San Carlo Group’s like-for-like (lfl) sales are in double-digit growth as the Italian restaurant group prepares to open at least six restaurants in the next 18 months, according to managing director Marcello Distefano.
Speaking at the R200 conference hosted by MCA’s sister title Restaurant this week, Distefano said the group will open in Miami, Bahrain, Egypt, Turkey, and Morocco, adding to an existing international portfolio in Saudi Arabia and Thailand.
Within the UK, the group – which has c24 sites across the country – expected a decline in lfls due to maturity and increasing competition, but that hasn’t been the case, according to Distefano.
“We were afraid San Carlo would be seen as an older brand as new, younger brands popped up,” he said. “You’ve got to adapt to a new market, but without over-adapting.
“The caveat is to find the right balance and retain consistency and brand identity.”
Distefano added that the group, founded in Birmingham in 1992, experienced a turning point with its first opening in Manchester. The restaurant was forecast to reach £70,000 per week and instead did £130,000.
“It was absolute madness, but magic happened.”
The group’s first foray into London with its Knightsbridge site was “scary,” but it has since gone on to open a further seven sites across the capital under different concepts.
As San Carlo turns its attention to overseas expansion, Distefano emphasised it’s an “exciting market out there” with opportunities for businesses.
“Saudi is a strong market, with a higher average spend per head even without alcohol,” he said. “Dubai is also doing well, while Qatar is quieter but a different market.
“We took learnings from Kuwait, where we tried putting a casual dining mindset onto a premium product. It didn’t work.
“We may look at our franchising model and invest ourselves in the US if Miami goes well.”
He acknowledged cost pressures had changed the business since it first began expanding more than a decade ago, during a time of cheaper rents and wages.
“We asked ourselves, can our restaurant generate enough EBITDA to sustain if the rent goes up by £50,000?”
