These days, workers – in London especially – are spoilt for choice at lunch-time: no longer do they queue at an old-fashioned sandwich shop, instead choosing from an array of fast-casual chains delivering fresh, healthy and tasty meals at highly competitive prices. H & C News has been taking a closer look at some of these operators and their strategies, and was recently pleased to be given the opportunity to take learn about fast-moving Wrap It Up!
Gourmet wraps from around the world
“What I love about Wrap It Up! Is that nobody does exactly what we do. There are many Mexican burrito places out there who are very similar to each other, and the same goes for burger and sandwich joints, but our business is unique.”
Tayub Mushtaq, Managing Director, Wrap It UP!
Wrap It Up! is a fast-casual chain specialising in gourmet wraps from around the world. The wraps are made in front of the customer using only fresh, healthy ingredients sourced sustainably and locally as far as possible. They have an internationally inspired menu of wraps, including the Carribean Roti, Mexican Burrito, Indian Tandoori Tikka, Jamaican Jerk, Turkish Shish and Lebanese Falafel.
The recent acquisition of the three Flying Burrito outlets has not only increased Wrap It Up’s presence, but also added to the quality and range of its Mexican offering. But it’s not standing still: like many others, it is introducing breakfast menus.
Outlets and Team
“I want to take wraps to the masses as an alternative to boring old burgers and sandwiches. When somebody says “Wraps” I want Wrap It Up! to spring immediately to mind.”
Tayub Mushtaq, Managing Director, Wrap It UP!
By the end of 2013, Wrap It Up! Will have 13 outlets, including the re-branded 3 from Flying Burrito and 2 opening in Bloomfield Street and Middlesex Street in London. Such is now the efficiency of the Wrap It Up! Store opening process that they can open a new outlet in as little as 7 days from gaining access. They can seek to start earning a return on their investment in both property and fitting-out very rapidly.
Key members of the Management Team:
Tayub Mushtaq has been Managing Director of WIU since Oct 2012. He became Wrap It Up’s first franchisee in 2010 and within 18 months he managed to expand the business to 8 stores and he continues to further expand the business through developing franchised and company-owned stores. Before commencing WIU, Tayub spent 4 years working as a senior stockbroker for a successful boutique investment bank.
Horun Meah is Operations Director at WIU. He initially joined Wrap-It-Up as a franchisee in 2010. Prior to that he founded a training social enterprise in 2006 with his partner and successfully built the company into a leading training agency to private and listed companies.
Kashif Akram is Finance Director at WIU. He is a Chartered Certified Accountant with more than 8 years of professional financial experience working within a variety of public and private sector organisations across the UK.
George Groves is Marketing director at WIU. In 2010 he founded Flying Burrito as a small store in Petticoat lane selling specialist Mexican food. The business soon grew to three outlets and in 2013 the company merged with WIU. Prior to this he worked at UBS investment bank.
History and plans
The company was founded in 2006, but its rapid growth really began when Tayub – he loved the product as a customer – became its first franchisee in 2010. Such was his success in the Broadgate store that he not only quintupled its sales in 4 months, he opened 3 more outlets within a year.
In October 2012, Tayub’s business was merged with that of the original owners, and the company now encompasses all the outlets as well as the franchising operation which looks set to play a significant part in accelerating expansion: already, there are 8 strong prospects within the M25 (deposits paid) and strong additional interest both in the UK and overseas (watch this space!).
Although expansion to date has been driven by strong cash flow, it has now been recognised that expansion will accelerate further and faster with an injection of capital – hence Tayub’s recent appearance on Dragon’s Den (a story in itself). Though Dragon’s Den did not result in the desired investment – and TV editing made it appear a more negative process than was the case – both bank and private investment funds have been attracted, and it looks probable that the targeted £3million investment will soon be achieved.
With funding in place, and the franchisee pipeline strong, there seems no reason why Wrap It Up! cannot achieve the targeted 4 company and 4 franchise openings per year plus a new central kitchen and stock holding facility.
The figures
- Wrap It Up! Outlets vary in size from as small as 200 square feet turning over £250k p.a. with 3 employees, to 1200 square feet turning over up to £750k with 7 employees. The central kitchen supports all current outlets, with salads prepared on site. Opening times are driven by demand, and can be as long as 10.30 in the morning to 11.00 at night. Target profit margins range from 18% to 25%.
- Online deliveries provide valuable additional revenue: orders placed through SeamlessWeb are delivered by motorbike within 30 minutes and require no direct payments or credit control.
- Around 80% of turnover relates to the core lunch-time business, whilst 15% is evening, and a growing 5% is now breakfast and coffee.
- The customer base is diverse, reflecting the menu variables: from bankers to students attracted by both quality and price/value – Wrap It Up! prides itself on both – and offers include a small wrap, crisps and drink for just £5; both male and female (the option of ‘small’ portions helps); and tourists are able to identify with the different national foods on the menu.
- For the financial year to October 2013, turnover will have risen to around £3 million – next year it is expected to be closer to £5 million.
What next?
As indicated above, Wrap It Up! is on a fast expansion track, confident that its model will not only work inside the M25, but also in major urban areas around the UK, with international potential beyond that. With both franchisees and major investors and finance already lined up, it’s definitely one to watch over the next few years.