged that while the business had shown “clear and sustained improvements” since Toridoll’s 2023 acquisition, the hospitality sector’s “sustained pressures,” including elevated cost inflation and an unfavourable fiscal environment, presented substantial challenges. He stated the pre-pack administration and sale to Karali would establish a more sustainable foundation, allowing Fulham Shore to concentrate on Franco Manca’s “significant growth potential.”

The Real Greek, established in London in 1999, reported an operating loss of GBP#3.6 million in its last accounts. Toridoll echoed broader hospitality industry concerns regarding rising business rates, energy costs, and increased labour expenses stemming from minimum wage hikes. These factors, they stated, have created a more challenging operational landscape than anticipated.

Two weeks prior, Fulham Shore had initiated a company voluntary arrangement to restructure Franco Manca, leading to the closure of 16 of its approximately 70 restaurants. This was attributed to “disproportionately high” UK taxes, particularly business rates.