Strada closes 11 branches due to ‘disappointing trading and rising costs’

by XPRESS, 23 February 2018

London branches in Camden, Clapham and Blackheath have closed, as well as branches in Harpenden, Hertfordshire; Newbury, Berkshire; Horsham, West Sussex; Henley, Oxfordshire; Cardiff, York and Cobham, Surrey since Christmas.

The Birmingham Mailbox branch will also cease trading at the end of this week.

In a statement Strada said: “Following a comprehensive review, it is with regret that we are closing a number of our Strada restaurants, as they are no longer viable as Stradas in this increasingly competitive market.

“Where possible, we are converting the sites to new formats or selling them to other operators, but in some cases, recent increases in rents and rates, coupled with government-decreed rises in wage costs, make it very difficult to operate profitably a full service restaurant serving fresh food.”

A spokesman for Strada told The Caterer that staff had been offered positions in other branches where possible.

Hugh Osmond’s Sun Capital had acquired 43 Strada restaurants from Tragus Group for £37m in 2014.

The spokesman said that three of the branches closed this week would be converted into other brands owned by the group.

The restaurant brand added: “With the increasing popularity of Coppa Club, we shall be accelerating our opening program over the coming year and will also be investing in our remaining Strada restaurants in order to ensure their continuing success.

“We hate closing restaurants and so this has been a difficult decision. We also appreciate that this will be a tough time for our team members and local communities alike.”

According to Strada’s website 16 branches will remain following the closure of Birmingham Mailbox later this week.

Article Credit: The Caterer