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Restaurant chain Cote mulls site closures in 'very challenging' sector

Restaurant chain Cote is lining up site closures after becoming the latest firm in the casual dining space to fall foul of bitter trading conditions.
The group is weighing up options for a small number of Jackson + Rye and Limeyard restaurants, as it struggles with the “well documented headwinds” in the restaurant sector.
It said some sites have already been closed or sold, but the core Cote brand “continues to perform well”.
Cote, which is inspired by French cooking, is the latest name in the casual dining sector to succumb to site closures.
Burger chain Byron, Jamie’s Italian and Prezzo have all embarked on restructuring drives known as company voluntary arrangements (CVA), a type of insolvency which allows companies to close underperforming sites and slash rents.
Restaurant chain Cote mulls site closures in 'very challenging' sector

Restaurant group Jamie's Italian had to close sites as part of a far-reaching restructuring drive

Credit:
Chris J Ratcliffe/Getty Images
Restaurant groups are struggling to stomach the cocktail of pressures engulfing the industry, as margins are gobbled up by rising business rates, the National Living Wage, the apprenticeship levy and persistently high inflation.
However, Cote is unlikely to push ahead with a CVA and will look to rebrand or dispose of sites instead, according to Sky News.
Cote was launched eleven years ago, with private equity firm BC Partners snapping up a majority stake in 2015.
It has 90 sites across the UK employing around 3,400 staff, including two Limeyard restaurants and four Jackson + Rye restaurants. 
A spokeswoman for Cote said: “In some instances we have closed or sold outlets and we are working hard to find viable options for others while continuing to support those that are trading well.
“Our Cote restaurants continue to perform well which is a testament to the strength of that offer in what remains a very challenging environment.”
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