UK’s Little Chef Goes From 439 Outlets To Zero Over Prices

Little Chef was started in 1958 by catering boss Peter Merchant and caravan manufacturer Sam Alper.

The business' decline was "gradual," according to Becky Parr-Phillips, who started working for Little Chef as a waitress in the 1990s, rising through the managerial ranks to become head of operations around 15 years later. I Photo: Tony oldroyd Flickr

The pair had witnessed the popularity of roadside diners on business trips to the United States and decided to bring their own version to the UK, Jon Douglas reported for BBC News.

Merchant and Alper opened their first Little Chef in Reading, Berkshire, in a tiny, pre-fabricated building with seats for just 11 customers.

Around a decade later, the company was bought by Trust Houses Ltd, which later became known as Trusthouse Forte after merging with Charles Forte's hotel and catering business.

In 1996, media conglomerate Granada acquired Trusthouse Forte and began opening Little Chef branches at its motorway service stations. Restaurant numbers peaked at 439.

The business' decline was "gradual," according to Becky Parr-Phillips, who started working for Little Chef as a waitress in the 1990s, rising through the managerial ranks to become head of operations around 15 years later.

The owners were keen to reduce costs and maximize profits as the chain still enjoyed something of a monopoly on roadside dining.

"There were closures, the prices were hiked, you know the guests did start to call it Little Thief rather than Little Chef," says Becky. The restaurant chain's owners, Granada, had merged with Compass Group before selling the Little Chef and Travelodge businesses to the private equity firm Permira.

By the time Lawrence Wosskow bought Little Chef from Permira in 2005, there were 234 restaurants left, and he says many of them were in need of refurbishment. Illness forced him to sell the business after only 18 months, and from there, the chain evaporated.