Franco Manca has taken aim at “disproportionately high” taxes facing the hospitality sector after the pizza parlour shut 16 restaurants in a structural overhaul. The privately-owned restaurant chain said it is suffering from high VAT and “significant” hikes to national insurance and minimum wages, with the site closures to cost
Felix Armstrong
Wednesday 15 April 2026 1:29 pm | Updated: Wednesday 15 April 2026 1:33 pm
Franco Manca has taken aim at “disproportionately high” taxes facing the hospitality sector after the pizza parlour shut 16 restaurants in a structural overhaul.
The privately-owned restaurant chain said it is suffering from high VAT and “significant” hikes to national insurance and minimum wages, with the site closures to cost hundreds of jobs.
The move adds Franco Manca to a growing list of UK hospitality firms that have been forced to scale back in recent years, blaming rising taxes, with businesses warning new April cost rises have added to their concerns.
Franco Manca, which was founded in London in 2008, is now owned by private equity firm Fulham Shore, which also runs The Real Greek chain of restaurants.
225 jobs on chopping block
Fulham Shore boss Marcel Khan said the pizza chain will enter a company voluntary arrangement (CVA) restructuring, which allows firms to agree with its creditors to pay back debts over time.
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The chain appointed advisors Alvarez & Marsal in February, with a sale of the brand reportedly on the table.
It is unclear which of Franco Manca’s 70 restaurants will be shut, but it is thought the move could cost as many as 225 jobs.
Khan said no restaurants are “immune” to the pressures facing the hospitality industry, even if they are “doing all the right things”.
He blamed hikes to national insurance and the national living wage for the pressures facing Franco Manca, as well as “disproportionately high VAT in the UK compared with Europe”.
Franco Manca owner blames tax burden
Khan also took aim at the government for refusing to offer targeted business rates relief to restaurants.
Read more Pizza king points to youth joblessness as restaurant group eyes takeovers
Chancellor Rachel Reeves was forced into handing pub owners a £300m emergency package to soften the blow of higher business rates, but excluded restaurants and hotels from the measures.
Khan said: “As a result of these external cost pressures, we have to make sure that we are putting our business on a sustainable footing for long-term growth and development.
“This is why we have taken the difficult decision to undertake a CVA for Franco Manca, which will see a minority proportion of our restaurants closing where they are no longer sustainable in this cost environment.
“We are deeply saddened by the closures of a minority proportion of our restaurants, and will support our affected team members throughout this process in every way that we can.”
Leon founder: Government ‘killing’ restaurants
Fulham Shore was bought by Japanese restaurant group Toridoll, which also owns European noodle chain Wok to Walk and Japanese udon chain Marugame Seimen, for £93m in 2023.
Last week, the founder of fast food chain Leon accused the government of “killing” the restaurant industry by saddling firms with taxes.
John Vincent, who founded the casual restaurant chain, bought the firm back last year, with the company announcing the closure of 20 restaurants shortly after.
The Leon owner said: “The high street is dead. I spoke to the guy that owns one of the biggest […] competitors of Leon. He said restaurants are done. Everyone knows restaurants are done.
“This is not the market that’s doing this. This is the government. It’s not the consumer that doesn’t want to eat in restaurants.”
Read more Leon founder: Labour ‘killing’ restaurant industry
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