A POPULAR gourmet burger chain is set to close 12 of its locations as part of a deal with one of its rivals.
Gourmet Burger Kitchen is selling 12 restaurants to Honest Burgers in a move that will roughly halve GBK’s size, which currently has more than 20 sites.
GBKGBK is set to sell 12 of its locations to Honest Burgers[/caption]
The exact locations impacted are yet to be confirmed, but Honest Burgers are set to expand in London, across the Midlands, the South East and East Anglia.
The sale means the branches will be converted to Honest Burgers, reports The Caterer, meaning they will disappear as GBK sites but remain as a burger restaurant.
Honest Burgers is yet to confirm when the newly-acquired sites will be rebranded.
It comes as GBK has previously found itself in hot water as it closed 26 restaurants and axed more than 350 jobs back in 2020, despite being saved from administration.
The brand was bought in a rescue deal by Boparan Restaurant Group five years ago as part of a pre-pack administration deal.
A “pre-pack administration” is an insolvency process for a business to sell its assets before formally appointing administrators – it’s a way of selling a business to a third-party buyer.
The chain currently has restaurants in these locations:
Belsize Park
Birmingham Brindleyplace
Bluewater
Bracknell
Brighton
Bristol Cabot Circus
Bristol Cribbs Causeway
Brunswick
Chiswick
East Dulwich
Kingston-upon-Thames
Lakeside
Leamington Spa
Norwich
Oxford
Reading
South Kensington
Trafford Centre
Waterloo
West Hampstead
Westfield London
Westfield Stratford
Wimbledon
Martin Owen, group people director of GBK owners Boparan Restaurant Group, said: “This is a strategic opportunity for GBK which allows us to focus on our core growth area of delivery.”
The acquisition means Honest Burgers will have more than 50 restaurants across the UK.
Thomas Kelly, chair of Honest Burgers’ board, added: “This acquisition is an important step in our strategic plan to quadruple the size of our business over the next five years.
“We’re excited about the journey ahead and the opportunity this brings.”
Other restaurant chains struggling
GBK is not the only restaurant chain undergoing changes.
Rival Byron is facing collapse and set to enter administration, according to reports.
Italian restaurant chain Gusto recently closed six of its locations as it was bought by private equity investment firm Cherry Equity Partners through a pre-pack administration process.
The Busaba Eathai chain, which was created by the founder of Wagamama, drafted in administrators in July.
Oakman Inns & Restaurants also went into administration earlier this year, closing six sites axing 159 jobs.
What is happening to the hospitality industry?
By Laura McGuire, consumer reporter
MANY Food and drink chains have been struggling in recently as the cost of living has led to fewer people spending on eating out.
Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.
Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny’s closing branches.
Some chains have not survived, Byron Burger fell into administration last year, with owners saying it would result in the loss of over 200 jobs.
Pizza giant, Papa Johns is shutting down 43 of its stores soon.
Tasty, the owner of Wildwood, said it will shut sites as part of major restructuring plans
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