The restaurant chain The Real Greek, which has 28 outlets across the UK, could be set to close, after the company that owns it said cost pressures had made the business unsustainable.

The Japanese restaurant group Toridoll, which owns the chain's parent company Fulham Shore, said it planned to appoint administrators.

Fulham Shore also owns the Franco Manca chain but Toridoll said The Real Greek had suffered more than the pizza chain from the "deterioration in the economic environment".

Toridoll bought Fulham Shore in 2023.

The chain, which was founded in London in 1999, says its aim is to "take you to Greece" with its blue and white decor, down-to-earth atmosphere, and hummus and moussaka-laden menu.

Nearly half of its "tavernas" are in London, with the rest spread between Scotland and the rest of England.

A statement from the chain's Japanese owners echoed warnings from hospitality industry bodies in the UK, which have pointed to increasing pressure from rising business rates, energy and labour costs.

Toridoll said: "In recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increase in labour costs resulting from rises in the minimum wage, have created a more challenging operating environment for the hospitality industry than initially anticipated."

However, it is thought that Karali Group, which owns the Cote Brasserie chain, may be interested in buying some of the restaurants.

Two weeks ago Fulham Shore said it was closing 16 of around 70 Franco Manca restaurants across the UK as part of a company voluntary arrangement, or restructuring plan, blaming "disproportionately high" UK taxes, including business rates.

Fulham Shore chief executive Marcel Khan said at the time: "Even restaurant businesses that are doing all the right things from a customer and operational perspective are not immune to widely publicised pressures impacting the hospitality industry."