TLLC Group Holdings has today sold the Little Chef chain of roadside restaurants to the People's Restaurant Group (PRG) for £52m.

According to a spokesperson for PRG, the 233-strong Little Chef estate will continue to trade under its brand name.

The chain had been up for sale since November 2004, when TLLC, part of the Permira Group which also owns the Travelodge hotel chain, decided to cut its losses and concentrate on the Travelodge brand.

In recent years, Little Chef has struggled to compete against the increasing popularity of convenience food outlets and the expansion of garage forecourts.

PRG, which was set up by entrepreneurs Simon Heath and Lawrence Wosskow solely for the purposes of the deal, took over the ownership of the entire estate – including the 113 sites co-located with Travelodge hotels – and immediately introduced price cuts across the menu.

Simon Heath, PRG's chief executive, said: "We have plans to resurrect this famous restaurant, including proposals to introduce a quality 'grab and go' concept at the outlets.

"We will start by pricing and with immediate effect we will cut the prices of key products." Details: www.little-chef.co.uk