Gusto Faces Collapse as UK Dining Sector Crisis Deepens

Published: 29 July ‘2025. The English Chronicle Desk

The escalating crisis within the UK’s casual dining industry has taken another victim as Gusto, a well-known Italian restaurant chain, edges towards administration. Informed sources indicate that the restaurant group is set to enter a pre-pack insolvency arrangement, with preparations currently underway under the advisory of Interpath.

Operating from 13 sites across the country, Gusto has struggled to withstand the mounting financial strain that has crippled much of the mid-tier hospitality sector. The anticipated restructuring comes amid widespread concern over the viability of numerous high street restaurant brands, many of which have been battered by rising costs, changing consumer behaviour, and the lingering aftershocks of inflation and pandemic-era debt.

According to industry insiders, a significant portion of Gusto’s locations may be salvaged through a takeover deal led by Cherry Equity Partners—the current owner of Cabana, a Latin American-themed dining chain. A special purpose vehicle has been formed by Cherry Equity to facilitate the acquisition, and while most sites are expected to be retained, some job losses now appear unavoidable.

Though no formal announcement has yet been made, the deal could be finalised within days, underscoring the pace at which Britain’s casual dining landscape continues to unravel. The ongoing wave of insolvencies has raised urgent concerns about employment stability across the hospitality sector, with Kate Nicholls, head of UK Hospitality, recently warning of a looming “jobs bloodbath” unless conditions improve.

The turmoil has also created a surge of interest from investors and industry veterans looking to capitalise on distressed assets. Earlier this week, Sky News reported that David Page—former PizzaExpress chief and a key figure in the UK’s dining evolution—is actively raising £10 million to acquire struggling restaurant groups at bargain prices. Page is set to take over as executive chairman of the London-listed group Tasty, which owns Wildwood and dim t, with plans to rebrand it under the new name, Bow Street Group.

A share placing to secure funding for this initiative is expected to be completed imminently, highlighting the rapidly shifting fortunes of a sector in which survival now increasingly depends on strategic reinvention and aggressive investment.

For Gusto, the path ahead remains uncertain. While the proposed buyout offers a measure of continuity for parts of its business, it also signals a painful restructuring process that may spell the end for several of its locations and numerous employees. More broadly, it is yet another stark reminder that the UK’s once-thriving casual dining sector is now navigating one of the most challenging periods in its history—a moment defined not by culinary innovation, but by survival.