The Restaurant Group Plc (TRG) operates over 500 restaurants and pubs in the UK’s casual dining sector. It has plans to double in size over the next 8 to 10 years. The plans appear to be under threat as customers tastes and preferences appear to be changingThe company serves more than 43 million meals each year through our brands which include Frankie & Benny’s, Chiquito, Coast to Coast, Garfunkel’s, Brunning & Price and Joe’s Kitchen. The company also operates a Concessions business whichhas over 60 outlets across more than 30 brands, primarily in UK airports.

The Restaurant Group Brands

Brunning and Price Mostly in rural locations, each pub is unique, preserving their varied characters. The pubs serve cask ales, decent wines, and British dishes complemented by influences from other parts of the world. 53 pubs

Chiquito Tex-mex dishes ranging from fajitas, enchiladas, burritos and nachos to burgers, steaks, southern fried chicken and ribs. The décor draws inspiration from Mexican architecture and Latin style.  Chiquito targets young adults, couples, teenagers and students. 83 restaurants

Coast to Coast American eating. Classic burgers and steaks with other regional dishes 15 restaurants Frankie & Benny’s Classic New York and Italian 50s- and 60s-style restaurants specialising in pizzas, pastas and burgers. 200 restaurants Garfunkel’s Launched in 1979, in London. Garfunkel’s claims to be the original British café restaurant serving breakfast, lunch and dinner. 13 restaurants TRG Concessions This is a subsidiary of the group and runs franchises of other brands in airports, shopping malls and train stations 60 restaurants and bars           Consumers are switching to cheaper rivals indicating a change in tastes and preferences

The company’s website paints an optimistic picture of the company’s future with promises of new store openings. The reality is somewhat different as customers are increasingly opting to eat elsewhere. On March 9, £260 million was wiped of the value of the company in a single day. The drop in share price came after The Restaurant Group issued a warning that fierce competition and the growth of online rivals was hurting sales . Market analysts believe that Garfunkel’s, Frankie & Benny’s and Chiquito, are increasingly seen as dated brands by consumers. Consumers are opting for substitutes who are often cheaper and offer what are seen as exciting menus. Home delivery sites such as Deliveroo are also eating into sales.

The challenge facing the chain is competing with the expanding arnge of casual dining businesses in recent years such as Bill’s and La Tasca. A significant number of the new rivals are owned by private equity firms. The sector is attractive because of the levels of cash which businesses in this sector generate and the speed with which restaurants can be rolled out.

A significant number of shareholders voted against the company’s remuneration report because of the dissatisfaction felt at the poor level of performance and the rewards given to senior managers.