Prezzo bosses will roll out a new layout and design across the chain’s top-performing restaurants if creditors agree to restructuring proposals later this month, it can be revealed.
The company plans to close 94 restaurants and is seeking rent reductions on others as part of a Company Voluntary Arrangement announcedlast week.
The CVA also details how it intends to move forward if creditors vote in favour of the proposals, with the focus on a ‘transformation plan’ that includes four core pillars dedicated to brand, food, people and estate.
In order to establish a strong core estate, restaurants are being redesigned by adopting what directors describe as a “new look and feel model”. It is envisaged that the top-performing restaurants will have a new layout and design aligned to brand identity, refurbishment and maintenance, according to the CVA document seen by FEJ.
While the transformation plan is only in its early stages, “significant” improvements in cover growth, reduced team turnover, customer satisfaction, cost control and revenues have been recorded in restaurants that have been revamped already, the chain claims.
In addition, Prezzo initiated a cost savings initiative last year that delivered £10m of annualised cost savings in 2017, allowing for further capital investment in core sites.
However, the directors warned that sales and market share are likely to continue to decline until further investment can be made in restaurants and the estate rationalised.
“The CVA will give the company the ability to rationalise the restaurant portfolio by exiting restaurants that are unprofitable, securing rent reductions where restaurants are over-rented or can be made viable with a rent reduction, and facilitates negotiations with landlords of restaurants that have leases containing onerous terms,” they stated.
Earlier this week we revealed that the company’s debts currently total £220m, with almost £165m owed to unsecured trade suppliers.
Prezzo will be left with a portfolio of around 200 restaurants in the UK if its restructuring proposals are implemented.