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| Little Chef to close 67 outlets costing around 500 jobs | Little Chef to close 67 outlets costing around 500 jobs |
| (40 minutes later) | |
| Motorway restaurant group, Little Chef, has announced it is to close 67 of its 161 outlets and make between 500 and 600 job cuts. | Motorway restaurant group, Little Chef, has announced it is to close 67 of its 161 outlets and make between 500 and 600 job cuts. |
| The firm has said the jobs being cut are a mix of full and part-time positions around the UK. | The firm has said the jobs being cut are a mix of full and part-time positions around the UK. |
| It is closing the restaurants because they are making a loss, it said. | It is closing the restaurants because they are making a loss, it said. |
| Little Chef blamed the weak economy and the location of the branches for their poor performance. It will leave the company with about 1,500 staff. | Little Chef blamed the weak economy and the location of the branches for their poor performance. It will leave the company with about 1,500 staff. |
| The company said it would work to find alternative employment where possible for those affected by the store closures. | The company said it would work to find alternative employment where possible for those affected by the store closures. |
| "We've got 161 sites, some very good, very profitable. Others suffer from a series of problems including high rents and demographic changes. I decided to make a strategic decision not to focus on those sites," Little Chef chairman Graham Sims told the BBC. | "We've got 161 sites, some very good, very profitable. Others suffer from a series of problems including high rents and demographic changes. I decided to make a strategic decision not to focus on those sites," Little Chef chairman Graham Sims told the BBC. |
| Overhaul | Overhaul |
| The group went into administration in 2007, after which the majority of its assets were bought by current owner, private investment business RCapital. | The group went into administration in 2007, after which the majority of its assets were bought by current owner, private investment business RCapital. |
| The company has had to respond to increasing competition from High Street supermarkets and coffee chains at service stations. | The company has had to respond to increasing competition from High Street supermarkets and coffee chains at service stations. |
| "Motorists' tastes have altered dramatically since the launch of Little Chef back in the late 1950s and they now expect far more than just sustenance, they require a whole customer experience, which their favoured High Street brands can offer," said, Tim Hipperson, CEO of marketing company G2 Joshua. | |
| Little Chef has responded by revamping its remaining branches. | Little Chef has responded by revamping its remaining branches. |
| In 2008, several of its branches were given an overhaul by celebrity chef Heston Blumenthal for a reality TV show. | In 2008, several of its branches were given an overhaul by celebrity chef Heston Blumenthal for a reality TV show. |
| The company has also rolled out its "new concept" model to its other branches. | The company has also rolled out its "new concept" model to its other branches. |
| Mr Sims, who joined the firm three months ago and used to head BP's UK retail division, says Little Chef will have to diversify to compete. | Mr Sims, who joined the firm three months ago and used to head BP's UK retail division, says Little Chef will have to diversify to compete. |
| "I can move Little Chef from being just a sit-down [restaurant] to one that combines sit-down with takeaway and also a retail offer. That sort of hybrid retail solution enables me to talk to other brands to bring them in to our properties." | "I can move Little Chef from being just a sit-down [restaurant] to one that combines sit-down with takeaway and also a retail offer. That sort of hybrid retail solution enables me to talk to other brands to bring them in to our properties." |
| Owners | Owners |
| Since its formation in 1958, the firm has been sold to a number of firms, including Granada and Compass. | Since its formation in 1958, the firm has been sold to a number of firms, including Granada and Compass. |
| Before entering administration, it was bought in 2006 by its then chief executive, Simon Heath, and the Peoples Restaurant Group. | Before entering administration, it was bought in 2006 by its then chief executive, Simon Heath, and the Peoples Restaurant Group. |
| Unions have criticised its current owners for failing to protect jobs. | Unions have criticised its current owners for failing to protect jobs. |
| "This is dreadful news for the employees in these restaurants due for closure," said GMB senior officer Paul Maloney. | "This is dreadful news for the employees in these restaurants due for closure," said GMB senior officer Paul Maloney. |
| Unions accused RCapital of selling Little Chef stores and then renting them back - increasing running costs at the business. | Unions accused RCapital of selling Little Chef stores and then renting them back - increasing running costs at the business. |
| However, Mr Sims denies the claim. | However, Mr Sims denies the claim. |
| "These sites were acquired by RCapital in 2007 and they were acquired as leaseholds. Someone before that had sold them and leased them back," he said. | "These sites were acquired by RCapital in 2007 and they were acquired as leaseholds. Someone before that had sold them and leased them back," he said. |