A popular Italian chain has announced it will be permanently closing two of its branches in south east London.

Prezzo’s Eltham and Sidcup restaurants are among 46 others that are set to close due to soaring energy prices and food costs.

The chain confirmed nationally about 810 workers are at risk of redundancy as part of the overhaul.

The shake-up will leave the hospitality chain with 97 restaurants and about 2,000 staff.

It added the closures will impact some high street sites as its portfolio shifts more towards those “in better locations to cater to changing consumer habits” such as shopping centres, retail parks, and tourist destinations.

Staff were informed about the closures on Monday morning, with a consultation process launched.

Prezzo said it will work to redeploy “as many staff internally as possible” and will support others in new opportunities.

The restaurant group added that costs have leapt over the past year, with its utility bills more than doubling and double-digit wage inflation.

Dean Challenger, chief executive of Prezzo, said: “The last three years have been some of the hardest times I have ever seen for the high street and I’m extremely proud of the way our colleagues have retained Prezzo’s position as an appealing, trusted, great value food and drink experience.

“But the reality is that the cost-of-living crisis, the changing face of the high street and soaring inflation has made it impossible to keep all our restaurants operating profitably.

“We believe the tough decisions we are making today will ensure Prezzo can continue serving communities with high-quality, accessible Italian-inspired meals for many more years to come.”

This closure plan comes two years after the group previously shut 22 restaurants and cut 216 jobs.