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Thu 9th Nov 2017 - Pace of independent restaurant openings in London slows, Gaucho chief executive steps down |
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Pace of independent restaurant openings in London slows, average dinner price increases above inflation: The pace of independent restaurant openings in the capital has slowed in the past 12 months, according to the 2017 edition of Harden’s London Restaurants. It reported 193 newcomers in its new edition, compared with 200 the previous year. The rate of restaurant closings however continued to rise, from 76 to 84 – the third highest year on record (the record of 113 was set in 2004). Net openings of 109 were lower by 12% than the previous year’s 124. A further sign the independent market is slowing comes from the ratio of openings to closings, which declined again (to 2.3:1) – a second year of decline from 2016’s high peak (of 3.2:1), which was the second highest in the past 25 years. Meanwhile, the average price of dinner for one at venues has increased 3.6% in the past 12 months to £53.20 compared with £51.37 last year. This rate compares with a general annual inflation rate of 2.9% for the 12 months to August 2017, accelerating the trend seen last year of restaurant price rises running somewhat higher than inflation generally. A slightly different perspective on the picture emerges however if the openings figures are adjusted to include branches of chains which, for quality purposes, the guide has historically omitted from its figures. The number of such previously excluded spin-offs – parts of chains at an early stage in their “roll-out” – more than doubled in the past year from 25 to 53, to give an aggregate newcomers total of 246 this year versus 225 a year earlier. Guide co-founder Peter Harden said: “You only have to look to The Ivy to see a restaurant that was once a standalone icon, now being ‘rolled out’ at a rate that would do McDonald’s proud. The old cliché that ‘independent = good, chain = bad’ is being challenged at an incredible rate with the duplication in the past year of concepts rated very highly in the Harden’s survey, such as Dinings, The Frog, Hoppers, James Cochran, Smoking Goat, and Temper, all turning this traditional presumption on its head. Brexiteers can take some cheer from the above figures in that the confidence to invest at the quality end of the London restaurant market has softened rather than collapsed. Remainiacs though may justifiably point out the rate of brand creation, and the attraction of new international brands to the capital has slowed, and closings have risen, doubtless not helped by the growing crises in both recruitment and costs reported by many leading chefs and restaurateurs.” The guide showed east London is still where the action is – but the south is catching up. After central London, “E” postcodes remained the destination of choice for new restaurant openings with 39 openings, although south London was not far behind with 36. Meat-based cuisines were less to the fore than last year, with Indian openings pipping them to the post as the third most popular category. The first two places remain reserved as they have been for many years by Modern British and Italian cuisines respectively. The Araki, the UK’s most expensive restaurant, run by three Michelin-star chef Mitsuhiro Araki, for the second year achieved the highest average food rating. The River Cafe once again overtook Sexy Fish to regain the dubious honour of London’s most overpriced restaurant.
Gaucho Group chief executive steps down: Gaucho Group, which operates the Gaucho and CAU brands, has announced founder Zeev Godik will step down as chief executive with immediate effect after 41 years at the helm. The company stated: “Zeev Godik wishes to consider wider interests and new opportunities based from Dubai where he and some of his family reside. He will remain a shareholder in, and strong supporter of, the group alongside investors Equistone Partners Europe and Luke Johnson, whose participation he helped secure in 2016. The group has an experienced and complementary management team including chief operating officer Tracey Matthews and chief financial officer Frank Bandura. Tracey and Frank will continue to work closely with chairman Paul Mason, the wider board and the group’s investors (including Godik) to lead the business until a new chief executive is appointed. Godik will continue to provide the leadership team with support to ensure a smooth transition following his departure.” Godik said: “I am hugely proud of this business. Since I founded Gaucho more than 40 years ago, it has grown to be an internationally known and loved brand with a reputation for offering outstanding Argentinian food and excellent service across an accessible selection of price points. The time has come for a new chapter and I am looking forward to spending more time on my wider interests and with my family in Dubai. I’d like to thank all the people who have worked with me to grow Gaucho Group into the brand it is today. That includes of course the ongoing management team, which I have brought together. It has been the biggest pleasure and privilege and I look forward to the continuing success of the group.” Mason added: “Zeev has created a fantastic business with a great culture. On behalf of the whole Gaucho family, I would like to thank him for his leadership over so many years. Well supported by our experienced investors, and with continued guidance from Zeev as a shareholder in the business, I will work closely with the group’s talented management team and board to deliver the group’s ambitious growth plans. It is a truly exciting time for the business which continues to expand, investing in existing locations and opening new sites across the UK, including most imminently our new site in Edinburgh.” Last month, the company reported turnover increased to £83,086,993 for the year ending 31 December 2016, compared with £70,329,000 the year before. Ebitda before pre-opening costs fell to £9,441,587, compared with £11,902,000 the previous year. Loss after tax more than doubled to £13,373,667 compared with £6.4m the year before.
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