TMR Capital eyes bid for Restaurant Group’s Frankie & Benny’s division

Activist investor TMR Capital is reportedly eyeing a bid for a group of hospitality brands, including Frankie & Benny’s, owned by The Restaurant Group.

TMR, which has a 1.75 per cent stake in TRG, has been pushing for a break-up that will allow the chain to accelerate the expansion of its flagship brand Wagamama. 

Now it is considering a bid for TRG’s ‘leisure’ division – which includes Frankie & Benny’s and Chiquito – as well as its Brunning & Price pub operation, The Sunday Telegraph reported.

Together the two divisions operate more than 100 sites in the UK. 

A price has not reportedly been discussed but analysts suggested a ‘knockout’ offer would be around £200m.

A sale would leave TRG with just Wagamama, the Asian-themed chain it bought in 2018, and the pubs it operates in airports and railway stations.

TRG did not comment on the possible bid but said it would continue to review ‘wider strategic options’.

The group is in the process of closing 35 sites in its leisure division – which is underperforming compared to other parts of the business.

A trading update last week showed first half sales in that part of TRG fell 4 per cent while Wagamama saw 5 per cent growth.