Be At One, the Piper-backed cocktail bar chain, is set to establish a national presence over the next 12 months, after seeing like-for-like sales increase 10% in the year to 29 March 2015, M&C Report has learnt.
The 24-strong group saw sales increase 34% to £22.4m during the year, with EBITDA climbing from £2.4m to £3.2m.
The company, which opened three new sites during the year, has secured a further eight sites for its new financial year, including four outside London; in Cardiff and Leeds (opening in May), Manchester (August) and Liverpool (November).
The group, which reported 9% like-for-like growth in the two previous years, is confident that it can eventually grow its estate to up to 120 sites in the UK.
During the year, it opened three new sites in Bath, Greek Street in London’s Soho and Oxford, with all believed to be trading ahead of expectations.
Last year, the company, which was founded by Steve Locke, Leigh Miller and Rhys Oldfield, agreed new facilities with banking partner, Lloyds Bank that match its expansion plans for the next 18 months.
The Mark Derry-chaired company has acquired the former Circle Bar at the top of Manchester’s Deansgate area and the Teppan 260 site situated in The Electric Press, Millennium Square, in Leeds’ Great George Street. It has also taken on part of the former The Bunker bar site in Cardiff’s St Mary Street.
It saw like-for-like sales climb 15% in the five weeks to 28 December 2014.
In November, it appointed experienced property professional Chris James as its new property director to aid its expansion plans.
Comment by M&C Report editor Mark Wingett
Back in 1997 when Steve Locke, Leigh Miller and Rhys Oldfield were struggling to raise funds to launch Be At One, it would have taken a significant leap of faith to suggest that their waiting-to-launch business would one day report full-year turnover in excess of £20m while gearing up to establish its national credentials.
At the time all three had to secure car loans after being turned down for a business one to generate the initial £60k outlay for their first bar, which opened in Battersea a year later. The site on Northcote Road made a £50k profit in its first year and that figure had grown to £400k by 2013. It remains one of the group’s best performing sites.
The ethos that worked for the business then continues to prove successful. On the consumer side it is a quality offer matched by high levels of service. As Locke has previously said, there are not many places “where you can go in, get a smile from the bartender, a handshake, a bit of recognition, good quality drinks, served quickly”.
As befits three guys that initially met and developed at TGI Friday’s, training is a key cornerstone of the company’s success. The group invests £5k in nine weeks of training for each bartender. The company has also proved adroit at leveraging sales through even the hardest trading period, with a number of impressive January-focused marketing campaigns, most recently TryJanuary and last year’s Adopt a Bartender, which have driven brand awareness, gained social media traction and boosted revenue.
On the business side, it is based on a strong, driven management team who are passionate about their business, resulting in exceptional ROI and outstanding trading results, which were being produced even during the downturn, leading Piper to invest £8m for a minority stake in the group in 2011.
The company was also the highest climber in the recent AlixPartners Growth Tracker, climbing 32 places to number nine, with a three-year CAGR of 44.5%, placing its alongside other brands such as Bill’s, Loungers, BrewDog and Hawksmoor, which are fast becoming the next generation of elite operators in the UK’s eating and drinking-out sector.
On the back of its initial regional openings in Reading, Brighton and Bristol, the group is confident it can grow to over 120 sites, which is thought will include 30 bars in the capital. It has also received enquires about launching overseas.
Next year will mark the fifth year of Piper’s investment, which should lead to the business reviewing its funding options for the next stage of its development. By that point, it will have cemented its national credentials and be in an even stronger position to decide its future investment needs.Both trade and private equity are expected to throw their hats into the ring for a business, which is continuing to be successful despite being the very antithesis of the current trend for all-day, food-led concepts.
It is fair to say that no one is talking car loans anymore when it comes to future funding, especially about a company operating in top gear.
