EXPERTS hail a “robust urge for food” for additional consolidation within the informal eating sector after The Restaurant Group’s £7m buy of Barburrito.
Regulation Agency, Dentons, was the only real adviser to The Restaurant Group (TRG) on its acquisition of the Mexican chain.
Brian Moore, Dentons’ Edinburgh-based divisional head of company, who led the group that suggested on the deal, stated consumers with the mandatory money had been eyeing alternatives within the UK and Europe.
Mr Moore, an knowledgeable on foods and drinks offers, stated: “Even when their spending is being squeezed by rising inflation, customers are nonetheless loyal to their favorite manufacturers, particularly in terms of treating themselves to a meal out.
“Our experience in working with branded hospitality portfolio house owners implies that we all know there are different offers on the market simply ready to be accomplished.
“There’s positively a powerful urge for food amongst portfolio house owners to purchase extra hospitality manufacturers.
“Our expertise within the foods and drinks sector and with model safety helped us to finish this transaction swiftly, getting one of the best deal for TRG.”
Dentons was the only real adviser to TRG on the deal, with Mr Moore being joined by his fellow associate Lorna McCaa from the UK tax group, together with colleagues Diana Mennie, a senior affiliate in its Edinburgh workplace, and Charlotte White, an affiliate in its Glasgow department.
They had been supported by tax marketing consultant John Finnick, actual property associate Brian Hutcheson, actual property affiliate Graham Ronald and mental property associate Ross Nicol.
The regulation agency has a protracted historical past of working with TRG on quite a few mandates.
Dentons’ expertise in branded hospitality portfolio offers contains advising European restaurant operator AmRest on the acquisition of Sushi Store Group and the German operations of each Kentucky Fried Rooster and Starbucks.
They supported Excessive Bluff Capital Companions’ takeover of Church’s Rooster within the US and run franchise masterclasses on the annual World Restaurant Funding Discussion board in Dubai.
Mr Moore’s feedback got here after TRG unveiled plans to double Barburrito’s footprint in the course of the subsequent 4 years, specializing in the south of England.
Barburrito, which was based in Manchester by Morgan Davies and Paul Kilpatrick in 2005, already has 16 websites within the UK.
The corporate has grown its like-for-like gross sales by 20% within the year-to-date, outperforming the 14% progress posted by the broader restaurant sector.
TRG – which owns manufacturers together with Chiquito, Frankie & Benny’s, and Wagamama – operates round 400 websites all through the UK.
TRG stated: “The Barburrito proposition is effectively aligned with key shopper tendencies – together with wholesome consuming, comfort, and customisable delicacies – and affords high-quality merchandise at engaging costs with a median spend per buyer of circa £10.
“Barburrito’s robust present buying and selling offers us confidence in its skill to align with and prolong TRG’s observe file of market outperformance.
“The websites have traditionally generated robust returns on invested capital in extra of 30% and TRG believes there’s important scope to additional develop and develop the model, notably within the south of England, the place there’s restricted presence.
“The preliminary enlargement plan can be to double the present property over the following 4 years.”