Casual Dining Group is gearing up for substantial growth over the next few years, fuelled by seemingly unstoppable growth from the Bella Italia brand. CDG property director Phil Derbyshire talks to James Wallin about the evolution of brands, cannibalisation and how landlords are continually raising the bar for operators
Last year’s rebrand and the high profile acquisitions of Las Iguanas and La Tasca put the Casual Dining Group in the spotlight but, according to property director Phil Derbyshire, in 2016 the brands will once again be the star.
The company is justifiably proud of its flagship formats Café Rouge and Bella Italia – which have been given a new relevance by the CDG team over recent years – and understandably excited about the opportunities provided by the new brands, in particular Las Iguanas.
I meet Derbyshire in the Shaftesbury Avenue Bella, and it is the Italian dining concept that is demanding most of his attention at the moment, as it edges closer to its 100-site milestone (it will be at 97 by the end of this financial year in May).
Of the 30 sites CDG expects to open next year, 15-20 are expected to be Bella Italias, with 5-10 Las Iguanas and a handful of Café Rouges.
Derbyshire says that the Bella concept has developed to a point where it can suit multiple locations and says he sees strong potential in operating the Italian brand side-by-side with Las Iguanas.
He says: “With Bella we are looking at each town and asking are there one, two or three opportunities there for us. We can fit into a town centre, we can operate on leisure parks/retail parks, whether they’re in-town or they’re a destination.
“The challenge is to make sure you’re not cannibalising the offer. That’s an important point, but I’m not sure anyone ever knows when you are at that point. Ultimately it comes down to an informed view.”
On the scope for the brand, he says: “We’re more than happy to talk about 250-300 Bellas. Particularly if we can split those into the constituent parts.
“There’s a big piece of suburban London we’re working on at the moment. If you look at some of our competitors – they have got a significant number of restaurants in that suburban area. Why can’t we put this in the same sort of locations that Nando’s have traditionally gone to? That goes not just for suburban London, but suburban metropolitan areas as well.”
Ireland is also a potential target for the brand, with market mapping being undertaken at the moment. Derbyshire said the company was actively looking at franchise opportunities for the brand.
“This is our most ambitious period of growth and the Bella offer has flexed a lot in the last couple of years to get us to the point where we can do this. When we started it was very much a pizza and pasta traditional offer. Quite old school. Whereas now Bella is pizza, pasta, grill family restaurant. We keep that Italian feel throughout the menu, but it’s evolved beyond that.”
Recent developments have included adding a bar area in large units such as Dudley, West Midlands, and Hemel Hempstead, Herts, with a separate bar menu.
Derbyshire says: We’re not turning the brand into a TGI Friday’s or even a Frankie & Benny’s, where you have that dedicated bar business. This is more to make sure people can come half an hour prior to their meal for a quick drink.
“Where we think there’s scope we will continue to do that – 180-200 cover restaurants with a holding bar is the model for big leisure parks.”
On the co-location of Bella and Las Iguanas, he says: “We’ve got five offers pending where we’re looking at that. We’re targeting the top 20 or 30 retail leisure parks in the country. On some of those we already operate Bella Italias so it’s about opportunities to add in the Las Iguanas model.
“What helps in those situations is that we know the landlords and we know the trading environment. In other cases we are having conversations about 8,000 to 9,000sq ft sites which can accommodate both brands.
“The two complement each other – they attract different audiences, but they fit well together. Café Rouge doesn’t sit in the same places, but with these two it makes sense to put them together. Landlords like that because it’s bringing in two different audiences in one deal and the success of one brand gives them confidence in the other.”
The company is also continuing to convert La Tasca sites to its core brands, most notably Bella.
Derbyshire says: “We have identified the core sites, that will receive investment and keep trading as La Tasca. Four are going to Las Iguanas. There are a further number that are being disposed of. That will leave us with an estate of c15.
“I’m not actively looking for new sites for La Tasca but it does give us an opportunity within our concessions business. If there’s demand for a tapas brand then we have a model that is already proven. That puts us in a much better position than creating a concept from scratch.”
While Bella is aggressively expanding, Derbyshire says that CDG is more selective about new sites for Café Rouge. The format was given a refresh with the introduction of the Rapide grab-and-go element last year. Derbyshire says the company is still gauging consumer reaction, but more sites are planned.
He says: “There’s a lot of people doing grab and go but we’re doing something different with that.”
On the potential for brand extensions with Bella Italia and las Iguanas, he says: “We are always looking at innovation on menus. We have looked at and are looking at some elements of grab and go with Bella, but the core business is to roll out the full offer. It’s nice to have that ability to do the brand extensions. But actually Bella is a proven model that has a lot more scope and we have to be careful about diluting that.”
On the outlook for 2016, Derbyshire says: “I think it’ll be more of the same. All of the key operators have set out their pipelines and no-one wants to fall short. The bar is continually being raised by landlords and developers – not just in terms of rent but in terms of judging us on quality of offer and the sustainability of the offer.
“You win sites on financials, you win on deliverability, quality of offer and relationships. Landlords want operators that have proven themselves.”
