Paddy Power boss takes over The Restaurant Group after CEO ousted

Andy McCue the former head of bookmaker Paddy Power will start in September

The company owns Frankie and Benny’s restaurants among other well known brands (PA)

The Restaurant Group has ousted chief executive Danny Breithaupt, bringing in the former head of bookmaker Paddy Power to replace him after a year of turmoil at the UK owner of Frankie & Benny’s eateries.

Mr Breithaupt will leave immediately, only two years after being appointed to the top job, the London-based company said in a statement Friday.

His successor, Andy McCue, will start on September 19.

The ousting of Mr Breithaupt follows the completion of the first phase of a strategy review that started in April.

The board decided a new leader is needed “to implement the initial actions and then prioritise the next phase of the review,” the company said.

Mr Breithaupt worked at the Restaurant Group for 15 years.

Mr McCue, who led Paddy Power for two years prior to its merger with Betfair, will be charged with reviving the Restaurant Group, which in April forecast another hit to profits amid deteriorating sales.

After more than a decade of consistent revenue and earnings growth, the company is stumbling amid increased competition from rival dining chains and a drop in visitors to UK retail parks, where many of its outlets are located.

Chief financial officer Stephen Critoph also left in April after 11 years at the company.

The Restaurant Group’s shares have plunged 45 per cent in the past year, compared with a 4.7 per cent gain in the FTSE All-Share Index.

The company has a market value of £757.6m. The company will report first-half earnings and provide a strategy update on 26 August.

© Bloomberg