Arc Inspirations is in talks with the Business Growth Fund and private equity groups about funding its next stage of expansion, with plans for three to four openings a year in the short term, MCA understands.
Managing director Martin Wolstencroft also told MCA that he was currently negotiating on a number of sites and was looking at Manchester as a possible location for the group’s Manahatta format, the second iteration of which will open in Greek Street, Leeds, in March, after a £1.2m refurbishment.
He also said delivery would be a serious focus in 2017. The 15-strong group already works with Deliveroo across most of its estate, but Wolstencroft said it was also looking at partnerships with other operators.
He said the main driver of growth would be the five-strong Banyan bar & kitchen brand but insisted that there was potential to have a Manahatta in every UK city and that he hoped to have 10 within the next four years.
He said there was also scope to grow the currently four-strong barbecue concept The Pit and sports bar format, The Box, which currently operates in Headingley, Leeds.
He said the Manahatta brand had evolved in the three years between the first and second site, adding: “We’ve really focussed on this fantastic all-day New York brunch menu. The aim is to be flagship cocktail bar in Leeds and I think we’ve got every reason to think we can do that.
“We’re looking at a site in Manchester at the moment and I think Manahatta can open in every city. We could easily have 10 up and down the country in the next four years.”
On growth aspirations, Wolstencroft said: “We would like to get three sites open this year, including the Manahatta, and I think for the next few years three or four sites annually is about right.
“The important thing is that we don’t jeopardise the success we’ve got with our sites. I’ve seen too many people rushing to grow and forgetting what made them successful in the first place. We’ll never do that.”
On the options for funding growth, he said: “We are speaking to Business Growth Fund at the moment as well as various private equity. We also have the third option of continuing to grow as we are. We’ll look at all those options and decide what is the right thing to do for the business. I would expect to make that decision this year.”
On delivery, he said: “It’s a huge area of growth in the sector and something we’re really going to attack this year.
“There’s a massive market out there and there’s an argument that we should be filling that gap rather than someone else. It’s right to be conscious of the impact on our core business but I see it more as an opportunity to take share away from the takeaway/home delivery market rather than cannibalisation.”
Wolstencroft said the operational structure of the business was geared up for growth, with Mark Austin now heading up the Banyan brand. He said the group may look to appoint a property and acquisitions manager at some point this year.
