If you thought it was going to be a quiet summer in the pub and restaurant market then think again. The twin forces of market consolidation and retail specialisation are still very much hard at work.
That is no better demonstrated than by Yates Group's decision to bow to the inevitable and start talking to potential buyers. Yates's problem is that it can no longer leverage its stock market position. The options of going private or selling-out to a trade competitor are now better options for the business. The warning for all those similar-sized, listed operators is not to let your foot off the accelerator for even a moment.
That is most pertinent for the likes of SFI Group and Regent Inns. The latter has said it needs a third brand, and it is seen as a front runner in the bidding for Pitcher & Piano, the bar chain that Wolverhampton & Dudley is selling off. If it doesn't do a deal soon, it may well become the prey for anyone taking a shine to its star brand Walkabout. Growth is the name of the game.
SFI is almost continually linked with one deal or another and the recent appointment of former Whitbread property director Hugh Siegle as a non-executive director only underlines its ambition. Both SFI and Regent
have been rumoured to be in the running for Yates, though Luminar now seems to be most pundits' favourite. SFI, however, is being spoken of as one of two likely buyers of Scottish & Newcastle's Old Orleans restaurant chain. The other keen bidder is said to be Mill House, just to emphasise the growing role venture capital finance is having on the managed pub and restaurant sector.
Luminar has continued to be a major acquisitor and can justly claim, as leader of the late-night sector, to be one of the market's "big beasts" alongside the likes of Wetherspoon and PizzaExpress.
Addition of a chain like Yates would make good sense by spreading and strengthening its branded portfolio into the mainstream bar arena. Although, this weekend's speculation that the Government may put back licensing reform for up to two years, will hardly upset the Luminar top brass. It would give it an extended period to consolidate its late-night expertise without new competition to worry too much about.
Of course, deals have yet to be done. And as the Wolverhampton & Dudley saga shows, they can become both drawn out and messy. But the market won't be running out of potential sale targets, just yet.
City Centre is ready to shed its Chiquito and Wok Wok brands, as it concentrates on building up its core business around Garfunkels and Frankie & Benny's.
Whitbread is also said to be ready to part company, given the right price, with a whole raft of high street restaurant brands, including Café Rouge, Bella Pasta and even TGI Fridays, as it is concentrates on its core pub restaurant with lodge operations, such as Brewsters, Brewers Fayre, Beefeater and Out & Out.
Whitbread's other big opportunity is Costa, which if it wants to be a European as well as a UK challenger to Starbucks will need to get bigger and take out competitor coffee brands, such as Coffee Republic and Madisons, along the way.
Deal opportunities will keep on coming û holiday season or no holiday season.
That is no better demonstrated than by Yates Group's decision to bow to the inevitable and start talking to potential buyers. Yates's problem is that it can no longer leverage its stock market position. The options of going private or selling-out to a trade competitor are now better options for the business. The warning for all those similar-sized, listed operators is not to let your foot off the accelerator for even a moment.
That is most pertinent for the likes of SFI Group and Regent Inns. The latter has said it needs a third brand, and it is seen as a front runner in the bidding for Pitcher & Piano, the bar chain that Wolverhampton & Dudley is selling off. If it doesn't do a deal soon, it may well become the prey for anyone taking a shine to its star brand Walkabout. Growth is the name of the game.
SFI is almost continually linked with one deal or another and the recent appointment of former Whitbread property director Hugh Siegle as a non-executive director only underlines its ambition. Both SFI and Regent
have been rumoured to be in the running for Yates, though Luminar now seems to be most pundits' favourite. SFI, however, is being spoken of as one of two likely buyers of Scottish & Newcastle's Old Orleans restaurant chain. The other keen bidder is said to be Mill House, just to emphasise the growing role venture capital finance is having on the managed pub and restaurant sector.
Luminar has continued to be a major acquisitor and can justly claim, as leader of the late-night sector, to be one of the market's "big beasts" alongside the likes of Wetherspoon and PizzaExpress.
Addition of a chain like Yates would make good sense by spreading and strengthening its branded portfolio into the mainstream bar arena. Although, this weekend's speculation that the Government may put back licensing reform for up to two years, will hardly upset the Luminar top brass. It would give it an extended period to consolidate its late-night expertise without new competition to worry too much about.
Of course, deals have yet to be done. And as the Wolverhampton & Dudley saga shows, they can become both drawn out and messy. But the market won't be running out of potential sale targets, just yet.
City Centre is ready to shed its Chiquito and Wok Wok brands, as it concentrates on building up its core business around Garfunkels and Frankie & Benny's.
Whitbread is also said to be ready to part company, given the right price, with a whole raft of high street restaurant brands, including Café Rouge, Bella Pasta and even TGI Fridays, as it is concentrates on its core pub restaurant with lodge operations, such as Brewsters, Brewers Fayre, Beefeater and Out & Out.
Whitbread's other big opportunity is Costa, which if it wants to be a European as well as a UK challenger to Starbucks will need to get bigger and take out competitor coffee brands, such as Coffee Republic and Madisons, along the way.
Deal opportunities will keep on coming û holiday season or no holiday season.
