Gaucho owner reports record year, pipeline of 30 UK locations, continues to consider funding options: Rare Restaurants, the Gaucho and M Restaurants owner, has hailed 2023 as an “outstanding year” for the business with revenue reaching £75.3m, as the 22-strong group said it has a pipeline of 30 UK locations and continues to consider its funding options. The Martin Williams-led business reported double-digit turnover growth in 2023 with “like-for-like” restaurants enjoying Ebitda margins beyond 20% and a full group restaurant Ebitda of 19% (including three new openings). It said that its 2023 like-for-like sales “soared ahead” of pre- pandemic 2019 with 23% growth while new restaurants enjoyed sustained six-figure weekly net turnovers, with Covent Garden and Cardiff hitting weekly net turnover of £200,000. Last year saw the company open new venues in Newcastle, Cardiff and Covent Garden. It said that growth last year, built “on an exceptionally strong 2022, which saw Gaucho capture significant market share”. Williams said: “As we enter the 30th year of Gaucho and tenth year of M, it is amazing to continue to see our company grow in both turnover and profit. However, Ross [Butler, chief operating officer], Steve [Cramer chief financial officer] and I find most pride in the engagement, development and success of our people as we enjoy a shared journey together, striving to continue to offer the highest levels of hospitality, undisputed quality of offering and an ‘ethical dining’ experience to our guests. All of the above is underpinned by our outstanding commitment to training and imagination in recruitment that includes a target of bringing disadvantaged individuals into our family. After a five-year commitment (which proved us to be the exemplar of an empathetic employer during the pandemic), our values and engagement with our 1,500 plus family are now firmly embedded, which combined with our impact initiatives leaves us striving to be recognised as a world-class employer. We have seen brilliant growth in cities, towns and local neighbourhoods alike. With a pipeline of 30 UK locations, we will continue to grow our brands in a sustainable manner, which echoes our commitment to continue to offer our best-in-class menus (including carbon-neutral beef), remaining aspirational but accessible, with an increasingly broad demographical appeal and to have a lot of fun with our guests and our people along the way.” Williams told Propel that in terms of expansion, current targets are university cities and neighbourhood venues “capable of mirroring our successes in Richmond and Hampstead”. He said: “We currently have a very exciting new location in legals and I am continuously visiting exciting opportunities nationwide. I remember Gaucho head office costs spiralling when we had international locations in the noughties, I can see this happening now in many restaurant groups that feel they have reached their peak in the UK and are searching for a new international growth route. In addition to our outstanding restaurant Ebitda, as a result of our UK strategy, our head office costs are remarkably lean and thus the total company Ebitda percentage (after head office) is best in class.” In terms of its M brand, Williams said it enjoyed the strongest growth in the company. He said: “It saw 36% like-for-like growth in the latter part of the year and continues to be our busiest venue in the Square Mile. After a successful 2024 our ambition is to grow in London, likely Mayfair.” As previously revealed by Propel the business appointed advisors a year ago, off the back of a strong 2022 to explore opportunities for the company and Williams said it continues to consider its options, but enjoys the “backing of excellent investors in SC Lowy and Investec who have supported the business to open five restaurants over the past two years and remain excited by the future plans”. In terms of challenges over the next 12 months, Williams said: “The cost-of-living crisis and sector headwinds aren't going away, so to provide an aspirational but accessible premium experience which appeals to such a broad range of demographics, supported by innovative brand and marketing strategies is our approach to the top line. With regards to gross margin costs, over the past years, our inclusive culture, pay and benefits are the best and as a result; we retain the most. Our kitchens have also become central to our success, if you have the quality of people, training and skill to cook everything fresh to order, rather than 'buy in' you immediately save five points off your cost of sales and end up with a superior product. Finally, our long-term supplier partnerships, (which we nurtured during the pandemic) continue to pay dividends and bring us the best beef in the world; from our 35 partner farms in Argentina to our unique partnership with the Ethical Butcher farms in England, we can offer regeneratively farmed steaks, made carbon-neutral through our reforestation programmes which also take people out of danger of becoming victims of modern-slavery and trafficking).” Rare Restaurants (Gaucho) features in the Propel Turnover & Profits Blue Book, the next version of which will be sent to Premium Club members tomorrow (Friday, 9 February) and has grown to 875 companies. Rare Restaurants’ turnover of £75.3m is the 121st 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 Premium Club 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 kai.kirkman@propelinfo.com to upgrade your subscription.

Neat Burger to rebrand as Neat as it looks to evolve ‘from the occasional to the every day’: Lewis Hamilton-backed plant-based concept Neat Burger has said it is taking the first step in its brand evolution by rebrand as “Neat”, as it looks to evolve from “the occasional to the every day”. The brand refresh will be rolled out across its London estate starting with Soho and Victoria on Monday (12 February), and Camden the following week. Later this year, Neat will be rolled out across its global estate that includes Milan and New York City. The company said: “Neat is entering a new era with brighter, healthier and fresher ingredients, that have been reimagined into an innovative new menu that shows how delicious meat-free eating can be. Evolving as 'the healthier choice', Neat has drawn on more than four years of experience, loyal customer feedback, and the changing global landscape of plant-based eating preferences shifting towards 'natural food', that will showcase a modernised brand identity that signifies a positive change and commitment to doing things differently. Along with a new look and feel across the physical sites, the menu has undergone a complete refresh that caters to diverse tastes and preferences with a focus on natural and nutritious whole-foods, as well as plant-proteins.” New items will include Neat “superfood” salads, a range of organic ciabattas – baked fresh daily – as well as innovative sauces and dressings to elevate sandwiches, salads and burgers. Alongside this, Neat has developed the original burger category into “better burgers”, which will continue to include the brand's best-selling “Neat Burger” – which features a new and improved recipe. Zack Bishti, co-founder and chief executive of Neat said: “This 360-brand evolution is a very exciting time for us, and we look forward to rolling out the evolved brand across our London and international estate.” Last November, the business announced it was to close half of its eight-strong UK estate after seeing a “shift towards hybrid-work, leading to a natural decrease in footfall at some of our larger restaurants”. In the year to 31 December 2022, the business posted revenue of £4,636,080 (2021: £2,488,156), but saw its pre-tax losses widen to £7,863,296 (2021: (£3,211,365). As a result of its strategy change to focus on smaller, compact units situated in high-footfall areas, it ended plans for locations in King’s Road, Queensway, and Waterloo.