Shares across the restaurant sector were hit today after Tootsies owner Clapham House Group said dampened consumer spending and higher costs will knock its performance this year and next.
The group, which also owns the Gourmet Burger Kitchen and the Real Greek chains, warned growth would be “significantly” below expectations for the years ending March 2008 and 2009, sending shares diving by more than 46%.
An uncertain economic outlook, potential food price hikes and lower consumer confidence were expected to hit results, according to the group.
Shares across the restaurant sector fell as Clapham House spelled gloom for casual dining firms.
Frankie & Benny’s and Garfunkel’s parent The Restaurant Group saw the value of its shares dive 12%, while Italian chain Prezzo’s shares dropped 9%.