Steve Richards is to step down as chief executive of Novus Leisure this summer after eight years with the premium late-night bar and restaurant operator, to seek a new challenge.
Richards notified the 52-strong company’s board sometime ago of his intention to step down following the £100m sale of the business to LGV Capital and Hutton Collins last year.
A search for his successor is believed to be advanced.
Richard, who is believed will retain a stake in the business, said: “Having led the business since it was founded some eight years ago and successfully steered the business through the recent £100m buyout, it is the right time for me to seek a new challenge and hand the reins over. The team at Novus have truly transformed the business over the last few years and have succeeded in dominating the central London premium bar market by constant product innovation and building a market leading digital platform in latenightlondon.co.uk. Leaving a business that is part of your DNA is never easy but it is the right decision for me and for the business and I look forward to hearing of its continuing success.
“This year has been one of building for the future both in terms of developing the customer proposition, strengthening the digital sales channel and recruiting an experienced team with the capabilities to compliment and add to Novus’s highly successful management team. I wish both the business and its great people every success over its next stage of growth.”
As part of the ongoing succession process, Richards has overseen a number of appointments over recent months which the company said built on the strengths of the existing management team.
These include Tim Cullum who has just joined the Novus team as chief operating officer from TGI Friday’s, where he was operations director for the past six years. Prior to joining TGI Friday’s, Cullum spent a number of years in various senior roles in marketing, operations and property at Mitchells & Butlers.
Earlier this year, Gregor Grant was appointed as finance director. Formerly of Morrell’s of Oxford, Eldridge Pope and Fuddruckers Inc in the USA, Grant succeeded Andrew Campbell, who recently joined YO! Sushi.
Over the last 12 months, Novus has concentrated on strengthening its pre booked sales via its digital channel and raising again its customer proposition.
This has involved the repositioning of 12 of its existing sites via an extensive capital investment programme including the launch of its Lewis & Clarke rollout model at the Gable in the City.
In addition, it has sold a number of “targeted high value, non-core, single site disposals”, including the Long Acre bar in Covent Garden to US burger chain Five Guys.
Furthermore, the programme to refresh its ‘best in class’ digital and CRM platform, following 18 months of development and £2m of investment capital, is just months from completion.
The company said that going forward it would continue to refresh and evolve its estate in what it called the first stage of its development under its new owners as well as to look for interesting acquisition opportunities which will “its leading central London footprint”. This includes a new site it has just signed terms on in Leicester Square.
John Kelly, chairman said: “On behalf of the Board we would like to extend our gratitude to Steve for his immense contribution to building Novus into the market leading business which it represents today. He has overseen its transformation to central London’s premier bar and restaurant business and pioneered the pre-booked sales model which is the group’s USP. We will undoubtedly miss Steve’s energy and drive however a succession plan has been in place for some time and we have been busy building the new team for the future with appointments such as Tim Cullum who brings with him a wealth of experience gained within highly relevant businesses within the leisure sector. Together with Gregor, these appointments strengthen Novus’ management team for the next phase for its development.”
<b>Comment by <i>M&C Report</i> editor Mark Wingett</b>
Almost a year on from its acquisition by LGV and Hutton Collins, Novus Leisure finds itself at another crucial stage of its development, one that it will face without the man who has led the group into its position as the leading late-night bar operator in the UK and to a c£135m turnover business.
It has been an interesting 12 months for the group, new owners, further evolution of its offer, a good but believed to be below expectations performance over the festive season and the gradual change in the make up of its management team.
Richards has won plaudits for the transformation of the fortunes, having defied the recession to report consistently strong growth, a fact that last year put him in the frame for the chief executive role at Mitchells & Butlers and saw him voted by his peers as the Retailers’ Retailer of the Year.
Over the last three years, he has overseen the impressive re-launch of the former Balls Brothers estate and the development of an online booking facility that has helped to drive strong sales growth.
The company is expected to press ahead with plans to double the company in size over the next few years and is believed will look to swallow individual sites and small groups.
Names in the frame to replace Richards include Mark Jones, the former chief executive of Yates Group plc and executive chairman of Premium Bars and Restaurants, and current Mecca Bingo managing director. Some industry commentators have suggested that the positioning of the highly-regarded Cullum and the experienced Grant, may lead to an appointment from outside the industry. The process to find a replacement is believed to have started four months ago suggesting an appointment is imminent.
As for Richards, who is currently chairman of the Association of Licensed Multiple Retailers (ALMR), there doesn’t seem an obvious position available at present across the sector, and it may be that he will look to the wider leisure industry for his next role, say at someone like Cineworld. He will not want for suitors.
