It is fair to say that Robin Rowland has been a busy boy. In the space of two years, he has overseen the sale of YO! Sushi, the brand he has driven forward for nearly two decades, overhauled its management team, reinvigorated its employees, its branding and offer. Last week, the company completed what could be a game changing deal, acquiring North American sushi brand Bento Sushi. Rowland is now stepping aside to let Richard Hodgson, the former chief executive of PizzaExpress, build on this strong foundation and momentum. He has tried to pass the baton on before, but this time everything looks set to work out for everyone involved.
“When I feel I have done my job with YO! someone should take it on, but I have no plans at the moment to go anywhere. YO! was like being in a car and having to move up through the gears. It was in neutral to first to second etc, and we are only halfway up through the gears at the moment and I want to get a little bit further. I will have to work with the investors on the right decision at the right time, but I have my head down at the moment,” so said Robin Rowland to me at the start of this year.
After overseeing Mayfair Equity Partner’s c£82m acquisition of YO! Sushi in November 2015, Rowland found himself back leading a business he had stepped aside from for the previous two years. A first attempt to take more of a back seat as chairman, with former Mitchells & Butlers (M&B) executive Vanessa Hall taking the reigns, had not worked out. Rowland immediately set off on a 100-day plan, visiting everyone of the company’s c70 sites in the UK, its Middle East operation and its fledgling business in the US.
He said at the time “I wanted one-on-one meetings with every head chef and every manager. By the end of that process, I had a pretty good feel of the mood in the restaurants. All I care about is happy teams and happy guests. I am obsessed about that and I told Mayfair that until I have traction on that I can’t go forward. It was self-evident that the team wanted us to get our spirit back, that go-forward positivity. They wanted to see creativity and innovation back in the business again. They wanted inspiring leadership.”
Traction gained, teams reinvigorated, YO! has been one of the success stories of the last 18 months. As the majority of the industry has gone backwards, it has pushed forward in pursuit of Wagamama’s sector-leading like-for-like sales growth, posting like-for-like sales growth of 5% over the past 18 months. The gap has undoubtedly been closed, and much of the credit for that must go to Rowland, and the new management team he has put together.
For all the changes made, Mayfair have been “very supportive”. “They are brand ambassadors, brand challengers and global citizens, which is what I wanted,” said Rowland earlier this year. “They are open minded and ambitious for the brand. I am enthused about working with them. We are pretty clear on our long-term strategy but it allows me enough scope to be innovative. I believe what we have achieved in the last year, would have taken three years in another company.”
That support was in evidence again earlier this month, when out of the blue it was announced that it had acquired Bento, the second largest sushi brand in North America and the largest in Canada, to form “a global, multi-channel, multi-brand Japanese food group” in a £59.2m deal. The group is one of the largest sushi companies outside of Japan, with over 100 restaurants around the world, 550 partnered kiosks across North America, and fresh packaged sushi supplied to a further 1,700 partner sites. The combined businesses have recorded sales of approximately £175m over the last twelve months. The deal could be a game changer for the company, not just internationally, but also in the UK.
MCA understands that North America will be the immediate focus for expansion – with Bento continuing to grow its traditional channels but also focussing on YO!’s model of opening landmark restaurant sites in the US. There are no plans at present to re-brand any sites.
It is thought that YO! will use Bento’s expertise in grab-and-go to expand its YO! To Go offer in the UK, and explore partnerships, such as Bento’s tie-ups with supermarkets, colleges and corporate dining facilities.
At the same time, YO! is thought to be plotting a move into branded retail in the UK. It is understood that the YO! may look to repeat Bento’s multi-platform model in its home market – “echoing PizzaExpress’ branded supermarket listings on top of its core business”. As one source close to the deal said: “Whilst it is early days in our assessment in how we will prioritise these, it is clear that there is a significant opportunity for Yo to compete in the grab-and-go, food retailing and food services space in the UK.”
The mention of PizzaExpress, which sells over 35 million pizzas in UK supermarkets every year, producing over £100m in sales, comes more into focus with the identity of Rowland’s successor. Richard Hodgson stepped down as chief executive of the UK’s largest restaurant chain, earlier this year after four years leading the company.
During his time with PizzaExpress, Hodgson oversaw its sale to Hony Capital, one of China’s largest private equity firms, in a deal valued at c£900m; the addition of 150 new restaurants; the acquisition of its international franchise operations in the UAE and the Far East; and the development and growth of its business in China.
He also oversaw a return to like-for-like sales growth; the rejuvenation of its management team; its link up with Deliveroo; and the acquisition and subsequent roll out of the Firezza brand.
It is fair to say his departure from PizzaExpress, for “personal reasons” came as a surprise, especially at a time when he was starting to see some of his initiatives work and the business slowly return to like-for-like sales growth. The immediate assumption was that the former Asda, Waitrose and Morrison’s executive would return to the grocery sector. He intimated as much to our sister title The Grocer just a few days after his exit from PizzaExpress.
Hodgson said he had already received lots of “flattering” offers from rival foodservice operators, but “after running the nation’s favourite restaurant brand” wanted to return to the grocery sector. “I have thoroughly enjoyed my first chief excutive role running the nation’s favourite restaurant brand and am immensely proud of the team I leave behind and what we have achieved together,” Hodgson said. “However, it is time for a fresh challenge and my heart lies in the grocery industry.”
With YO!, especially on the back of the Bento deal, it seems that Hodgson will get the best of both worlds. He brings an all-court game to the Mayfair-backed group and with perhaps a bit of unfinished business to attend to in the UK restaurant market after his swift exit from PizzaExpress. Not everything he touched at his former company was a success – the launch of chicken concept Reys and the group’s short-lived attempt at its own delivery concept cases in point – but overall he left the company in a better position than when he started, especially in a more competitive market.
And, what now for the company’s new non-executive director? He has been here before, but with no deal on the horizon and plenty of momentum in YO! Rowland will have the time to match his seemingly unlimited reserves of energy, to bring his considerable experience and skillset to bear elsewhere.
He already enjoys parallel careers in terms of being on the boards of Marston’s and Caffe Nero, and his work with the ALMR. Rowland thoroughly enjoys working in this industry - something that comes across to anyone who spends time with him. If I was a fledgling company or even one looking to take that next step from say 20-25 sites to double that figure, he would surely be a key port of call for advice. After 18 years driving YO! on, you would imagine that Rowland would want to take some time away, but I wouldn’t be surprised if this restless character hasn’t already got something lined up. I’m sure this “operators’ operator” will be inundated with calls.
