Bar operator Grand Union will look outside of the capital for expansion opportunities but anticipates its next three or four will be in London, Adam Marshall told M&C Report.
The group reported an uptick in performance with sales reaching £7.1m and like for like growth of 8% and site EBITDA of £1.3m for the 12 months to 28 March 2015. It also reported ”encouraging progress” for the 9 weeks up to 30th May 2015 with sales 21.9% ahead of last year.
The eight-strong bar group, which is backed by serial investor Luke Johnson, reported “a very strong improvement” at its recently re-launched Wandsworth venue which saw a sales increase of 50.7% for the first nine weeks of the financial year.
Across the rest of the estate like for like sales were up 17.1% for the same period as Marshall is seeking new sites in zones one and two to reach its goal of 20 bars inside London.
Marshall told M&C: “We feel confident the formula and concept will work in many places we are not yet in in London; we are looking across south London where there are a lot of places young professionals generally live rather than families.”
He said discussions are continuing to secure a site in Clapham, but he is interested in all of zones one and two where the right demographic lives and wants to go out to.
To reach the target of 20 sites within London Marshall anticipates an opening rate of two or three sites each year and would consider looking away from the capital also.
“For the next three or four sites we would want them to be inside London; I think the pace of business outside London is strong but inside is stronger and more insulated,” Marshall said.
He added the logistics of running the company would be prohibitive to regional expansion at this stage.
“We would like to try to see whether the brand and concept does so well outside London as we do inside,” he said.
As well as investing in the Wandsworth bar, the group has upgraded the drinks and food offering and is implementing a people-focused strategy designed to recruit, train and develop every member of the team to the highest standard.
