Prezzo to close 46 restaurants as costs rocket - but Yorkshire sites to survive

Bosses at the private equity-owned businesses said the cuts, which are part of a broader strategic review, will affect sites where “the post-Covid recovery has proved harder than we had hoped”.

The shake-up will leave the hospitality chain with 97 restaurants and about 2,000 staff.

None of the company’s Yorkshire restaurants are included in the closure plan.

Prezzo said the closures will impact some high street sites as its portfolio shifts more towards those “in better locations to cater to changing consumer habits” such as shopping centres, retail parks and tourist destinations.

Prezzo said it will work to redeploy “as many staff internally as possible” and will support others in new opportunities.

The restaurant group said costs have leapt over the past year, with its utility bills more than doubling and double-digit wage inflation.

It has also been impacted by soaring food inflation, which hit a 45-year high last month, with Prezzo witnessing a 40 per cent increase in the cost of spaghetti, 28 per cent rise for pizza sauce and 15 per cent increase in the cost of its dough balls.

Dean Challenger, chief executive of Prezzo, said: “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.

“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.”