Prezzo to close 46 stores with 810 staff at risk of redundancy

Staff were informed about the closures on Monday morning with Prezzo saying around 810 workers are at risk of being made redundant as part of the overhaul.

This morning's announcement comes just two years after the group shut 22 restaurants and cut 216 jobs.

Bosses at the Italian restaurant chain said the cuts, which are part of a broader strategic review, will affect sites where “the post-Covid recovery has proved harder than we had hoped”.

The shake-up will leave the hospitality chain with 97 restaurants and about 2,000 staff.

This is... Italian flavours in full bloom 🌼

From our creamy Burrata with sun-blushed tomatoes and pesto to our Chicken, Avocado & Bacon Salad - embrace spring with refreshing plates bursting with seasonal flavours. pic.twitter.com/McNdTXqHHC

— @love_prezzo (@love_prezzo) April 16, 2023

Prezzo bosses added the closures will impact some high street sites as its portfolio shifts more towards those “in better locations to cater to changing consumer habits” such as shopping centres, retail parks and tourist destinations.

A consultation process has been launched following the announcement.

Prezzo said it will work to redeploy “as many staff internally as possible” and will support others in new opportunities.

Chief executive of Prezzo, Dean Challenger, said: “The last three years have been some of the hardest times I have ever seen for the high street and I’m extremely proud of the way our colleagues have retained Prezzo’s position as an appealing, trusted, great value food and drink experience.

“But the reality is that the cost-of-living crisis, the changing face of the high street and soaring inflation has made it impossible to keep all our restaurants operating profitably.

“We believe the tough decisions we are making today will ensure Prezzo can continue serving communities with high-quality, accessible Italian-inspired meals for many more years to come.”

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The restaurant group said costs have leapt over the past year, with its utility bills more than doubling and double-digit wage inflation.

It has also been impacted by soaring food inflation, which hit a 45-year high last month, with Prezzo witnessing a 40% increase in the cost of spaghetti, 28% rise for pizza sauce and 15% increase in the cost of its dough balls.

It has been a turbulent few years for the restaurant chain. 

On top of the more recent closures and cuts, in late 2020 Prezzo fell into administration after the heavy impact of the pandemic, before being snapped up by current private equity owners Cain International.