Leeds-based bar operator, Arc Inspirations, is eyeing investment options as it seeks to grow its Banyan Bar & Kitchen brand by three a year.
Managing director Martin Wolstencroft told MCA that the group had already had several approaches and that he expected to complete the refinancing by Q1 2017.
He said: “We have done very well opening 15 sites since we’ve opened – one a year -through self-financing and bank debt. To really accelerate that we probably need further investment.”
Wolstencroft reiterated that the Banyan Bar & Kitchen brand would be the driver of growth with plans to grow the brand to 20 by 2021.
Two new conversions of existing Arc sites in Leeds are currently underway to take the Banyan estate to six – with Napa in Roundhay reopening on 21 October and Kobe in Horsforth relaunching on 18 November. The latter was originally earmarked for the company’s fledgling Kith & Kin brand but Wolstencroft said after the success of recent Banyan openings, it was deemed to be the best fit.
Wolstencroft also revealed that the group is in legals on a second site for its Manahatta concept, which he said is currently delivering 25% EBITDA.
On Banyan, Wolstencroft said: “We do see a great future for the brand on the back of fantastic results, both in terms of the finances and feedback. We are looking at other sites at the moment for future Banyans.
“We are constantly evolving the model and taking learnings from what we’ve done before. That’s in all areas – be that drinks, food or design.
“We could easily open three a year for the next five years – so by that point I could see us having 20 Banyans in different areas of the country.
On possibilities for the group as a whole, he said: “We have four strong brands that we can roll out to any market – whether that’s in student brands; young professional; business led or retail and late-night stylish offers.
He said while trade had been slow in June, it had picked up significantly over the summer with record results.
On changing behaviour among consumers, he said: “Customers want reasons to be able to get out and enjoy themselves. They’ve had enough of doom and gloom. We’ve seen a lot more growth towards gins, but also people are wanting more super-local – in terms of beer and food.”
