Steve Hill has stepped down from Wagamama, the fast-casual noodle chain, after six years as chief executive.
It is understood that Hill’s departure from the group, which was acquired by Duke Street Capital last April for c£215m from Lion Capital, is amicable.
A process to find Hill’s successor is believed to have already started, however finance director Antony Perring and operations director Glyn House are to oversee the day to day running of the business in the interim.
They will report into David Williams, who became the chairman of the chain earlier this year, until a successor to Hill is found.
Hill stepped up from being the group’s finance director to assume the role of chief executive from Ian Neill at the start of 2006.
Under his stewardship, the group has doubled in size in the UK, opening its 80th site in the country in April in Cheshire. It has also established a strong presence internationally with c30 sites operating under franchise in countries, including Australia, Belgium, Kuwait, Qatar and Sweden.
Hill also oversaw the chain’s launch in the US in 2007, where it now operates three sites in Boston.
Last year, Duke Street announced plans to expand Wagamama to up to 300 UK restaurants.
Comment by M&C Report editor Mark Wingett
Steve Hill has always been a hard man to pin down, but over the last few months he has been even more elusive and now we have the reason why.
His leadership over the last six years, with Iain Neill in support for most of that time as chairman, has undoubtedly been one of the key reasons that has made Wagamama the huge success that it is today.
On his watch, the business has more than doubled in size in the UK and has established a firm presence internationally. It is one of the “Champions League” casual dining brands in the UK and Hill must take a lot of credit for that.
The work Hill has carried out at Wagamama won’t have gone unnoticed. It is now a big, multi-channel brand. Indeed, Mitchells & Butlers (M&B) admired it so much that it took a close look at the business a couple of years ago before settling on developing its own pan-Asian concept Tuk Cho. It wouldn’t be a leap for that admiration to push Hill into the thinking for M&B’s still vacant chief executive role, but he will undoubtedly have a number of suitors both in and out of the sector.
But where now for Wagamama and Duke Street’s investment. Growth in the UK should take care of itself, it’s internationally where the chain is at a crossroads and where Hill’s successor will need to train most of his/her focus, whether that is on the US or further franchise agreements in countries that have long been targeted, such as Germany.
The US operation still has question marks hanging over it, with a fourth site in Washington still unopened after over two years of being secured. The US remains a long-term play but Duke Street and the new chief executive will need to provide some much needed momentum to and an update on the strategy for the chain’s growth in the country.
These concerns will need to be addressed by the new chief executive, but even with them there should still be plenty of candidates willing to step into Hill’s shoes.??Wagamama is arguably the best brand with the most legs internationally and the role as its chief executive should still be viewed as one of the best jobs in casual dining.
