Abokado chief executive Mark Lilley has told MCA that there has been a shift in landlords’ attitudes towards operators but further flexibility is desperately needed.
He said that. despite having the firepower for growth, the currently 24-strong healthy eating chain was likely to hold off on acquisitions until the second part of the year as he believes prices will continue to fall.
He said: “What we are seeing is that asking rents haven’t moved but behind the scenes landlords are writing 12-18 month rent-free deals. We’ve been offered reverse premiums on new leases – that’s never happened before. Behind the scenes deals are being done but they are ones that favour institutional landlords in so much as they are able to maintain the tone of rents within a block.
“We think it has further to go – there’s no way that in six to 12 months we will be paying more for a site than we would now.”
He also spoke changing attitudes towards healthy eating, stressing that people were no longer as obsessed with low calories but seeking more natural diets. He insisted that this was a trend that was already well established outside London, as well as in the capital.
He said: “Healthy eating is not a new phenomenon but customer shave definitely become more sophisticated. It’s no longer all about the lowest calorie offering because people have realised that in order to get that flavour profile and to actually fill you up, you sometimes have to sacrifice something on the calorie front.
“What is important to people is that they are eating better – natural food that is fresh and not full of rubbish.
“It’s a trend that you’re already seeing very well established in other major cities, not just London, but it certainly has further to go.”
Earlier this week, Abokado announced several key appointments, including Kara Alderin, former head of operations for Fuller’s Dining division, as its new operations director.
Lilley said the group would next be looking to strengthen its finance and brand marketing functions.
