The restaurant chain The Real Greek, which has 28 outlets across the UK, could be set to close, after the company that owns it said cost pressures had made the business unsustainable.

The Japanese restaurant group Toridoll, which owns the chain’s parent company Fulham Shore, said it planned to appoint administrators.

Fulham Shore also owns the Franco Manca chain but Toridoll said The Real Greek had suffered more than the pizza chain from the “deterioration in the economic environment”.

Toridoll bought Fulham Shore in 2023.

“In recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increase in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated,” Toridoll said, announcing the decision.

However, it is thought that Karali Group, which owns the Cote Brasserie chain, may be interested in buying some of the restaurants.