Yo! Sushi seeks US franchise partner for 100 new outlets
Yo! Sushi, the chain of conveyor-belt sushi bars founded by Simon Woodroffe, is in talks with potential franchise partners with a view to tackling the USA.
The group, which is also in talks with a venture capital firm over funds to double its UK business, is set to open its first overseas outlet next month in Dubai, where it has just signed up a franchisee, but its main focus will be the USA.
Robin Rowland, managing director of Yo! Sushi, said he was hoping to sign up a US partner within the next six months. "This would be a tremendous move. We want to find a disciplined, multi-site operator capable of opening up to 100 sites across America."
Rowland said he was undaunted by the past failures of UK brands such as PizzaExpress and Belgo in the USA and the huge problems being suffered by Pret A Manger following its entry into the New York market in partnership with McDonald's. "It's all about doing the research," he said.
In Dubai, Yo! Sushi has teamed up with Daud Sons International, a family-controlled trading company with interests in construction and engineering that also has a McDonald's franchise. Daud, which is investing US$500,000 (£316,000) in the first Yo! in the Burjaman shopping mall, is contracted to open five sushi eateries over the next five years. Yo! will receive a territory fee and a royalty of about 7% of turnover.
Rowland said the company was also close to signing a franchise deal for three restaurants in Kuwait, and a possible deal in Greece.
The restaurant company has 11 outlets in London and sites in Edinburgh and Manchester. Its 14th will open in London's Fulham Broadway Centre at the end of March. Three of the sites have Yo! Below bars, although no further bars are planned for the time being.
Rowland takes the hot seat
The group's move overseas coincides with a refinancing of the company that will see Simon Woodroffe, who founded Yo! six years ago, step down as chairman to a non-executive role. He is to sell almost a third of the company to enable the chain to double its number of UK restaurants.
Woodroffe, who opened his first Yo! Sushi in London's Poland Street in January 1997, is close to signing with an unnamed venture capitalist over the sale of a 30% stake in the company for a sum believed to be well over £10m.
The entrepreneur will take a back-seat role at Yo! Sushi, leaving the company under the control of Rowland, who joined the group in 1999 after a career with Whitbread, Scottish & Newcastle and, most recently, City Centre Restaurants. Woodroffe will focus his energies on Yo! Ltd, which holds the rights to Yotel!, a budget hotel concept, a spa business called Body Yo! and the recently launched Yo! Japan fashion range.
"When the refinancing comes off we'll have the funds in place to double the size of the UK business to 30 restaurants within the next four years," said Rowland.
