The owner of pizza chain Franco Manca has announced it is going to slow its expansion plans following a profit warning.
Fulham Shore, which also owns the Real Greek, opened 13 restaurants in the financial year so far and has two more in the pipeline but has now decided to reduce its openings.
It saw its shares drop by 20% after the company issued a profit warning and said it expects its earnings before interest, tax, depreciation and amortisation to be below market expectations.
It said this is attributed to its outer London restaurants, which the company has previously said are underperforming.
In a statement, the company said: “We are operating in an uncertain economic outlook for both the UK and the restaurant sector in particular.
“As a consequence, we will bring forward our plans only to fund new restaurant openings from our internally generated free cash flow by reducing the number of new restaurant openings for the coming year.
“We will also choose those locations that we believe will give us above average returns and sensible property deals.”
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