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Clubs tycoon sees recession as chance to expand empire
Jonathan Prynn, Consumer Business Editor15 Jun 2009
Restaurants and clubs tycoon Richard Caring is planning a huge expansion of his empire in its Mayfair heartland.
The owner of a string of central London's celebrity haunts, including Scott's, The Ivy, J Sheekey, Annabel's and Soho House, believes the recession has thrown up a chance to add to his already glittering portfolio.
In a rare interview, his chief executive Des McDonald told the Standard: “A big part of my job is developing new ideas and new strategies for the business. I am looking at other opportunities in Mayfair.
“This is a time of opportunity and as a business we are looking for iconic brands or buildings to develop into.”
The multi-millionaire businessman, who made his first fortune supplying high-street fashion chains, already owns a cluster of paparazzi-stalked premises dubbed “Caring Town”.
Close to Scott's in Mount Street are private members' clubs George and Harry's Bar, society night spot Annabel's and Italian restaurant Cecconi's.
Mr McDonald, 44, said he aimed to expand the £200 million annual turnover of Mr Caring's restaurants and clubs by around 20 per cent a year.
He suggested this could potentially
become a half-billion-pound business within five years.
There are also plans for Caprice restaurants in New York and Los Angeles, which would act as overseas branches of Soho House, a chain of 30 restaurants over the next seven years in the Middle East and a roll-out of his Côte bistro format.
Mr McDonald, former head chef at the Ivy, said Caring, who burst on to the London fine dining scene four years ago with the acquisition of restaurant group Caprice Holdings for £31.5 million, would continue his “meteoric” pace of growth.
He said the recession had hit corporate spending by about 15 per cent.
But overall, the restaurants were trading like-for-like on a par with last year, although average spend per head was down by six to eight per cent.
Prices had been reduced by between 10 and 15 per cent on average to pull in more customers and The Ivy was still receiving 1,000 calls for reservations every day, he said.
The expansion plans come as Caring's rivals in London's highly competitive dining scene falter.
Gordon Ramsay has admitted that a similarly ambitious overseas opening programme almost forced his business into administration this year.
D&D Restaurants, formerly the Conran
chain, which owns 30 sites, said its turnover had dropped by about 10 per cent since last September.
