Franco Manca is set to close around 16 restaurants as part of a restructuring plan that is expected to put about 225 jobs at risk, as parent company The Fulham Shore moves to shore up the business against mounting cost pressures.

The pizza chain’s owner said a “minority” of sites were “no longer sustainable”, blaming a combination of rising national insurance contributions, increases to the national living wage, limited business rates relief for restaurants and what it described as disproportionately high VAT in the UK compared with other European markets.

The closures will form part of a Company Voluntary Arrangement (CVA) for Franco Manca, with chief executive Marcel Khan saying the group had taken the “difficult decision” to restructure in order to put the business on a more sustainable footing for long-term growth.

The company has not yet confirmed which locations will be affected among Franco Manca’s roughly 70-strong estate.

The news comes two months after Fulham Shore appointed advisers to explore strategic options for the business, including a possible sale or wider restructuring.

Reports suggest the group is also continuing to assess future options for The Real Greek, its sister chain, which operates around 28 sites.

Khan said the business had made progress operationally over the past two years, with improvements in productivity, customer satisfaction, loyalty and visit frequency, but added that even well-run restaurant operators were not insulated from the wider pressures hitting hospitality.

Fulham Shore, the group behind Franco Manca and The Real Greek, was acquired in 2023 by Japanese restaurant operator Toridoll, backed by investment firm Capdesia, in a deal worth £93.4m.

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