Byron Burger chain owner shuts sites and axes jobs

The owner of the Byron Burger chain has said it will close nine restaurants and cut 218 jobs in another restructure of the business.

Famously Proper Ltd, which also controls the Mother Clucker fried chicken brand, blamed rising costs and lower consumer spending for the move.

It is the third time since 2018 that the company has been significantly downsized.

A deal has been struck to save 12 sites and around 365 jobs.

The remaining restaurants and staff will be transferred to a new company called Tristar Foods, operated by the existing owner Calverton, through what is known as a pre-pack administration.

Claire Winder, managing director at Interpath Advisory who acted as a joint administrator on the deal, said: "Like many other companies across the hospitality sector, Byron had seen a boost in trading following the end of the Covid lockdown measures.

But she added that "sky-high" inflation, which measures how costs change over time, had seen customers reduce their spending, and pressure increased on the business in turn.

The wider casual dining sector has been hard hit since the pandemic emerged in 2020.

A BBC analysis of corporate insolvency notices found that 320 businesses in the food service industry - restaurants, pubs, cafés and catering firms - were forced to initiate insolvency procedures in December.

This was an increase of 41% compared to the same month in 2019, before the Covid-19 pandemic. In total, 6,613 hospitality firms have started insolvency proceedings since 2020.

However, Byron Burger was already experiencing problems five years ago when it employed around 1,800 staff and operated 67 restaurants across the UK.

In July 2020, it shut more than half of its remaining 51 sites and cut 650 jobs.

Interpath said that over the past year the company had faced "significant challenges", driven by rising costs "principally food and utilities, together with a reduction in customer spending as a result of the current cost-of-living crisis".

The rate of price rises, or inflation, is currently at a 40-year-high fuelled by surging energy costs for both businesses and households.

Interpath added: "Following an exploration of a number of options to safeguard the future of the business, no solvent offers were forthcoming, and the directors took the difficult decision to file for the appointment of administrators."

The administrators stressed that although they were pleased that they had managed to save a number of jobs, they would also be providing support to those who are being made redundant.