THE FULHAM SHORE PLC

Company Background

Fulham Header

The Fulham Shore PLC is a UK based publicly listed company that owns and operates several restaurant businesses within the inner and suburban areas of London.  The company was incorporated in 2012 and according to their 2016 Annual Report, owns and operates 34 restaurants, comprising 24 Franco Manca, 9 The Real Greek, and 1 Bukowski Grill franchise in Soho:

FranoMancaFranco Manca

TheRealGreekThe Real Greek

BukowskiGrillBukowski Grill

 

The company is operated by a team of ‘hands-on’ directors that have over 30 years’ experience in building restaurants in the UK.  This management team consists of six members:  a Chairman, 3 Directors (Managing, Finance and Corporate Finance) and 2 Non-executive Directors.  The directors believe that, given their collective experience in the restaurant and food service sectors, they can take advantage of the opportunities which exist in these sectors and create a profitable and sustainable business (The Fulham Shore PLC, 2016).

The company’s overall strategy is to purchase, operate and expand businesses in the restaurant and food service sectors, initially within the Central London area, and eventually to other towns and cities as identified by the growth of each developing brand. The company is focussed on building a number of small, local brands and has no interest in large national restaurant chains (The Fulham Shore PLC, 2016).  In working primarily with equity investors and business partners, the company aims to grow shareholder value by increasing both the profit and the value of each of their businesses.  The company plans to enhance this growth through reinvestment by opening new restaurants and developing staff incentive schemes such as profit sharing.

The Fulham Shore describes their businesses as ‘distinct growth’ businesses, each driven by skilled and incentivised restaurant entrepreneurs (2016).  The company typically seeks to take controlling interest in businesses through acquisitions.  Additionally, they will consider minority investments for strong investment cases which is evidenced by their 2016 franchise agreement with Bukowski Grill restaurants.

In 2016 The Fulham Shore reported its first annual profit since inception in 2012 and has already realised one of its expansion goals in opening 2 new restaurants outside of the London area.  Despite saying on their website that they are not interested in large national restaurant chains, the Chairman, in the company’s 2016 Annual Report, has indicated the company’s intention to expand Franco Manca and The Real Greek brands nationally.  According to the 2016 Chairman’s Report, the company is set for another year of growth and expansion as they diversify into other restaurant/food service concepts such as street food stalls, online ordering, takeaway delivery and even cookbooks, having launched The Real Greek cookbook in 2016.

The Fulham Shore offers their restaurant partners an attractive group of support options (2016):

  • Experienced board of directors and operators
  • Expansion capital
  • Access to lending
  • Strategic and operational aid
  • Designing and implementing specific control systems
  • Assisting with property requirements
  • Arranging full and partial exit routes
  • Potential opportunities for tax deferral.

Of the six management team members only 2 are described as having accounting qualifications on their website, the Finance Director and one of the Non-executive Directors.  The Chairman has cartography and teaching qualifications, whilst the Managing Director worked his way up from the kitchen of a restaurant formerly owned by a company belonging to the current Chairman.  The Director of Corporate Finance is a barrister by profession and the remaining Non-executive Chairman had a 38 year career in the banking sector.

The company has a total of 571,385, 237 ordinary shares of 1p each currently in issue, with 52.8% of the shares not in public hands.  The Chairman and Managing Director are the only members of the company’s management team that are listed as significant shareholders, holding a combined 33.92% of the total shares in issue.  The Company’s subsidiaries include Kefi Limited, FM6 Limited and Souvlaki & Bar Limited.

In engaging the services of a financial PR company to lead their external communication campaign, the company has shown a commitment to future growth and as a result have an obvious presence in online media with regular Twitter feeds, news articles in investment publications as well as the expected appearances on the London Stock Exchange, Google Finance websites and other stock-related websites.

The company’s Twitter feeds are showing a run of new restaurant acquisitions and openings with recent news articles reporting good revenues and profits for 2017:

 

The UK Restaurant/Food Service Industry

From initial research there appears to be a variety of factors affecting the industry, most notable being Brexit.  As reported by The Guardian in 2016 Brexit has the potential to destabilise food supply markets and food pricing in the UK which in turn will increase the risks faced by businesses involved in the restaurant/food service industries.

