Member Article

50 new Marco Pierre White restaurants to be rolled out across the UK over five years

Marco Pierre White, the renowned chef, restaurateur and TV personality, has signed a master franchise agreement with Sanguine Hospitality Limited (a leading hotel development company) through its vehicle New York Italian Ltd, in which Marco Pierre White is a shareholder.

The franchise agreement is for Sanguine Hospitality to oversee the roll out across the UK of the Marco Pierre White Steakhouse Bar & Grill and Marco’s New York Italian concepts, which is expected to total 50 new franchised restaurants within five years.

The first restaurant under the master franchise agreement – Marco’s New York Italian® – will be located in the heart of Manchester, just off Corporation Street, in a new purpose built 181 room Hotel.

Located on the ground floor of the new build tower, the 150 cover Restaurant will have its own entrance off Station Approach; the branding and visibility of the Restaurant for ‘passers-by’ will be such that the Restaurant will have enhanced appeal to non-hotel residents.

Hotel Indigo® Manchester is Hotel Indigo branded hotel by InterContinental Hotels Group, the world’s largest hotel chain. Leading Investment Fund Managers Tritax Group have structured the opportunity and are currently securing investment via the private equity market – website: www.tritax.co.uk.

The whole project in Manchester is expected to create around 350 local jobs, which includes the restaurant itself (50), Hotel Indigo® (86) and the entire construction phase (150-200).

All employees will be recruited locally, to not only reduce employee commutes but help fuel the local economy. The chosen trainees and apprentices for Marco Pierre White and Hotel Indigo®, will be provided training and back-to-work initiatives in line with the local Job Centre Plus teams, with the aim to place them into full-time employment at the end. Hotel Indigo will be choosing 12 apprentice staff drawn from the community.

Hotel Indigo’s aim is to provide long-term, fulfilling careers so training, coaching and mentoring are a priority. Trainees and apprentices already account for almost 10% of Hotel Indigo’s workforce, well above the industry average, but this percentage is seeing improvement year on year.

Manchester, the UK’s largest and fastest growing capital will also be the first location to roll out Marco’s new “New York / Italian” restaurant concept – affordable glamour. This particular brand’s ethos is simple; deliver great service and quality American/Italian food at affordable prices, offering an informal quality Italian dining experience.

“A further two Hotel Indigo hotels featuring Marco Pierre White restaurants are already planned to begin this year, Cardiff City Centre and a further opportunity being looked at in a London location.

The restaurant has been structured as an Enterprise Investment Scheme (EIS) qualifying company, thereby allowing Investors to benefit from the generous tax incentives offered by HMRC, and the hotel has been structured as a fund so that investors can therefore participate by way of a holding of units in the Exempt Unit Trust or participations in the Limited Partnership.

Investors must hold an investment representing an equivalent percentage in both the Hotel Company and the Restaurant Company. These investment opportunities have been structured by Tritax with the aim to maximise investor returns.

This represents an opportunity to generate an attractive post tax total return (IRR) after 4.5 years of 20.16% p.a. through the forward funding and operation of a hotel and restaurant, located in the heart of the UK’s largest and fastest growing regional capital, Manchester. The Asset manager is co-investing £540,000 on a pari passu basis alongside investors and will only receive a performance return once investors have received an IRR of 18% per annum.

The godfather of modern cooking, Marco Pierre White has led the UK restaurant scene for 25 years and helped kick-start the careers of chefs including Gordon Ramsay and Heston Blumenthal, both of whom trained under him. Marco is now dedicated to rolling-out his restaurant concepts throughout the country.

All three Hotel Indigo Marco Pierre White hotel/restaurants in Birmingham, Liverpool and Newcastle (which opened in 2011, 2011 and 2012 respectively), have traded well ahead of expectations in their first year. For instance for Hotel Indigo Birmingham, the restaurant sales of Marco Pierre White alone beat expectations by 157% in its first year.

All continue to trade ahead of expectations and benefit from four main sources of income: ‘captive’ hotel catering and bar service; hotel guests who lunch or dine at the restaurant; income generated by the café/deli and of course local corporate and leisure customers attracted by the strong Marco Pierre White ’ brand.

Hotel Indigo Manchester featuring Marco’s New York Italian® is due to open at the end of 2015, is situated in the most prominent and prosperous area of Manchester on Corporation Street, with direct links to the City of Manchester Stadium and walking distance from Phones 4 U Arena, Arndale Centre, Triangle, Selfridges and Harvey Nichols, the National Football Museum, Chetham’s School of Music and Victoria Station.

The strong demand balance expected from both leisure and corporate will allow full service hotels such as the Indigo and high profile restaurants like Marco’s to achieve strong trading performance.

The day-to-day management of the hotel will be executed by Interstate United Kingdom Management Limited, the UK subsidiary of Interstate Hotels & Resorts, one of the world’s largest hotel operators.

Marco Pierre White commented: “I am delighted to have signed a master franchise agreement with Sanguine that will see us open 50 new restaurants across the UK and Northern Ireland over the next five years. There is no better suited location than Manchester to embark on this ambitious expansion plan.

“With Manchester now attracting talent away from London, the City is in a prime position to capitalise on the continued economic recovery.”

Anna Corkill, development director for UK and Ireland for IHG said: “Sanguine Hospitality is a valued partner of ours and the relationship continues to go from strength to strength.

“We remain committed to working with reputable investors and owners in the industry for the long-term in order to deliver high-quality, sustainable growth.”

This was posted in Bdaily's Members' News section by Chris Lowe .