London Restaurant News

Investing In The Restaurant Business

Gary Blake
LondonEats.com

Sunday, March 30, 2003

Have you always fancied opening your own restaurant?

Investing In The Restaurant Business

Fancy a gamble?

Who hasn't? Let me guess... you know the perfect location, the type of food to be sold and even the décor of the place! Well, you also probably know that it is one of the riskiest business ventures to undertake and that more restaurants fail and close than any other type of business.

We at LondonEats.com know, as we have to delete or change the name of many restaurants on our website every month. So, what can you do to lower the risk? Well, there are training courses in restaurant management available but, there is no substitute for on the job experience and that can mean starting at the bottom and working your way up which may take several years.

Alternatively, you can also limit your risk by buying into other people's established restaurants or on a higher level still, buying shares on the stock market in a restaurant franchise.

Below, are a selection of the more famous London stock market quoted restaurant brands, chains and franchises and the opinion of the financial sector analysts. For more information on Chain Restaurants check out our previous feature.

Ask Central (AKC)
Ask Central is home to the Ask, Zizzi and IT's Pizza and Pasta restaurants. 8 out of 9 independent financial analysts are recommending a buy for Ask Central. The Ask Central share price has been steadily on the increase for nearly 5 years now where it increased by 400%. To visit their website go to www.askcentral.co.uk

City Centre Restaurants (CTC)
Currently has over 280 restaurants in total and owns the brands Wok Wok, Est Est Est, The Deep Pan Pizza Company, Chiquito, Frankie and Benny's, Garfunkel's, Caffé Uno. Analyst opinion is somewhat divided, with 5 out of 10 believing City Centre Restaurants to be a buy at the moment. To visit their website go to www.ccruk.com

Groupe Chez Gérard (GCZ)
Currently 3 out 6 analysts are recommending a buy for Group Chez Gérard. However, we believe that the group has already turned a corner, this reflected in the fact that a few months ago the share price was the lowest in the company's history and has now started to make a recovery. The group also has a diverse range of restaurants with Bertorelli's, Brasserie St. Quentin, Chez Gérard, Livebait, Scott's. To visit their website go to www.santeonline.co.uk

Hartford Group (HAR)
The struggling restaurant group has recently revamped down their restaurant portfolio by changing Utah to The Common Room. However, they still have the contemporary American restaurants Montana, Idaho, Dakota and Canyon, plus the part Damien Hirst owned Pharmacy restaurant bar in Notting Hill. 1 out of 1 analyst recommends that the Harford Group is a strong buy. To visit their website go to www.hartfordgroup.co.uk

Harvey Nichols (HVY)
The last few months has seen a good improvement (about 30%) in the shares of Harvey Nichols. The department store group also owns the Oxo Tower, Prism and Fifth Floor Restaurant. Only 1 out of 3 analysts are recommending a buy for Harvey Nichols. The massive jewellery theft over Christmas 2001 had no effect on the share price. To visit their website go to www.harveynichols.com

J.D. Wetherspoon (JDW)
12 out of 21 independent financial analysts believe the pub operator to be a buy at the moment. J.D. Wetherspoon own 500 pubs in the UK including 100 in Greater London and have recently announced a modest increase in sales of 3.7%. On this news the share price fell and so they could represent good value at the moment as another 90 new pubs are planned for this year. To visit their website go to www.jdwetherspoon.co.uk

Pizza Express (PIZ)
Only 6 out 14 analysts are recommending a buy for Pizza Express. This surprises us somewhat as for the first time ever, Pizza Express have started advertising and also announced large-scale expansion plans. They were also a star performer last year with a 34% rise in share price. To visit their website go to www.pizzaexpress.co.uk

SFI Group (SUF)
A strong 9 out of 12 analysts believe the pub operator that has over 150 outlets is a good buy. The brands owned by SFI are Litten Tree, Bar Med, Slug and Lettuce, Havana, Cuba, Break For The Border and For Your Eyes Only. Strong sales over the Christmas period have already boosted share price, but a recent acquisition of the Parisa chain with plans to turn them into more Slug and Lettuce pubs could further boost them. To visit their website go to www.sfigroup.co.uk

Signature Restaurants (SUR)
Signature's restaurants include Bam-Bou, Daphne's, Pasha and The Collection. Although not recommended as a buy at the moment, we feel the quality of their restaurants will eventually shine through and also there is a new chairman imminent. The share price has been stable over the last year but not shown any real gain. To visit their website go to www.signature-restaurants.com

Whitbread (WTB) 7 out of 19 analysts are recommending a buy for the brewery giant. Whitbread own the Travel Inn and Marriott hotel chains and also have over 1300 restaurants in the UK with the brands Beefeater, Brewers Fayre, Brewsters, Costa, TGI Friday's and Pizza Hut. Although Whitbread has been accused of being unfocused, it is now trying to sell its somewhat tired looking brands Café Rouge and Bella Pasta and wants to expand the fitness club operations through David Lloyd Leisure. To visit their website go to www.whitbread.co.uk

Buying and selling shares is now easier than ever before as there are lots of on-line share dealing companies such as; comdirect, TD Waterhouse, Halifax Share Dealing, iDealing.com, IMIWeb and Share People. LondonEats.com currently use Merrill Lynch HSBC as brokers.

LondonEats.com does not accept responsibility for the content of other company's websites. Please be aware that the price of equities can go down as well as up. The directors of LondonEats.com do own shares in one or more of the above mentioned companies.

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