Darwin & Wallace opts for reinvestment over expansion

Darwin & Wallace is putting expansion plans on hold to focus on improving its existing estate amid political and market uncertainty, managing director Mel Marriott has told MCA.

Earlier in the year Marriott revealed the Imbiba-backed bar and restaurant group was looking to open further sites in the capital and wasn’t ruling out regional expansion.

Speaking to MCA following the publication of its latest accounts on Companies House, Marriott said it will instead focus on maintaining and refreshing some of its existing eight sites.

Released this week, the full-year (FY) results ended 29 May 2019 reported a challenging year for the business.

Whilst all sites generated a positive cash flow with a total sales increase of £2.9m, pre-tax losses amounted to £627k against a loss of £496k in 2018. Site EBITDA was £2.12m, versus £2.18m the previous year. Marriott said the growing delivery and takeaway market was a key pressure on their FY performance, and that the company would need to “think outside the box” in order to compete.

Marriott explained that whilst she was reasonably confident about the upcoming year following the success of the group’s new Canary Wharf site, caution would be taken regarding further expansion.

“In terms of new sites and pipeline it’s always going to be about the right site. We’re very lucky to be in the position we are to have eight profitable bars, guests who love our business and to be making healthy returns. I certainly wouldn’t want to rock the boat by choosing another property that I wasn’t 100% sure about,” she said.

Marriott said Brexit-related anxiety and a shortage of workers from mainland Europe were putting pressure on the business. “You have to find different ways to engage. You have to be really smart about growing people through the ranks.

“London’s a very expensive city to live in. If the pound and the euro are virtually comparative there’s less of an incentive to come and work in a city where you can’t save, send money back, or plan. As soon as there’s a resolution, people can focus on plans,” she said.

In response to these challenges, Marriott explained that the group would continue to evolve and improve its existing estate.

In preparation for the colder months, the terraces in every location have been fitted with light installations, and there are plans to fully refurbish the Clapham site - No.32 The Old Town – in the new year.

“It’s such a lovely, busy, popular site and we continue to refresh it in terms of maintenance. But this is a bit more of a step up, we want to re-invest and freshen it up.

“We’re going to make the upstairs bar in Clapham slightly more workable and a bit bigger. I hope it’ll be a nice surprise for the guests who love it anyway to see that we’ve got it nicely spruced up for spring,” she said.

Looking ahead to next year, Marriott said that the company would “work hard to tempt people out of their homes,” as it continues to focus on developing the independent identity of each site, as well as supporting a variety of community-led initiatives and events.