Boston branch of national restaurant chain closes

Prezzo has announced a strategic review of its business to focus on ‘better performing restaurants’, with a view to ensuring ‘long-term, sustainable growth’, it says.

The review will see the closure of 46 loss-making sites across the country, including Boston’s branch in Wide Bargate where 16 people are employed. As of today (Monday, April 24), the branch was closed. Across the 46 sites, 810 team members are affected.

The remaining Prezzo restaurant portfolio includes restaurants which are in ‘better locations to cater to changing consumer habits’ such as ‘shopping centres, retail parks, tourist destinations, and travel hubs’, the business says.

The company informed all affected colleagues today of the closures and launched a consultation process.

It says it will work to re-deploy as many staff internally as possible and will support others in finding new opportunities.

Dean Challenger, chief executive of Prezzo, 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. That is why we have made the difficult decision to close 46 sites where the post-Covid recovery has proved harder than we had hoped.

“We will work to find suitable alternative roles in other Prezzo restaurants for all those hard-working colleagues impacted by the announcement and support those who cannot be accommodated in finding new opportunities.”

“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.”

Prezzo has seen key costs rise in the past year, including more than doubling of utility bills which now represent nine per cent of total revenues as well continued inflationary pressures on core ingredients – dough balls +15 per cent, pizza sauce +28 per cent, diced mozzarella +18 per cent, spaghetti +40 per cent, and double digit wage inflation.

Customer numbers are ‘strong’ in high footfall areas but in other locations, remain below pre-pandemic levels, the business added.

After the closures, 97 sites would remain, with 2,000 staff employed.

The list of sites closing is:

Beccles

Billericay

Bolton

Borehamwood

Boston

Bracknell

Brentwood

Buckhurst Hill

Buckingham

Chichester

Chingford

Colchester

Corby

Didcot

Eastbourne

Egham

Eltham

Ely

Epsom

Fleet

Glasgow, St Vincent Place

Hailsham

Harpenden

Livingston

Lyndhurst

Maidstone

Mere Green

Mill Hill

Oxford

Plymouth

Redditch

Redhill

Rugby

Shepperton

Shirley

Sidcup

St Neots

Stowmarket

Tenterden

Tunbridge Wells

Weybridge

Whitstable

Wickford

Wimborne

Winchester

Woodford Green