Munich Brauhaus. Credit: Nicole England
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Urban planning CEO of Urban Purveyor Group, Thomas Pash lets Danielle Bowling in on his plan to create Australia’s first billion dollar dining business.
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ith brands including Bavarian Bier Café, Sake Restaurant and Bar, Munich Brauhaus, Fratelli Fresh and The Cut, Urban Purveyor Group (UPG) has grown to become one of the country’s largest hospitality groups since its inception in 1976. Its growth has accelerated rapidly over the past 18 months or so, following the appointment of CEO Thomas Pash, and the company’s acquisition by private equity firm, Quadrant. Today, UPG has over 2,000 employees and boasts revenues in excess of $200 million. “When I started with the company, what I liked was that there were several amazing brands that I thought could be grown throughout the entire country, from city to city and state to state. So we went on the road to pitch it to private equity investors, because John Szangolies (UPG’s founder) was looking to get out, and there was a lot of interest in the ability to take this platform and build Australia’s first large scale casual dining group,” Pash told Hospitality. “We did a five year plan when Quadrant acquired us, and we want to be the first ever billion dollar dining group in Australia, and to really focus on having some of the best dining brands, in whatever category they operate in.”
INVESTING IN QUALITY CASUAL When the company was acquired in November last year it comprised 19 venues, and it now has over 30, with the expansion plans only ramping up over the next few years. A significant amount of investment will be placed in the premium casual and fast casual sectors, which Pash feels currently represent the biggest opportunities in Australia’s foodservice industry. Certain UPG brands operating in this space, he said, have the potential to boast up to 100 sites in five years’ time. This includes Sake Jr – the more casual, on-the-go sibling to Japanese restaurant brand Sake, – where customers design their own noodle- or rice-based meals by se22 Hospitality September 2016
lecting from a range of proteins, vegetables, sauces, toppings and garnishes. There’s also Fratelli Famous Pizzeria, which was launched after UPG’s acquisition of popular Italian restaurant brand, Fratelli Fresh, in April. Like Sake Jr, Fratelli Famous Pizzeria is based on customisation, giving diners the choice between two sizes of pizza and three hand-stretched doughs, over 30 toppings, six different cheeses, more than 12 different proteins and a range of sauces. Pash’s enthusiasm for the fast casual space is driven by the segment’s enormity in the States, where he’s previously led a number of private equity and venture capital funded start-ups. “Looking at the Australian market, it typically lags Thomas Pash. behind the US and the European casual dining sector by a couple of years, so we can really look and see what the top concepts in the US and Europe are and say ‘OK this is probably where foodservice is going in Australia’, and so we really like casual, for a lot of reasons,” he said. “Globally, we’re seeing a decline in fast food because people are getting a little smarter and a little more educated about what they’re putting in their bodies; they expect a better meal and better ingredients. You’re seeing a lot of that sector declining. And then with fine dining and white tablecloths, you’re also seeing that sector slowing down a little bit. But if you look at fast casual or full service casual, you’re seeing those markets continually grow, typically by three to five percent year over year, and we like that growth.” Pash is pretty relaxed about the definition of fast casual, listing home delivery, a shopping or dining precinct location and/or restricted floor service as key characteristics. “It’s just a convenient format where you can get a great meal – a meal that you could almost have in a fine dining restaurant – but you can get it in five minutes, and potentially eat that three or four times a week. It’s about having the high quality ingredients of a fine dining or premium restaurant, but in a convenient format that fits into your busy lifestyle.”