Fulham Broadway's Gourmet Burger Kitchen Faces Closure
Restaurant among 17 judged 'unviable' by struggling chain
Fulham Broadway's Gourmet Burger Kitchen is among 17 restaurants earmarked for potential closure after the chain initiated a Company Voluntary Arrangement, or CVA, which allows companies to close unprofitable branches and renegotiate expensive leases with landlords.
A CVA is a step short of going into administration and is a route that has been taken by a number of struggling restaurant chains recently including Carluccio’s, Jamie’s Italian and rival burger chain Byron.
The restaurants categorised as 'unviable' even after rent reductions include Fulham and Soho, plus 15 other sites across the country.
Altogether this could affect 250 staff members, though the chain says it would make every effort to relocate them.
Nearby restaurants which are not included on the list include Westfield, Putney, Earls Court and Chiswick.
Gourmet Burger Kitchen, which is owned by South Africa's Famous Brands, GBK operates about 80 restaurants in the UK and employs 2,000 people.
Last month, it admitted the chain admitted to a £47 million loss amid tough trading conditions.
Managing director Derrian Nadauld said the chain faced a "challenging casual dining" market and its rental payments were too high.
"We are having to take tough but necessary actions to reduce our fixed cost base and restore long-term profitability," he said. "This will provide greater security for our staff, suppliers, landlords and customers."
The company say that none of the 17 branches will close immediately, but have not provied any more details.
If the closure of the Fulham restaurant goes ahead, it will be another blow for the Broadway, which has had a tumultuous year with a number of restaurants shutting up shop, including Del Aziz, The Elk Bar and Subway. Its biggest loss meanwhile has been the M&S Foodhall on Fulham Island, which closed in September.
However, there is better news at the end of 2018, with the arrival of Taco Bell, on the site two doors down from Gourmet Burger Kitchen, which was formally home to Chop Chop.
The Mexican fast food chain has confirmed it will open on 7 December, and other new restaurants are also in the pipeline.