Prezzo Restaurant Chain to Close 46 Locations: What It Means for the Company and the Industry

Prezzo, an Italian restaurant chain, is set to close 46 of its sites due to rising energy and food costs, leaving approximately 810 workers at risk of redundancy. The closures are part of a broader strategic review and will mainly affect loss-making sites where the post-Covid recovery has been challenging.

Prezzo will focus on locations in better areas to cater to changing consumer habits, such as shopping centers, retail parks, and tourist destinations. The shake-up will reduce the number of restaurants to 97 and staff to around 2,000. The company will work to redeploy as many staff as possible and support others in finding new opportunities.

Prezzo cites doubling utility bills, double-digit wage inflation, and soaring food inflation as major contributors to its financial struggles. Dean Challenger, Prezzo's CEO, acknowledged the cost-of-living crisis and the changing face of the high street and stated that tough decisions are necessary to ensure Prezzo's survival.

The closure plan follows a similar move two years ago when the company shut 22 restaurants and cut 216 jobs.