Gourmet kebab concept Chifafa is searching for a second site in Soho as it looks to realise its target of ten stores in five years.
Co-founder Nick Green said the high costs in central London was making it hard for independents to compete with big name operators – but suggested Brexit may have moderated prices.
The concept launched in Clerkenwell in November 2014, inspired by the popular kebab stands of Berlin, and aimed to change perceptions of the popular takeaway option in the UK.
Green said he and business partner Matthew Kershaw were talking to angels and private investors as well as Crowdcube about finding optiosn for expansion.
He said: “We hope to have a few more restaurants around in the next few years, but the problem at the moment is premiums are so high it becomes hard for independents to compete.
“The idea was we would try and get to 10 in the next five years – though that depends on a lot of things moving in the right direction. The rise of the price of the premium has definitely been a barrier.”
He said the concept relied on high footfall areas which ruled out outer London, with regional sites logistically difficult.
Green also said the government could do more to help operators by relaxing the rules on property use, with the lack of available A3 sites a constraint on growth.
On the current climate he added: “The interesting thing is that Brexit has seen prices ever so slightly.
“There’s no way they were sustainable at the prices they were at. Every single restaurateur in Soho was asking for £750,000 for his restaurant it was just farcical.
“Hopefully it will become a bit more realistic because we can’t afford to compete with the Itsus and Pret who can just snap up these sites when they come up.”
