Cafe Rouge owner brings in restructuring expert to negotiate lower rents

Cafe Rouge owner Casual Dining Group has engaged a restructuring specialist to negotiate lower rents with landlords, the company revealed today.

The group, which also owns restaurant chains Bella Italia and Las Iguanas, has hired Alvarez & Marsal to drive down prices as the group struggles in a "tough operating environment".

The casual dining sector has been hit by rising rent and staffing costs and increasing overextension in the market, as pre-tax profits at the UK's top 100 restaurants have fallen by 80 per cent to £37m over the course of a year, according to data from accountancy network UHY Hacker Young.

In the latest available set of Casual Dining Group accounts the company reported a £60m loss.

A spokesperson for the group said: "Like many other businesses we are facing a tough operating environment, and are focused on reducing costs where possible. 

"A small number of our sites are loss-making due to high rents and rates, and we are taking action to ensure the core business is in good shape for future growth. Talking to landlords is commonplace and good business practice."