2nd Nov 2015 08:26
LONDON (Alliance News) - Restaurant operator The Fulham Shore PLC Monday said it has entered into a franchise agreement with London-based charcoal-grill restaurant and bar company Bukowski Ltd.
Bukowski currently has two restaurants, one at Brixton Market and one at the BoxPark in Shoreditch.
Under the franchise agreement, Fulham Shore, which operates nine branches of The Real Greek restaurant chain and 17 Franco Manca pizzerias, will open a new Bukowski restaurant on D'Arblay Street in Soho, London.
The company already holds a 15-year lease on the site through its wholly-owned subsidiary 10 DAS Ltd. Fit-out of the site is expected to commence shortly, with the restaurant expected to open in early 2016. Total fit-out costs are anticipated to be around GBP500,000.
Fulham Shore will pay Bukowski an upfront franchise fee of GBP8,500 and an ongoing franchise royalty calculated at a 5% rate of the new restaurant's revenue. The agreement is for an initial period of three years.
In addition, through existing supply arrangements with an independent third party, Bukowski's central kitchen will prepare and supply certain ingredients to Fulham Shore's Franco Manca restaurants at an agreed price. Fulham Shore said it expects the value of the ingredients to initially be around GBP200,000 a year.
Fulham Shore Chairman David Page and Managing Director Nabil Mankarious hold a 32% stake in Bukowski between them, and Mankarious is also a director at the company.
"We are thrilled to be opening a Bukowski in Soho. Bukowski sells great breakfasts, burgers, ribs and steak accompanied by delicious beer and wine. This three-year franchise agreement will add to Fulham Shore's exposure to, and knowledge of, the exciting and thriving London restaurant market," Page said in a statement.
Shares in Fulham Shore were untraded on Monday, last quoted at 16.50 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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