Giraffe, the Risk Capital Partners and 3i-backed restaurant group, has reported a 17% rise in EBITDA to £4m for the 12 months to 25 March 2012, and said it had bank facilities available for further expansion and acquisition.
Turnover at the 47-strong group increased 18% from £34m to £40m during a year in which the Russel Joffe-led chain opened four sites in Bath, Chelmsford, Sheffield’s Meadowhall scheme and London’s Stratford Westfield.
The group, which said its operations were “strongly cash generative”, also opened its first site under its new QSR brand, Giraffe STOP, in the new concourse at Kings Cross Station. It said that trading at the new site in the first twelve weeks since opening was ahead of expectations. The group is expected to look at further opening opportunities at other transport hubs for the fledgling concept.
At the end of March, it opened its latest site and the second under its Giraffe Bar and Grill brand, in Leeds.
The chain expects to open up to six outlets in its current financial year and said it had a strong pipeline of new sites in place. It is thought that one of its next openings will be at the Xscape scheme in Castleford, while a further outlet has already been secured at the £350m Trinity Leeds retail scheme that is set to open in 2013.
Last month, as revealed by M&C Report, the company signed a franchise deal with Emirates Leisure Retail (ELR) to open its first overseas site in the UAE later this year. The first site is expected to open in Dubai Airport. It is thought to have also signed a deal to open in Lebanon and is believed to be looking at further franchise opportunities in India and the Far East.
Chairman Luke Johnson said: “This is another strong performance from the Giraffe business. Our brand will shortly be launched internationally with a site in the UAE. UK expansion has continued this year with the opening of five further sites. The Board are very pleased with the early performance of Giraffe STOP and the expansion of the brand into travel hubs. Despite the continued growth in restaurants, there remain many well-populated towns, cities, and leisure parks that Giraffe plan to serve over the coming years. We continue to enjoy a loyal following as a result of a great value menu and legendary customer service.”
Russel Joffe, managing director said: “We have again expanded successfully, this year not just in the UK but overseas for the first time, with a new partnership with ELR. We are excited about the opportunities that the deal with ELR will present over the coming years. We are now almost at 50 UK sites. Our key focus this year is to recruit and retain the best industry talent to support and underpin our continued expansion, both nationally and internationally.”
Justin Maltz, director, 3i said: “3i and Risk’s long term support for Russel and his team has seen the business transformed from a high potential London restaurant brand into a national – and now international – restaurant group. The last year’s performance has been exceptional and we are very excited about the opportunities for the business going forwards. It is a great example of 3i’s success in acting as a minority partner to support talented entrepreneurs in fulfilling their vision for growth.”
