The Restaurant Group (TRG), the owner of Wagamama, has agreed to sell its struggling leisure business, including brands such as Frankie & Benny’s and Chiquito, to Big Table Group, the owner of Cafe Rouge. The sale is aimed at boosting margins and reducing debt.
As part of the deal, Restaurant Group will pay Big Table £7.5 million ($9.38 million) and transfer 75 sites and restaurants. In return, Big Table will pay a nominal value of £1 to Restaurant Group.
Big Table Group, which is owned by a private equity firm, operates over 160 sites across the UK and owns restaurant brands like Bella Italia, Las Iguanas, and Banana Tree.
The transaction is expected to be completed in the fourth quarter and is anticipated to contribute to earnings in the first full year after completion, according to TRG.