City investors and analysts who have balked at the suggested valuations restaurant chains Gaucho Grill and Wagamama, which are preparing for sales. The Daily Telegraph

Gaucho has valued its 11-strong leasehold chain at £10.5m a restaurant (including debt).

Douglas Jack, a leisure analyst witath Panmure Gordon, said: ‘Gaucho Grill is being valued at about £10m a restaurant – versus a £1.5m build cost – for a brand with a £49 average spend per head, a mixed track record and questionable scope for expansion.’

Wagamama, the Japanese fast-food chain owned by private equity group Lion Capital, has also been criticised for a high valuation. It has 51 sites in the UK and two in the US, is expected to launch a £200m flotation as early as this week.