Sales still falling at struggling Restaurant Group

The Restaurant Group said like-for-like sales fell 1.8 per cent in the 20 weeks to May 21, with total sales declining 1.5 per cent.

However, the figures mark an improvement on the fourth quarter, which saw like-for-like sales drop 5.9 per cent.

The company, which is also behind Garfunkel's and Chiquito, has been closing under-performing restaurants and rejigging menus as part of a turnaround attempt under chief executive Andy McCue.

Both Frankie & Bennys and Chiquito have restaurants in Walsall and Dudley. There is also a Chiquito at Bentley Bridge, in Wednesfield, and Frankie & Bennys at the intu Merry Hill shopping centre, in Kidderminster, Stafford and in Lichfield.

The Restaurant Group said the implementation of its strategy was 'progressing well', while also pointing to favourable weather which helped sales at its pubs business, Brunning & Price, which owns the Inn at Shipley, near Wolverhampton, The Oakley Arms at Brewood and The Red Lion at Longdon Green, near Rugeley.

In a trading update, the firm said: "2017 is a transitional year. We continue to address the competitiveness of our leisure businesses and are focused on achieving a sustainable volume-led turnaround.

"Where opportunities to accelerate our progress present themselves, we will invest appropriately."

The company has admitted it has lost value-conscious customers at Frankie & Benny's after significant price hikes and the firm has previously pledged to "look at the pricing architecture of the menu" and "reinvigorate the value offer" in a bid to attract more families to its outlets.

The Restaurant Group posted a pre-tax loss of £40 million last year after being stung with a £117 million exceptional charge linked to restructuring efforts.

On Friday the company said it expects profits for this year to meet market expectations.

The Restaurant Group operates more than 400 restaurants and pubs and it is also behind Coast To Coast and Joe's Kitchen.