Patisserie Holdings chief executive Paul May has told MCA that the group sees “plenty of opportunity” for further partnerships in motorway service stations and with operators such as Debenhams.
Speaking after the group’s preliminary results for the year to 30 September, which showed revenue growth of 13.3%, May said the collaboration with Debenhams was likely to be key to growth in northern Ireland, where the group recently opened its second site.
Chairman Luke Johnson said Patisserie Valerie remained the core growth brand and stressed that while it would evolve it was important it remained a “classic brand”.
He said the company was also keen to grow its Baker & Spice brand, but admitted its Brighton store, which opened earlier this year, would be tweaked.
On further growth, he said: “We have been actively looking for acquisitions since we floated but nothing has been quite right. We remain positive and I’m sure eventually we will find something to buy. We would want something we could grow and where there were synergies.
“If we could find sites in more upmarket locations for Baker & Spice, we would consider opening more. Brighton has been harder work. It’s very seasonal there. We’re probably going to tweak the model there.
“The vast majority of openings going forward will be Patisserie Valerie and although the brand will obviously evolve, one of the attractions is that it’s a classic brand. We are not looking to be cutting edge. We are in some cases serving a slightly older customer profile but we offer enduring favourites rather than flash in the pan approaches. That’s why it has staying power. Our favourites are mostly long established dishes that are not the latest fad but perennials.”
May said : “The initial focus for growth was on traditional high streets but we have moved into other areas like retail parks, service stations and with retailers like Debenhams. What we have seen is that trading is remarkably consistent in all those areas. Even the drinks to food ratio is comparable. We have a target list of where we would like to expand and these new avenues will be a key part of that.
“Debenhams is a good commercial partnership and allows us to go to areas where we might either thing twice about having a standalone outlet or that are challenging to get into.
Finance director Chris Marsh said there were significant headwinds facing the company, and the wider sector, in 2017 but stressed Patisserie Holdings was well-placed to weather them. He said with only 41 sites in London the group would be impacted much less in terms of business rate hikes than many operators.
Johnson said no price rises had been budgeted for this financial year but the group would respond to the market.
The group also announced yesterday it was investigating a loyalty scheme, which May said would first be trialled in certain areas across the estate.
On the appointment of Adrian Johnson as managing director of Patisserie Valerie, May said: “He’s got a wealth of experience in this sector and he’s a fresh pair of eyes. In terms of an initial focus, it will be around growing same-store sales and innovation.”
