50 fastest growing OOH food and drink firms in UK

12 October 2015 Consultancy.uk

BrewDog, Bill's Restaurants and Ed's Easy Diner are according to new research the fastest growing out-of-home food and beverage companies in the UK.

In a recent report by AlixPartners, titled ‘Growth Company Index 2015’, the global consultancy ranks the fifty fastest growing out-of-home (OOH) food and beverage companies within the UK market. To qualify for the index companies need to show a turnover of at least £3 million and profits of at least £300,000 in their latest accounts. For the index, profits are calculated as the firm’s EBITDA plus the director remuneration added back in. Key reason for adding profits back in is that 70% of company profits can be removed at private companies to reward directors.

The analysis reveals that private equity has a major stake in the UK’s fastest growing OOH businesses – 42% of ownership is in the hands of venture capitalists and other external investors. Family businesses make up the second largest segment at 30%. 24% are private/owner operated, while 2% of business consist of overseas subsidiaries.

Top 10 fastest growing OOH food and drink firms

Top ten
BrewDog, a crowd-funded specialty beer company that has expanded rapidly in recent years, leads the index, up from the number four spot a year earlier. BrewDog’s revenue grew from £5.9 million to £18.1 million over the two year index period, while two-year profit CAGR stands at 134%. Bill's Restaurants comes in at number two, moving up one spot. The company has seen its two-year profit CAGR hit 122%, with profit of £5.9 million on revenue of £53.9 million. The number three spot is taken by Ed's Easy Diner, dropping from number 1 last year. The company’s two-year profit CAGR reaching 108%, while it has seen revenues grow from £6.0 million to £17.6 million over the past two years.

Hawksmoor, the first of the private equity owned companies in the top ten, moves down two spots to number four. The company has seen strong revenue growth at a 55% CAGR from £10.6 million to £25.6 million, while profits grew 80% over the two year period. Loungers takes the number five spot, also PE backed, jumping from the number 19 spot. The company has performed well in recent years, revenue increased at a 50% CAGR from £15.1 million to £33.7 million and profit increased at a 67% CAGR from £1.3 million to £3.7 million.

Top 11 - 20 fastest growing OOH food and drink firms

The sixth sport is taken by Stonegate, new to the ranking this year, which booked impressive two-year profit CAGR of 66%, from £18.3 million to £50.4 million. Number seven Le Bistrot Pierre has seen its profitability increase 56% over the two years, while Admiral Taverns, also new in the list at number 8, has enjoyed a 49% increase in profits over the index period. Be At One jumps from spot 41 to number 9, with its two year profit CAGR at 45% on the back of the acquisition of 111 pubs from Heineken UK last year. Krispy Kreme re-enters at number 10 with a turnover of £52.4 million and a profit of £9.4 million.

Top fifty
The rest of the top fifty include a wide range of store and types, from boutique family owned pubs to large corporate chain-stores. The research highlights however that the stores growing the most in profitability are predominantly private equity backed.

The top twenty welcomes Faucet Inns at number 11, while Tortilla drops from number 5 to number 12. Robinson's increases its profitability to move from number 37 to number 13, while Hix Restaurants makes the list for the first time at number 14. ETM Group too does well, moving from number 34 to number 15.

Top 21 - 50 fastest growing OOH food and drink firms

A new contender in the top 20 is Boston Tea Party at number 21; Davy's comes in at number 24, dropping from 14 last year; TGI Friday's loses ground, falling from spot 21 to 28; Beds and Bars on the other hand increases its position from 48 last year to 30 this year. The top 30 to 50 show little growth in profit over the past year, with between 1% and 10% growth, and include names like Hall & Woodhouse new to the list at number 31, Yo! Sushi re-entering at number 42, Wasabi at number 47 and Pho rounding off the top 50.

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