Cote is the inaugural winner of the Zolfo Cooper Profit Tracker – an annual list of the 50 companies with the fastest-growing profits within the UK’s eating and drinking out sector – compiled by the corporate advisor in partnership with M&C Report.
The mid-priced French brasserie chain, came out on top in the new business index, which comprises the leading growth companies from the eating-and-drinking market.
The group, which is part of investor Richard Caring’s leisure portfolio, was the company with the fastest-growing profits within the vibrant pub, restaurant, and quick service sector.
Formed in 2007 by the management team that sold Strada to Tragus, Cote took pole position after delivering CAGR profit growth over a three-year period of a massive 225.3%. As it’s profits would suggest the group has grown quickly, opening its 30th site in Esher, Surrey, at the start of 2012. The group, which opened 12 new restaurants in the year to 31 July 2011, is expected to take its estate past the 40-site mark by the start of next year.
It beat a clutch of other high-performing businesses – big and small – which included Pret A Manger, YO! Sushi, Wagamama and Pizza Express owner Gondola. Wasabi, the London-based sushi and bento chain, was placed second in the inaugural list delivering CAGR profit growth of 79.8%, followed by Nando’s, the fast-casual chicken restaurant chain, which reported growth of 75.3%.
Alex Scrimgeour, joint managing director at Cote, said: “It is really nice to be recognised by through this unique new benchmark. Our approach has been very much to keep our heads down, ensuring that our restaurants are delivering the right Cote customer experience specifically in terms of great food quality, attentive service, a warm environment and of course great value for money.”
Paul Hemming, partner at Zolfo Cooper, said: “Picking future winners in business is fraught with difficulty especially in the leisure sector. Far more straightforward is the business of identifying the stars of today – the sector’s leading companies in terms of delivering stand-out profit growth. For despite the well-documented challenges for companies operating in markets exposed to discretionary consumer spending right now, this index is a timely reminder that there are still plenty of businesses that have thrived in the past three years – creating jobs and stakeholder value through impressive profit growth.
“It feels like it is more important than ever for the sector to celebrate its leading stars and their significant achievements. The Profit Tracker is therefore an important initiative, and one that Zolfo Cooper is extremely proud to support.”
Mark Wingett, editor of M&C Report, said: “What is clear from the first unique benchmarking scheme is that, despite the challenging trading conditions experienced over the last three years, strong brands with a high quality offer and skilled management teams have continued to grow their profits and estates.
“It also highlights that both established and fledglings groups have been able to prosper during the downturn. While there is a slight London-bias, the appearance of groups such as Amber Taverns, Loungers and Market Town Taverns shows that quality operators continue to buck the regional downward trend. Chains like Nando’s and Pret A Manger show that impressive profit growth is still possible even with estates closing in on the 300 mark.”
The full Top 50 list was published in the April issue of M&C Report.
