The Restaurant Group has warned that sales may halve over the first six months of 2020, due to the outbreak of coronavirus.
The FTSE 250-listed group, which owns restaurant chain Wagamama and Frankie & Benny’s, told investors to prepare for a 45% plummet in sales for the first half of the year.
The update follows the government’s announcement on Monday to stay away from pubs and restaurants in an attempt to avoid spreading the virus.
The group revealed like-for-like sales over the past two weeks have fallen 12.5%. Now, the group plans to reduce capital expenditure by at least £45m, from £75m.
“In the last two weeks we have seen an increasing and material impact of Covid-19 across our businesses,” said a statement from the Restaurant Group.
“In particular, our concessions business has been significantly impacted with like-for-like sales down 21.7% and getting worse by the day given international travel bans.”