Frankie & Benny’s back in profit as revamp launched

The boss of New York Italian chain Frankie & Benny’s has revealed the group is set to return to annual profit after a swingeing overhaul to get the business back on track.

Debbie Husband, managing director of Frankie & Benny’s (F&B), said the once loss-making restaurant business had already swung to a £4 million profit so far in its financial year to October thanks to a major revamp and cost-cutting efforts.

The group is now unveiling what it claims is the biggest brand refresh in its near-30-year history, with a new menu rolled out across all sites this week boasting 38 new dishes and a launch into the popular brunch market.

It comes a year after F&B and sister chain Chiquito were sold to Bella Italia owner The Big Table Group – a deal which saw former owner The Restaurant Group pay £7.5 million in cash for Big Table to take the loss-making business off its hands.

Ms Husband told the PA news agency: “Over the last year we have stabilised the business and got the engine ticking well, now it is about driving awareness and connecting with customers so we can drive growth and move forward.”

She said the initial priority was to get the business on to a stable footing, with F&B “haemorrhaging” cash when Big Table first took it on.

Big Table has not shut any of the 57 F&B sites it acquired but she revealed it has cut around 200 roles, through staff turnover, and also reduced some staff hours.

At the same time, the group has increased opening hours for some sites to take advantage of breakfast trade.

F&B now employs just under 2,000 workers, down from about 2,200 when Big Table first bought the chain.

Ms Husband said Big Table faced the challenge of reinvigorating the brand after a series of closures in recent years that saw the estate slashed from about 260 sites at its peak to under 60 now.

“The brand was unloved it hasn’t been appraised for quite some time,” she said.

She said the group had a “very strong heartbeat” but needed to reconnect with customers.

“The feedback was loud and clear that there’s a very strong resonance with F&B and people talk about it fondly,” according to Ms Husband.

F&B is now aiming to go back to its roots from when it first launched in 1995, tweaking old favourites but also launching a new brunch offering featuring dishes such as loaded New York bagels and stacked pancakes.

The brunch menu has been trialled in three sites – London, Newcastle and Bristol – before this week being made available at sites nationwide.

Restaurant staff have each been given six hours of training on the menus and dishes, with a new uniform across its teams and digital boards outside some venues to help give restaurants a new look and feel.

But the turnaround plan comes against a tough background for casual dining, which is under pressure from an ongoing consumer spending clampdown, rising costs and intense competition.

The woes at rival chain TGI Fridays, whose operating company recently collapsed into administration, highlight how difficult the market is.

Ms Husband said F&B’s sales have yet to return to growth but are improving.

She is hoping the new push will breathe life back into the brand with a view to growing the chain again in the future.

She said: “I’d like to think we can prove that F&B has potential… and not just across 57 sites.

“Personally I’d love to be able to grow the brand.”