Famous Brands, the parent company of Gourmet Burger Kitchen, has said it will no longer continue to fund the ‘better burger’ chain, according to industry magazine Big Hospitality. Gourmet Burger Kitchen (GBK) currently has 60 or so restaurants around the UK, including one in Chiswick High Rd.
Famous Names bought GBK in 2016 for £120 million, but there has been a decline in ‘casual dining’ over the past couple of years, and with restaurants now shut because of the Coronavirus, the chain now faces an uncertain future. Business analyst Anthony Clark told Big Hospitality that Famous Brands’ decision not to spend money on GBK meant the business would not survive.
“When you withdraw funding for a struggling business it is signalling its death knell”.
That is the second big hospitality company to pull the plug on a chain with a branch in Chiswick High Rd since pubs and restaurants closed on 20 March. The owners of the Roebuck went into administration just over two weeks ago.
The National Institute of Economic and Social Research (NIESR) think-tank has suggested that 25% of the UK economy could be lost by the summer due to the Coronavirus lockdown.
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