'˜Soft' market key to restaurant brand's growth

James Hitchen, chief executive of East Coast Concepts, which owns Neighbourhood and Victor’s, is creating 60 jobs in Leeds with the opening of its third Neighbourhood site next month.

He said one of the main challenges for growing brands like his is finding prime city centre sites but that is about to change.

“The market is tough at the moment but if you’re selective on sites and you do what you’re supposed to in terms of hitting your numbers then it’s going to be a buyers’ market over the next 18 months or so,” Mr Hitchen told The Yorkshire Post.

Neighbourhood, which is inspired by Manhattan’s vibrant dining scene, was established in Manchester in 2012. The Liverpool site opened in 2016 following a multi-million pound private equity investment in the company by NorthEdge Capital.

Victor’s, which opened its first site in Hale, Cheshire, in 2014, takes its inspiration from the Hamptons and targets spa towns and affluent suburbs.

“There has been a lot of expansion and aggressive takeovers recently and I think you’re going to see that soften now,” Mr Hitchen said. “Typically the market is tough but over the summer Manchester has shown double digit growth so I think it’s going to be survival of the fittest.”

Mr Hitchen, 34, who grew up in Lancashire but went to school at Ampleforth, York, said he had been looking for sites in Leeds for about three years but needed the extra investment to be able to take the plunge.

He also turned down sites in York and Harrogate for Victor’s, although he is now actively looking for a new site in York.

“We’re not going for it for expansion’s sake, we’re really trying to do it in a proper, consolidated way,” he said. “We’re a small independent company. We only got investment last year. There’s been a huge amount of transition, going from an entrepreneurial, owner-managed business to private-equity backed business.”

Neighbourhood has taken over the former Carluccio’s site on Greek Street and invested £1.7m in fitting it out - its most expensive restaurant to date.

No expense has been spared with Hitchen flying in New York street artist Tristan Eaton to do all the artwork. Edwin Pickett, who designed restaurant chain Tattu, has created the interior.

“Greek Street was the obvious choice,” he said. “But sites are like gold dust. When we were approached about the Carluccio’s site, we bit their hand off.

“There’s been a resurgence down there so we’re lucky and pleased to have got the site.”

Mr Hitchen said the private equity investment has enabled the company to build the resources to put systems and procedures in place to enable the company to grow.

“We needed that before we went hell for leather looking at sites,” he said.

The company, which currently employs 220 people, has also signed a lease in Oxford for its second Victor’s site.

By the time the Oxford site opens, Mr Hitchen predicts turnover will reach £18m, up from its current £12m figure. He also plans to open at least two more sites next year.