I have the dubious claim to fame of being the first, and from what I believe only, trade journalist to have been invited to test and comment on Mitchells & Butlers (M&B) ill-fated Tuk Cho concept. Launched at the end of 2011, after a close look at Wagamama (there’s a sliding doors moment for the sector right there) and a failed attempt to secure Tampopo, the South East Asian cuisine restaurant concept was viewed as the managed pub operators first sole restaurant site. Although learnings were gleaned by M&B regarding the pan-Asian market and a number of Asian-influenced items appeared on menus across its other brands, the site in Ealing Broadway remained a one off, despite initial roll-out talk, until it was sold to become a Bill’s at the end of 2013.
It was the first time I met Oli Meakin, M&B’s then director of emerging concepts and now incoming chief executive of Gaucho and CAU. Meakin was rightly enthused about his new concept, especially as the company had hired Adrian McCormack, the former executive chef at the aforementioned Wagamama and Tampopo, to oversee the development of the offering. The food and overall offer was good, but sadly a combination of wrong location and M&B going through another change in leadership and therefore focus, halted any momentum concept could generate.
On the same evening, Meakin also spoke enthusiastically about the other project he was working on, putting the pedal down on the further expansion of M&B’s premium steakhouse concept Miller & Carter and exploring new locations for the brand. Launched in December 2006, under Meakin’s watch from the start of January 2011 to August 2012, it grew from 19 sites to c30, but during that time it also opened its first retail park site, its first town centre locations and its first site with rooms.
It has now become the key growth brand for M&B under current chief executive Phil Urban, growing from 52 sites to nearly 100 start of this year, with scope to add a further 40 locations. As I understand it, the work the group has put into Miller & Carter, means that some of the concept’s sites are generating average weekly sales of up to and in excess of £60,000 – meaningful enough to have its casual dining cousins worried and talking about it in hushed tones. Especially, you would imagine, the teams at CAU.
After five years away from the restaurant and pub sector working at Maplin Electronics, Meakin finds that his old concept is arguably one reason why the roll-out of one of his soon-to-be new charges has stalled. What many, myself included, believed had been the catalyst for the group’s c£100m acquisition by Equistone at the start of 2016, is now in need of a jumpstart. Launched in Guildford in July 2011,CAU quickly grew to 22 sites across the UK, at a time when its older, sister concept had stood still in terms of expansion. During that time it has lost its original driving force Charlie McClean, and two managing directors – Graham Hall and Richard Clark, with the brand coming under the remit of chief operating officer Tracey Matthews since last September.
Since last summer, CAU has put expansion plans on the backburner, with Equistone invest in upgrading a number of its sites, including restaurants in Edinburgh and Blackheath, with further emphasis being put on bar areas. Many have been surprised that the group hasn’t, like the majority of the restaurant sector, looked to consolidate its estate. Perhaps that will take place under Meakin.
During the same period, Gaucho has returned to the expansion trail, opening its first site in seven years in Birmingham last year and more recently taking advantage of STK pulling out of the St Andrew Square development in Edinburgh to make a return to Scotland after closing a site in Glasgow 15 years ago.
Former chief executive Zeev Godik spent 41 years at the helm of the company he founded before his surprise departure last year, so Meakin will certainly bring a fresh pair of eyes to his new business, and will be glad to have already in place to aid his first few months, Matthews and experienced chief financial officer Frank Bandura.
On the announcement of his new role, Meakin said: “I believe there are significant opportunities for the Gaucho and CAU brands, which are recognised for offering fantastic Argentinian steak and customer-recognised, industry-leading service.”
Some have suggested that the two recent openings under its core brand in Birmingham and Edinburgh, and a handful of refurbs are covering over some deeper cracks. It is thought that Equistone may have even had to already write down its investment in the business. What is sure, is that Godik’s successor will have his work cut out to get CAU back into growth and expanding again, not to mention re-ignite an international play for its eponymous brand.
One problem put forward is that the CAU and Gaucho service standards and offer are too close together but the brands have no notable link. Ultimately, Meakin may have to either create some re-branded link between the two, which may help provide CAU with some much-needed momentum or improve the quality of Gaucho to give it a clear point of difference, making the offering appropriate for its higher price point once more.
News emerged this week, that Hawksmoor, the company that has more than any other been responsible for transforming the steakhouse model, is to open in Edinburgh this summer, at the former Royal Bank of Scotland building, also in St Andrew Square. It will present an immediate opportunity for Meakin to see the challenge that Gaucho currently faces up close and where his energies will be best served.
