Fulham Shore, the parent company of popular pizza chain Franco Manca and The Real Greek restaurants, has taken a significant step by appointing financial advisers to explore strategic options, potentially including a sale or restructuring of the business. This move comes as the UK's hospitality industry grapples with mounting challenges, including rising employment costs and recent business rate reforms.
Strategic Review Underway
On Friday, February 20, 2026, Fulham Shore announced it had engaged the services of Alvarez & Marsal, a prominent advisory firm, to conduct a comprehensive review of its strategic direction. The company emphasized that this review aims to position both Franco Manca and The Real Greek for long-term success, though no specific timeline or guaranteed outcome has been established.
Marcel Khan, Chief Executive of Fulham Shore, commented on the decision, stating, "While sales performance across Franco Manca and The Real Greek remains relatively robust, the current macroeconomic environment continues to place pressure on parts of the casual dining sector." He added that the review is intended to ensure both brands are on the strongest possible footing to realize their long-term potential, with any decisions focused on value creation and sustainability.
Background and Recent Performance
Fulham Shore, which was previously listed on the London Stock Exchange, was acquired by Japanese restaurant owner Toridoll in 2023. Recent financial results have highlighted struggles in what has been described as a sluggish restaurant market. Despite these challenges, Franco Manca reported a nine percent year-on-year increase in turnover, rising from £64.5 million to £70 million in the financial year ending March 2024.
However, the chain also closed two restaurants during that period, reducing its total number of UK sites to 70. This contraction reflects broader trends in the hospitality sector, where many businesses are facing economic headwinds. The appointment of advisers suggests that Fulham Shore is proactively addressing these issues, possibly to attract buyers or restructure operations to improve competitiveness.
Industry-Wide Pressures
The UK hospitality sector has been contending with a difficult operating environment in recent months. Key factors include:
- High employment costs, driven by wage increases and regulatory changes.
- Reforms to business rates, which have added financial strain for many restaurant operators.
- A sluggish market, with consumer spending under pressure due to broader economic uncertainties.
These challenges have prompted several hospitality groups to consider strategic shifts, including mergers, acquisitions, or operational overhauls. Fulham Shore's move to hire Alvarez & Marsal aligns with this trend, as companies seek expert guidance to navigate complex market conditions.
What's Next for Franco Manca and The Real Greek?
As the strategic review progresses, stakeholders will be closely watching for potential outcomes. These could range from a full sale of Fulham Shore to a partial restructuring of its brands. The company has stressed that there is no fixed timetable for the review, and no certainty regarding specific results, but the involvement of a reputable adviser like Alvarez & Marsal indicates a serious evaluation of options.
For now, Franco Manca and The Real Greek continue to operate, with sales described as relatively robust despite sector-wide pressures. The outcome of this review could significantly impact the future landscape of casual dining in the UK, especially if it leads to new ownership or strategic partnerships.
