Blackfriar: Regeneration of Terry’s site can make life sweet again

Generations of local people worked at the vast complex, and, along with Minster, it had come to epitomise all that was great about the city.

The Terry’s factory site has been ripe for re-development since production ended in 2005 with the loss of more than 300 jobs, when US parent company Kraft transferred production to Europe.

For eight years, the site has been waiting for development. Sadly, vandals and the weather have taken their toll on some of the famous buildings.

But, after years of waiting, the site is on the brink of being reborn, and York’s economy and reputation will surely benefit.

Last week, Blackfriar chatted to Sheffield-based property company Henry Boot, after the company delivered a rise in half-year profits.

Henry Boot Developments, and the York-based housebuilder David Wilson Homes, bought the Terry’s site for an undisclosed sum earlier this year.

John Sutcliffe, the group finance director at Henry Boot, confirmed that plans for a hotel or a housing scheme were under consideration for the Terry’s site. He said the site’s fate was now in the hands of the market.

Anyone who cares about York will be studying the property market carefully, because signs of improvement will surely speed up the re-development on the Terry’s site.

Thankfully, Mr Sutcliffe reported that the market was moving into “growth territory” and this trend had started in the middle of last year, when the economic environment became more encouraging.

This, combined with a “more efficient and more sensible” planning process, had clearly put a spring in Mr Sutcliffe’s step.

Detailed proposals for the site will be scrutinised closely. Locals will be keen to ensure that any development on the site doesn’t harm its historic appeal.

But with the Tour de France’s arrival next year, our region’s potential as a base for investment opportunities will be very much in the public eye.

What better time to re-awaken a slumbering giant from our industrial past?

• Looking at the numbers, it is easy to see why serial restaurant entrepreneur Luke Johnson had such a big appetite for Red Hot World Buffet.

His buyout vehicle, Risk Capital Partners, has bitten off a majority holding in the restaurant group.

The private equity investor, co-founded by Ben Redmond, will provide development capital for the company’s further expansion.

Husband and wife team Parmjit and Helen Dhaliwal established the business in 2004. It now has seven large restaurants across the UK, employs 600 people and has a turnover of £22m. The transaction value was not disclosed.

Mr Johnson has a peerless reputation in the catering trade, with a CV that reads like a menu at a top London restaurant.

The former investment banker organised the acquisition of the mighty PizzaExpress in 1992 and was chairman until 1999 when its market capitalisation reached £500m.

Other investments include Patisserie Valerie, Giraffe and Signature Restaurants, owner of The Ivy and Le Caprice and founder of the Strada pizza chain.

Mr Johnson said: “We have been talking to Pammie and Helen for over three years and are delighted to have made this investment.

“We believe the buffet dining space to be one of the fastest growing segments of the UK’s restaurant market and that Red Hot offers great choice and great value for money to its customers in these challenging times.

“We are looking forward to working with the founders and the wider management team to help them in their ambitious growth plans.”

Risk Capital is bringing in James Horler, the former chief executive of Frankie & Benny’s and La Tasca, to support the existing management team, initially in a part-time capacity.

Mr Johnson will add his own ingredients as newly appointed chairman of the group.

Pammie Dhaliwal, founder and chief executive of Red Hot, said: “This is an exciting time for us and all the staff who have been involved in making Red Hot World Buffet a success since we launched our first restaurant in 2004.

“Risk Capital’s investment solidifies our growth ambitions and provides the financial and strategic support to help us capitalise our market offering. We are looking forward to what the future holds.”

Red Hot might be a move downmarket, with its diverse mix of English, Indian, Chinese, Italian, Tex-Mex and Japanese fare, but its global offering is appealing to customers in these cash-strapped times.

In spite of rather mixed online reviews, they are coming in their thousands. The biggest of the bunch, Nottingham draws in 7,000 a week with its 500 covers, while Leeds manages 6,500 a week, quite an achievement with 350 covers. Costs vary between £8.49 and £14.99 per head.