The casual dining sector has possibly been impacted from Covid-19 more than any other, and many brands that were synonymous with casual dining are no more.
Casual Dining Group owns and operates Bella Italia, Belgo, Café Rouge, Huxleys, Oriel and Las Iguanas, and prior to the current crisis employed circa 6,000 people across its diverse restaurant portfolio.
Nearly one third of the people employed across the group were recently made redundant after the group filed for administration and 90 of its 250 restaurants were closed.
Now a buyer is being urgently sought to save as many restaurants and jobs as possible.
There have in recent months been many casual dining restaurant sales and buyers have been able to acquire assets at a fraction of the cost when compared to ‘normal trading times’.
The most notable and emphasising the power of access to cash has been Boparan’s takeover of Carluccio’s.
In September 2010 Carluccio’s received a £90 million takeover offer from Landmark Group, a Dubai-based investment house, a month later the deal was done at that price.
Seven weeks ago Boparan paid £3 million for the Carluccio’s brand, head offices and 30 restaurant outlets. Not even allowing a value for the head office or brand, Boparan acquired 30 restaurants for £100,000 per restaurant. That is just 3.3% of the value placed on the business ten years ago.
There are differences in the comparison, not least just over 40% of the outlets were included in May’s sale compared to 100% in 2010. Nonetheless, the valuations and prices paid are stark by comparison.
A few months after Boparan’s deal, with restaurants reopened and not seeing the footfall many will have hoped to, the details and price paid in a sale of CDG or some of its parts will be interesting.
The list of potential buyers is now growing with many speculating and/or reporting through grape vines.
Potential buyers will undoubtedly have to compete with others hungry to acquire such well known restaurant brands. Potential acquirers also currently have other casual dining brands aplenty on their radar’s. The eventual buyer will be confident of a higher return on investment than the others, we look forward to reporting on the most optimistic winning the day.
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Casual Dining Group sale – 14 July 2020 – Casual Dining Group sale