Little Chef brand name may vanish from roadside

Bidders, thought to include McDonald’s, KFC and Costa Coffee are not expected to retain the brand, after turnaround firm Rcapital put it up for sale. Its headquarters was recently moved from Sheffield to Norfolk.

Little Chef has gone through a deep overhaul – including a menu revamp by celebrity chef Heston Blumenthal – since it plunged into administration in 2007 and was bought by the London-based private equity group.

But Rcapital said while the chain, famous for its chubby chef logo and “Olympic” breakfasts, has returned to profit, diners have “voted with their feet” and increasingly choose to eat at rival fast food chains.

Rcapital said: “The aim of the sale was to find a buyer that would take the business and the brand on to the next stage. However the market is changing and fast food and coffee houses are growing in popularity.

“It is not a surprise that the majority of the offers for Little Chef are from companies that may want to re-brand the estate.

“Rcapital has a deep affection for the Little Chef brand and it is hoped that some Little Chefs will remain on Britain’s A roads even if some sites are re-branded.”

Rcapital said national and international groups are circling the chain. It declined to say what Little Chef could be worth.

The Little Chef chain started life as an 11-seat restaurant in Reading, Berkshire, in 1958 and had a string of owners including private equity group Permira.