L&G Ventures expects to achieve a valuation of £200m-£300m when it brings Cafe Rouge and Bella Pasta back to the stock market. The valuation is about 10 times what Whitbread got for the restaurants four years ago. Tightening up the service and using available space as efficiently as possible is said to have helped driven an increase in earnings as well as flexibility at Cafe Rouge. Ebitda climbed from £13m to £22m in the year to May 2006. Now further growth is expected this year. Bella Pasta could follow in Cafe Rouge’s footsteps by becoming a format that lends itself to all-day trading. It has designed seating areas to encourage people to come in for just a coffee and the menu has been expanded to include “grill” items. Altium Securities, however, says it is not convinced both brands have much of a future. Graham Turner, who leads the management team, disagrees and says he cannot see why Cafe Rouge cannot expand from 86 outlets to 200. The Sunday Times (Business) 26/11/06 page 16