The company, which also has the Dim T chains, has secured a £750,000 loan agreement with Bet365 shareholder Will Roseff to fund the plans.
The loan will stabilise the company this year and help it to “meet new opportunities” in the sector in FY25, the business said in an update.
“Following a period of external challenges which have impacted the company’s business and trading performance, the Board has explored strategic and restructuring options available to it.”
Tasty currently operates 54 sites comprised of 43 Wildwood, six Dim-T branded sites, two non-trading sites and three sub-let sites.
The expectation is that the restructure would enable the company to exit 20 loss making sites, of which two are currently closed.
For the 53-week period ended 31 December 2023, the company expects to report revenue of approximately £46.9m, compared to £44m in 2022, alongside gross profit of £34.1m, compared to £31.4m in 2022, and an EBITDA loss of approximately £0.9m.
Tasty said that it had made reasonable progress since the year end and despite difficult recent trading conditions, management “continue to navigate through challenging times to mitigate cost rises and lower trading performance.”
“As previously reported, the cost-of-living crisis, transportation strikes, and interest rate rises continued to significantly impact FY23 revenue and inflationary pressure on labour, food and utilities continue to adversely affect profitability.
“It was added that financial performance has been inhibited by a tail of underperforming sites, despite efforts at improving operational performance”, the company added.
Following completion of the restructuring, the group would operate 30 profitable restaurants with FY 2024 EBITDA expected to be £0.3m.
Last year, Tasty said that it was considering rebranding some of its Wildwood restaurants under its Dim T concept, while other underperforming sites could be sold or surrendered.
