Frankie & Benny’s owner The Restaurant Group (TRG) has said it plans to close up to 90 restaurant sites by the end of next year.
The dining firm said the closures will impact sites across its leisure portfolio, which includes the Frankie & Benny’s and Chiquito brands, and comes after it exited 18 sites in 2019.
The closure plan comes amid a tough period for casual dining chains, with rivals such as Jamie’s Italian collapsing over the past year.
The group own four restaurants in Union Square including Coast to Coast and Wagamama.
They also have Frankie & Benny’s and Chiquito at Aberdeen Beach.
TRG said at least 31 of its leisure sites will not see their contract renewed, with the number potentially rising depending on discussions with landlords.
It added that it also expects to dispose of up to 35 further sites, sell another 12 freehold sites, and plans to convert up to 12 current leisure restaurants into its more profitable Wagamama brand.
The move will take its leisure portfolio down to 260-275 sites by the end of 2021, from 350.
TRG confirmed the closure plans as it reported like-for-like sales growth of 2.7% for the year to December.
The group saw total sales soar 56.4% to £1.07 billion as it was buoyed by its £559 million acquisition of Wagamama in October 2018.
It said Wagamama continues to drive growth in the business, with the pan-Asian chain reporting an 8.5% increase in like-for-like sales over the period.
The group, which has 650 sites in total, slipped to a pre-tax loss of £37.3 million for the year, from a £13.9 million profit in 2018, as it was weighed down by its unprofitable leisure restaurants.
Andy Hornby, chief executive officer of TRG, said: “Our three growth businesses of Wagamama, concessions and pubs are all out-performing their respective markets and have clear potential for further growth.
“I am also acutely aware of the challenges facing our leisure business and the wider casual dining sector.
“Following an extensive review we have defined three clear strategic priorities for the next two years: Grow our Wagamama, concessions and pubs businesses; rationalise our leisure business; and accelerate our deleveraging profile.”
Scottish Conservative north-east MSP Liam Kerr said: “These restaurant chains are prominent in Aberdeen which is why these plans are very concerning.
“Staff need clarity on the proposals and an answer to the uncertainty.
“A lot of work has especially gone in to ensuring the beachfront remains vibrant but the possible closure of restaurants such as Frankie & Benny’s and Chiquito would be devastating for the area.
“My sympathies go out to the staff who are having to go through this difficult period.”