K10, the modern Japanese casual dining concept, is set to be rolled out across the City of London as part of plans to revive the brand.
The group, which is owned by three shareholders based in East Germany, has recently named Neil Dedman as its new managing director to relaunch the venture.
Dedman was formerly appointed by James Caan, the chief executive of Hamilton Bradshaw, the turnaround specialist, to save the sandwich chain Benjy’s, before it went into administration for the second and final time in February 2007.
He explained that since K10 had been set up in the late 1990s in London’s Moorgate, followed by three stores in the City, the owners had maintained a very hands off approach and had never fully capitalised on the concept.
He said that he saw the potential and popularity of the brand and planned to expand it without losing the quality of the food and service and the intimacy of the layout.
Plans include opening a further two retail outlets this year and then a second sushi restaurant with a conveyor belt and two further stores in 2009, with the City of London and the Docklands remaining the ideal locations due to the prominence of business people.
Dedman said: “The plan is to double in size by next year, by opening in clusters, with three stores to each restaurant.”
The company, which is not highly geared, said that it planned to open the next site organically and would then seek to raise finance for the rest of the expansion.
Dedman said: “Although the firm is well placed financially, I hope the City has already had its big hit so that we can continue to stay true to the brand.”
He, however, admitted that the company did face a challenge from rising input costs, especially tuna and rice that made up some of the main sushi ingredients, but that he was reluctant to increase prices which could lead to people spending less.
He also added that he had noticed customers becoming less cavalier about drinking alcohol during the day, due to growing worries about keeping their jobs.
Average spend per head at the K10 restaurant on Copthall Avenue is around £20, while food at the takeaway outlets is under £10.
