Fulham Shore Reports £14.2m Loss Amid Restaurant Closures and Leadership Shake-Up
The owner of Franco Manca and Real Greek, Fulham Shore, reported a £14.2m loss before tax for the year ending March 2025, according to Companies House filings. This marks a significant deterioration from the £5m loss recorded in the previous year, as the private equity firm grapples with restructuring and declining performance in its restaurant portfolio.
What Caused Fulham Shore’s £14.2m Loss?
Fulham Shore’s accounts reveal £11m in write-downs attributed to “adverse trading performance,” alongside £442,000 in restructuring costs. Despite a 72% revenue increase to £1.7m, the firm’s financial results were heavily impacted by these exceptional items. The losses followed a major restructuring in April 2025, which saw 16 Franco Manca locations, including its Brixton Market flagship, close and 225 employees laid off.
Marcel Khan, then CEO of Fulham Shore, blamed rising business taxes for the crisis, citing “disproportionately high” rates imposed on the hospitality sector. His resignation in May 2025 coincided with the firm’s decision to place Real Greek into administration, allowing it to focus on Franco Manca’s recovery.
How Is Fulham Shore Responding to Its Financial Challenges?
To fund its turnaround, Fulham Shore has taken on £21m in debt from Japanese restaurant group Toridoll and a £12m credit facility from HSBC. The firm’s new CEO, Colin Berry, emphasized progress in operational improvements, including “stronger shift execution and an enhanced guest experience.” However, he acknowledged the sector’s broader struggles, citing “elevated inflation and VAT rates significantly higher than international peers.”
Fulham Shore claims the restructuring has positioned Franco Manca for long-term growth, though the chain’s future remains tied to broader industry pressures. The firm’s decision to exit Real Greek aligns with a trend of hospitality companies scaling back amid rising costs and regulatory challenges.
What Does This Mean for the UK Hospitality Sector?
Fulham Shore’s struggles reflect a broader crisis in the UK hospitality industry, where rising business rates, employment costs, and VAT have forced firms to restructure or exit. Industry leaders, including chef Tom Kerridge, have lobbied for a VAT reduction from 20% to 10%, a measure supported by hospitality groups like Greene King and Hilton.
The sector’s challenges have also intensified political debates. Kerridge and others have backed Andy Burnham’s bid for Prime Minister, citing his pledge to cut business rates and VAT for hospitality firms. These pressures highlight the sector’s vulnerability to policy decisions and economic headwinds.
What’s Next for Fulham Shore and Franco Manca?
Fulham Shore’s focus remains on revitalizing Franco Manca, with plans to open new locations and improve profitability. However, the firm’s ability to recover will depend on macroeconomic conditions, consumer spending, and regulatory changes. Analysts note that the restaurant sector’s recovery is uneven, with chains reliant on premium pricing facing greater risks than value-focused operators.
As the industry navigates these challenges, Fulham Shore’s experience underscores the fragility of private equity-backed restaurant groups in a volatile market. The firm’s success in turning around Franco Manca could serve as a blueprint for others, but its current financial strain highlights the sector’s ongoing instability.