Restaurants Restaurant company Noho believes interest rate hardships are coming to an end – CEO predicts record sales as restrictions loosen

According to CEO Aku Vikström, the easing of restaurant restrictions will ensure that the company moves to a permanently profitable business.

11.6. 14:03

Restaurant company At a strategy update on Friday, Noho said it aims to increase its turnover to 400 million euros in three years.

Next year’s revenue forecast is EUR 280 million.

Turnover growth is sought mainly through international growth, the expansion of the Friends & Brgrs fast food chain and investments in large destinations.

At the same time, the company aims to reduce its indebtedness by selling its share pot of the Eezy HR company, which is currently worth approximately EUR 40 million, during the three-year strategy period.

These shares will be sold over time as buyers and sellers view the value of Eezy, Noho Chairman of the Board Timo Laine and the CEO Aku Vikström stated at a press conference at Restaurant Bank in Helsinki on Friday.

Wave according to the cornerstones of the new strategy are growth and reduction of balance sheet indebtedness.

Since 2006, Noho’s revenue had grown at an annual rate of just over 30 percent (CAGR), but the interest rate pandemic halted that rate.

“The corona is starting to be backwards, that’s how we are believed,” Laine said.

When debt is brought under control by the sale and growth of the Eezy pot, the company can make acquisitions, reduce its creditor or pay dividends, Laine said.

“You can make acquisitions as a share exchange.”

Vikström according to, the announcement of the Noho strategy update marks a historic turning point for the corona pandemic.

In Helsinki, restaurants can be open until 11 pm, in Tampere at one night and in Denmark until midnight, Vikström listed.

“Our very sales day this year is definitely.”

“For the first time in nine months, cash flow is positive. That means that net debt will start to decline. ”

Noho Partners’ Aku Vikström Restaurant Theater in Helsinki on September 29, 2020.

In Finland According to Vikström, the expectations of the restaurant industry are now also increased by the fact that in Finland, 60 per cent of the adult population has been vaccinated, Finns have eight billion euros in savings accounts and parks have recently been swollen.

“It is believed that the situation is very good in June-July.”

Vikström estimates that the improved situation means that Noho will have access to a permanently profitable cash flow-positive business.

After Midsummer at the latest, Noho will be able to open his provincial nightclub, Vikström predicted.

According to him, there are already good reservations for the rest of the year and the little Christmas season looks promising.

“From the beginning of next year at the latest, growth will start behind the safety car.”

The company the vision is to be the leading restaurant company in the nordic countries, while maintaining an entrepreneurial spirit and a “small company atmosphere”, Vikström outlined.

The starting point for growth is the change in consumers with age, where the consumption of restaurant food is increasing.

In Finland, the value of food sold in the grocery trade is five times higher than the turnover of restaurants, while in the United States the sales of restaurants are higher than in the food trade, Vikström compared.

Now the change is being accelerated by the fact that people have been taught to eat restaurant food thanks to food messengers like Wolt and Foodora.

“My father visited the restaurant once a year, my son at least once a week,” Vikström explained the ongoing trend change.

According to Vikström, as many as half of the sales of the Friends & Brgrs chain bought by Noho come through Wolt and Foodora.

In the renovated In its strategy, Noho sees its competitive advantage in its concept, in which it acquires local success brands from different countries for its restaurants and brings to it its operational know-how and the economies of scale of a large player in purchases, Vikström explained.

In particular, Noho has had good experience in managing opening hours and headcount in Norway, where the company has expanded rapidly, and is responsible for international operations. Juha Helminen said.

Vikström also said that 35 percent of restaurant costs come from staff costs, although sales often focus on a few hours on Thursdays, Fridays and Saturdays.

Therefore, there must be enough manpower in these times.

“In the time of the corona, we have learned to play this game better than before.”

Company said it would announce its move to a new country in Northern Europe during the strategy period, but had not yet specified the target country.

Countries close to Finland are as interesting as Poland, Helminen replied.

In Finland Growth is being sought through the rapid expansion of the Friends & Brgrs fast food chain and a few major projects, such as the restaurants of the Uros Live multi-purpose arena, which will open in Tampere in October-November, Vikström said.

Noho has already rapidly increased the number of Friends & Brgrs restaurants it has purchased from nine to 15 restaurants.

They are all profitable, Vikström said.

“One Friends & Brgrs restaurant opens every month. It’s a tough pace and it shows how serious we are. ”

Noho’s companies include about 250 restaurants in Finland, Denmark and Norway.

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