Little Chef restaurant chain sold to new owners

Little Chef

The company that paid £15m to acquire Little Chef four years ago has now sold the business off following its restructuring of the chain.

Kout Food Group (KFG) stepped in to save the brand in 2013 when other potential rivals in the quick-service space, including McDonald’s, KFC and Costa, reportedly planned to rebrand the sites.

But it has now offloaded the business to Euro Garages after carying out a number of refurbishments and opening 45 Burger King and Subway units on some of the sites.

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Euro Garages is understood to have bought all of Kout’s Little Chef sites, but not the Little Chef brand. The deal covers 78 sites and includes usage rights to the Little Chef and related brands.

Kout told the media in a statement: “As part of its commitment to the communities in which it operates, KFG has ensured continued employment for all its roadside employees and is confident that Euro Garages will continue to develop the strength of the people and roadside brands as well continue to serve their road side customers.”

Euro Garages was founded in 2001 by brothers Mohsin and Zuber Issa with the acquisition of a single petrol filling station in Bury, Greater Manchester.

Since then, Euro Garages has established itself as one of the UK’s fastest growing and most recognisable forecourt operators, with an expanding portfolio of 341 freehold-owned sites located throughout mainland UK.

The acquisition of the Little Chef business is part of its strategy to obtain and develop strategically-positioned sites in a bid to consolidate its position as a leasing roadside retail operator.

Tags : acquisitionEuro GaragesKout Food GroupLittle Chef
Andrew Seymour

The author Andrew Seymour

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