Chicken Takes Over Burger, But Where’s The Beef?

The UK restaurant sector has endured a tough few years as it has struggled to respond to the recent recession. For those that have survived, attention is now turning to the competitive structure of the market, with many commentators expecting a consolidation of the market through a series of takeovers. It looks like the takeover process has begun…

Lots of media coverage about the £30m takeover by Nandos Group (famed for its chicken outlets) of Clapham House Group (owner of various specialist restaurant brands including Goumet Burger Kitchen).

This takeover provides a really useful case study for students to research. What are the motivations of Nandos taking over a close competitor? How will Nandos aim to make the takeover work? What are the strategic and operational challenges that Nandos will face as they begin the process of integrating Clapham House into their portfolio of brands?

Capricorn Ventures International, which owns Nando’s, says the trading environment for restaurant businesses in the UK remains difficult and it will need ‘investment and time’ to ‘reinvigorate’ Clapham House’s restaurants.

Nando’s, which operates in the same “casual dining” sub-sector as GBK, has 234 restaurants and employs more than 6,500 people.

Clapham House Group operates brands in two market segments: Gourmet Burger Kitchen (GBK) and The Real Greek. GBK offers 20 burgers including beef, chicken and vegetarian burgers. GBK operates in 52 stores throughout the United Kingdom and 15 internationally. The Real Greek offers traditional Greek cooking and accompanied by Greek wines. The Real Greek operates from six locations.