The Restaurant Group (TRG), which operates over 500 eateries, is set to close 33 of its most underperforming sites, according to the firm's half-year report.
The closures will include 14 Frankie & Benny's outlets and 11 Chiquito restaurants, following a 'challenging trading' period. The majority of the upcoming restaurant closures will be outside of London, including three Chiquito restaurants in Wales.
Total revenue was up 3.4% to £358.7m with like-for-like sales down 3.9%. The group posted pre-tax losses of £22.5m for the first half of the year as it took a hit from a £59.1m exceptional charge linked to the store closures and writedowns.
The company has opened seven new sites so far this year, with a projected 24 to 28 new sites in 2016.
Debbie Hewitt, Chairman said, 'This has been a challenging trading period for our Leisure brands, albeit with a good performance from our pubs and concessions businesses.
'The Board has moved quickly to undertake a review of the operating strategy and we now have clarity on the issues facing our Leisure brands, particularly Frankie & Benny's.
'The brand remains relevant and popular and we are confident that improved performance will be achieved by being more customer-focussed and data-driven, and through better operational execution.'
Hewitt continued, 'A new executive team is in place to lead the implementation of this first phase of the review and to apply the learnings to our other brands.
'The company is profitable, highly cash generative and has a strong balance sheet, and given our confidence in the current trading forecast, we are declaring an interim dividend of 6.8 pence per share, unchanged from last year.'