PREZZO SHUT DOWN
The ‘loss making’ locations of Prezzo restaurants will be shut down across the country, starting with the Buckingham location. This action is part of a larger corporate strategy.
It has been stated that the Italian restaurant company has now closed 46 locations, which will put 810 people’s jobs in jeopardy of being eliminated.
After these closures, the hospitality chain will have a total of 97 restaurants and approximately 2,000 employees. On Monday 24th of April, employees of Prezzo were provided with information regarding the closures, and a consultation process was initiated.
“The last three years have been some of the hardest times I have ever seen for the high street,” said Chief Executive Officer Dean Challenger. “I’m extremely proud of the way our colleagues have maintained Prezzo’s position as an appealing, trusted, and great-value food and drink experience.”
“However, the fact of the matter is that the rising cost of living, the shifting demographics of the high street, and the skyrocketing inflation have made it difficult for all of our restaurants to continue running at a profit.
“We believe that the challenging decisions that we are making today will ensure that Prezzo can continue providing communities with high-quality, easily accessible meals that are inspired by Italian cuisine for many years to come,”
Prezzo has stated that it will make efforts to repurpose “as many staff members internally as possible” and will assist others in pursuing new opportunities. The organisation reported that over the course of the previous year, its expenses had grown, with its utility prices more than doubling and pay inflation reaching double digits.
The chain has also been damaged by rising food inflation, which reached a 45-year high last month. Prezzo witnessed a 40% increase in the cost of spaghetti, 28% increase in the cost of pizza sauce, and a 15% increase in the cost of its dough balls as a result of the rising food inflation.
BY Rukevwe Avworo