WHAT'S THE FUTURE FOR ROADSIDE DINERS?

4th May 2007, 10:28am

Industry eyes are on Little Chef, the rescued roadside diner that went into administration – along with parent company The People's Restaurant Group - with reports that the 230-chain operator was losing £3 million a year.

The future for most of the 4000 staff seemed safe after turnaround specialist R Capital negotiated a deal to acquire the 196 sites for less than £10 million - excluding those owned by Israeli property group Arazim.

The chain - famous for its Olympic breakfast and Fat Charlie logo - was acquired in October 2005 by Simon Heath and Lawrence Wosskow for £52 million. They then raised £59 million by selling its freehold outlets but have denied high rentals caused problems. One setback was that Wosskow suffered ill health last summer.

* RoadChef owners Nikko Capital Investors, has been in talks with Delek - an Israeli multinational - over the sale of the business, including £400 million in equity and £50 million in debt.

The motorway operator with 29 sites including Wimpy burger bars and self-service restaurants, made a £3.2 million pre-tax loss in the year to September 2005, compared with £4.2 million profit the previous year.

* The moves follow the sale of the 43 Moto chain for £600 million to Macquarie, the Australian infrastructure group from Compass last April. The operator that features Marks & Spencer Simply Food stores is investing £30 million in refurbishments.

* Motorway service operator Welcome Break has opened its new 40-bed Days Inn. Bridgend-Cardiff (M4) after a £400,000 project.

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• 30 Jun 2009 - Little Chef boss to do spin-off programme