Karali Group Swoops To Save The Real Greek In Pre-Administration Deal

The Real Greek has been pulled back from the brink after Karali Group moved swiftly to acquire the majority of the Mediterranean restaurant chain’s estate.
The transaction secures the future of 19 of the chain’s 28 UK sites and protects 358 roles, though the deal comes at a cost — nine locations will cease trading permanently, resulting in 151 redundancies.

Karali Group, the operator that added Côte Brasserie to its portfolio last year, tabled its offer in the eleventh hour as the chain’s Japanese parent company Toridoll — owner of the wider Fulham Shore group — moved to appoint administrators. The speed of the intervention prevented what industry observers feared could have been a full collapse of the brand.

The closures affect restaurants in Spitalfields, Westfield London, Dulwich Village, Bristol, the Strand, Solihull, Gloucester Quays, Glasgow and Edinburgh. The remaining 19 venues will trade on under Karali’s stewardship.

Fulham Shore chief executive Marcel Khan acknowledged that the business had demonstrated improving trading dynamics since Toridoll’s acquisition of the group in 2023, describing what he called encouraging signs of momentum. However, he was candid about the weight of external pressures bearing down on operators across the sector.

“The sustained pressures facing the hospitality sector — including elevated cost inflation and a fiscal environment that continues to place UK operators at a disadvantage — present significant challenges,” Khan said, in comments widely reported following the announcement.

He added that the disposal to Karali allows Fulham Shore to sharpen its focus on expanding its Franco Manca pizza brand.

The Real Greek’s difficulties reflect a broader crisis gripping the UK’s casual dining sector. Toridoll pointed to surging energy and food costs alongside steep increases in staffing costs as the principal drivers behind the chain’s financial deterioration. Most recently filed accounts for the business recorded a pre-tax loss of £3.6 million.

The timing of the rescue follows closely on the heels of another significant contraction within the Fulham Shore estate. Just a fortnight ago, the group closed 16 Franco Manca sites, citing the burden of elevated business rates and tax liabilities as unsustainable in the current climate.

Khan offered a stark assessment of conditions facing the trade. “Even restaurant businesses doing all the right things are not immune to the pressures impacting the hospitality industry,” he warned.

The Real Greek was founded in London in 1999 and built its reputation on bringing an authentic Hellenic dining experience to British high streets, with a recognisable aesthetic and a menu anchored in traditional Greek and Mediterranean cuisine. Almost half its estate is concentrated in London, with further sites spread across England and Scotland.