Cafe Rouge owner, Casual Dining Group, reported a steep loss in profits in the year to May 2017, in another blow to the British high street.
The group said losses across the year at its dining locations such as Cafe Rouge and Bella Italia, increased 18 percent to £60 million.
The restaurant group attributed the stark decline in profits “due to consumer confidence levels and the broader impact on discretionary spending”.
Alongside Cage Rouge, Casual Dining Group (CDG) also operate La Tasca and Belgo chains.
However, its not all bad news for the restaurant operator. Last month CDG announced the launch of a delivery brand.
The delivery service will focus upon Cafe Rouge diner favourites such as croque monsieur sandwiches and burgers.
It is set to go live in the next coming weeks, as the brand looks to compete with online delivery offerings such as Deliveroo and UberEats.
However, amid rising costs and an uncertain economic climate, many restaurant chains across the UK have been suffering as of late, amid a persistently difficult trading environment.
Jamie Oliver’s Italian restaurant chain has also come under pressure in recent months.
Last month, Jamie’s Italian this month agreed creditors and landlords to shut 12 locations, alongside paying lower rent on others for a period of up to two years.
This comes amid Italian restaurant chain, Prezzo, announced the closure of up to a third of branches across the U.K.
Around 100 of its locations are set to close, alongside all of its Chimichango locations.
Restaurant chains across the U.K aren’t alone in facing mounting challenges as consumer patterns adapt in recent years.
Last month high-street retailers Toys R Us and Maplins both announced its fall into administration, after both stores failed to find a buyer.
High-street stores have been suffering from the marked drop in footfall in recent years, as shoppers increasingly turn to the ease of online platforms to make their purchases.