Exclusive – Arc Inspirations outperforming the market as it plans London debut next year: Arc Inspirations, the Martin Wolstencroft-led, premium bar operator, has said in its current financial year it has “consistently outperform the bar market outside the M25”, and revealed plans to make its London debut. The 19-strong group – which operates the Manahatta, Banyan and Box brands – said despite trading being beset by ongoing cost-of-living challenges, as well as poor weather and continued rail strikes, it continues to consistently outperform the bar market outside the M25, according to data from CGA by NIQ, with total sales outstripping the sector by an average of 8%, or 4.6% on a like-for-like basis. It comes as the business plans to reach 50 sites by 2030, including expanding into four new cities in 2024, with launches in London, Edinburgh, Liverpool and Cardiff under consideration. These sites will create around 300 jobs. Arc Inspirations co-founder and chief executive Martin Wolstencroft said: “The business continues to track ahead of the market as we move into the new financial year, which is extremely encouraging for future performance. The economic climate remains tough, exacerbated by the poor weather and rail strikes, but we remain focused on delivering fantastic service quality through recruiting, training and retaining the best team. We have rolled out our ‘Nobody Does It Better’ training, where our objective is for our teams to deliver a fantastic customer experience by exceeding customers’ expectations, and initial results have been outstanding – our total team turnover figures have reduced by 15% and our NPS scores have improved by eight points. The management team is strongly focused on increasing site sales and margins, with particular focus being placed on supplier partnerships. We anticipate better terms from energy suppliers when our largely fixed-rate deals come to an end. Backed by our investor, BGF, we will continue our site expansion strategy by seeking out excellent locations in key cities across the UK including geographies in which we do not currently trade, such as Cardiff, Edinburgh, Liverpool and London.” For the year to 26 March 2023, the company said it delivered annual sales growth of 7.5% against the backdrop of “relentlessly challenging” economic conditions for the wider hospitality sector. Arc said that against economy-wide inflationary and staffing pressures it grew sales to £40,813,939 (2022: £38,353,504), with adjusted Ebitda for the year standing at £3.84m (2022: £7.45m). It said its results were further elevated by the performance of two sites that were opened in the previous financial year – Manahatta in Temple Street, Birmingham, and Box in Deansgate, Manchester. The company said: “These flagship sites quickly established themselves as go-to venues in their respective cities, with Box Deansgate posting a company record gross sales week in late 2022, turning over more than £200,000 thanks to two England games in the men’s football World Cup, plus Tyson Fury’s boxing bout against Derek Chisora, while Manahatta Temple Street grew sales on New Year’s Eve by 68% versus the previous year.” The business said that company Ebitda for the year was lower than the previous period, reflecting “challenging cost environment, investment in the team for future growth and the absence of several one-off post-covid benefits provided to hospitality businesses, which totalled approximately £2m in FY22”. It said these non-recurring benefits, which did not repeat in FY23, included the VAT rate reduction on food sales, business rates relief and government grants. Since the year end, the company has opened a new site, Manahatta Sheffield. It said: “Continuing the positive performance of recent openings, this has become the company’s second most profitable site. A further successful opening, the group’s biggest ever Box, followed in June 2023 at Brindleyplace in Birmingham, while two more sites – Box Nottingham and Manahatta Newcastle – are set to open in November 2023, creating 150 jobs in the process.” Wolstencroft said: “The 12-month period to 26 March 2023 was a relentlessly challenging one for the hospitality and leisure industry. In this context, our performance reflects that of a well-managed, well-controlled, robust and resilient business. Our premium brands proposition appeals strongly to customers and our three distinct brands are differentiated and can exist close to each other in major cities, without suffering brand or trading dilution. There were a number of highlights in the financial year including a strong Easter, good volumes during the FIFA men’s football World Cup and excellent performances from our new sites, while our investment in outside areas has increased site capacities and made venues more attractive to consumers. Despite the significant challenges to our financial performance in the year, the business is confident it has outperformed many of its competitors in what has clearly been a very difficult year for the sector.” This month, Arc welcomed its new chief financial officer, Ciara Allan, who previously led the sale of Cooplands Bakery to EG Group and more recently supported shareholders on the asset sale of the Woven Group. Allan joins another recent addition to the group’s board, Laura Lewis, who was promoted to marketing director in June after three years with the business as head of marketing. Arc Inspirations features in the Propel Turnover & Profits Blue Book. Its turnover of £40,813,939 is the 186th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription.