Azzurri Group plans to launch new acquisition Boojum in the North of England, building the brand’s presence before moving further south, group CEO Steve Holmes tells MCA.
The operator of Ask Italian, Zizzi, and Coco di Mama announced it had acquired a controlling interest in Ireland-based Mexican fast casual chain Boojum yesterday (19 June).
“We have a model that works well in Ireland and we’re looking to replicate its success,” Holmes says. “We’ll probably head towards Northern student towns like Leeds, Sheffield, Newcastle, and York, and grow in those before we take on the rest of the country.”
While the deal represents a significant diversification of Azzurri Group’s Italian cuisine portfolio, he emphasises the acquisition was less about cuisine and more about finding an “excellent business”.
“We were an Italian cuisine group by accident rather than design,” Holmes explains. “When we took on Coco di Mama, it gave us access to a different occasion, consumer base, faster proposition, and some delivery and catering - it just happened to be Italian.”
Boojum similarly provides exposure to a broader range of occasions and demographics, along with a value proposition, but Holmes agrees it also provides more “breadth” in terms of cuisine.
“Boojum just happens to be Mexican, but I think it’s a benefit because we wouldn’t necessarily want another Italian concept.
“We’ve got a bit over-reliant on Italian…arguably fast casual is also a bit more recession-proof than casual dining.”
The Mexican concept will translate well from Ireland to Great Britain, he believes.
“We didn’t look at it as a cuisine type,” Holmes adds. “We looked at it as an excellent business with a loyal customer base, a strong management team, and a market leader in terms of food quality and financial performance.”
Although Mexican food continues to garner popularity – with the expansion of concepts like Tortilla, Barburrito, and Zambrero – he looks upon it as an underserved market.
“There are more Mexican restaurants in Dublin per capita than any other city in Europe. It’s a competitive space.
“Boojum is already substantially differentiated with the quality of its food, digital loyalty, and connection with customers on social channels.”
While the two markets are “subtly different”, Azzurri Group’s expertise in Britain has allowed it to successfully launch Zizzi in Ireland.
“We learned those lessons in taking Zizzi to Ireland,” Holmes explains. “We think we can add that experience to Boojum in reverse.”
Azzurri will leverage its established supply network at home, while looking to replicate Boojum’s central production processes. The brand creates its own marinades and marinates its own meats, which is part of what makes the food distinctive, according to Holmes.
There is still scope for a few more Boojum sites in Ireland – which are lined up to launch before Christmas – but Britain is the primary growth opportunity, he says.
Azzurri Group, meanwhile, is “always in the market” for a good fit to add to its umbrella and to help concepts scale more quickly.
“We set up the business with that mindset,” Holmes says. “All management teams are supported by our central expertise, which made it attractive to David [Maxwell, managing director] and his team at Boojum.
“It was always our intention, even before we got involved with [investor] Towerbrook, to be an investment platform.”
Little about the Boojum brand will change as it launches in the UK, with its existing management team continuing to run the business.
“We’re looking to stay true to its DNA. Why change a winning formula?”