Now that the UK has voted to leave the EU, the fallout of Brexit on the food industry is evident in current news articles from this month (The Guardian) and at the end of last year (The Independent) relating to bar and restaurant chains reportedly having to scale back UK expansion as costs rise.  This is affecting all levels of the market through to primary producers and manufacturers (i.e. restaurant suppliers) who are also facing new challenges and risks associated with Brexit.  KPMG has developed a report showing how the cost of imported foods could potentially rise if a deal was not made before Britain leaves the EU and thus defaults to the World Trade Organisation’s customs rules (Article in The Guardian).

Chairman David Page advises the Group operates in a competitive and fragmented market which regularly sees new concepts come to the market (The Fulham Group PLC, 2016).  In this highly competitive industry Page explains in an interview to the Financial Times (“Fulham Shore buys”, 2016) his simple ‘recipe’ for the continuing success and growth of the company as being attributable to keeping the business formula simple, believing that volume and happy customers have more value than “squeezing the last pip out of the lemon”.

In focussing on the freshness and quality of produce used in its restaurants, the Group could be exposed to potential supply chain disruptions and other risks associated with destabilising of the market and UK economy as a result of Brexit.

Interestingly, in the company’s 2016 Annual Report, the Chairman noted the narrow majority for Brexit and assumes that the turbulence that this may cause to parts of the restaurant industry and the UK economy in general will last some time.  The Chairman goes on to explain further that they (the Directors) feel that as in previous periods of economic disruption, the restaurant businesses that offer best price/best product will prosper, as customers turn to real value for money (2016).

 

 

23 thoughts on “My Company

  1. Yay, another Foodie company. I like the detail you’ve given here. This is so well written and you are all over knowing your company. It seems like your company is very solid with where it is which isn’t a bad thing. my reading suggests that my company is on a little bit of shaky ground at the moment. Good luck with the rest of your assessment.

    Liked by 1 person

    1. Hello and thank you very much for your comments. I was wondering if anyone else had a company in the food industry as I would like to compare. I will be heading over to your blog site soon to check out your company info. Cheers, Robbie T

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  2. Hi Robbie T,
    What a phenomenal effort! I think you have covered the background of the company incredibly well, gleaned valuable information from The Fulham Shore’s Annual Reports and addressed the future direction of the company. At first glance, it looks as though you have covered everything.

    Where are you at with the spreadsheet? I would have liked to have seen this too, and maybe a few thoughts on its presentation compared to others. Not to worry I’m sure it’s coming.

    By comparison, my assessment looks terrible! At the moment I have a jumbled mess of incoherent thoughts, and even if I had another month I would still be editing and picking at things! I have struggled with drowning in the details and need to just get the salient facts in some logical order. As I progress, and the deadline looms, I am finding that this assessment is significantly larger and more complex than I originally thought and I simply haven’t allocated enough time to complete it. YES, I’M STRESSED!

    Cheers, Kelly

    Liked by 1 person

    1. Hi Kelly, thank you so much for your comments. Like you I am very stressed at the moment with all of the challenges presented to me and having looked at some others work now I am not happy with mine at all and could just keep picking at it forever. After 30 odd years of having such a formal writing style with work I am struggling a lot with the reflective style of writing in this assessment and don’t feel as though I have quite got it yet in that respect. At least we have plenty more KCQs coming up in this unit so I am hoping to have grown my skills in this area significantly by the time I write the last one! 🙂 I have posted my spreadsheet now after struggling with it for several days. I have seen some of your work so far and I think you are doing an amazing job, especially with your comprehensive feedback to others, this is so very valuable and important to the people you are feeding back to. Looking forward to further collaboration with you. Cheers, Robbie T

      Liked by 1 person

  3. Robbie T,
    Sorry, I forgot to mention I chose your blog as one of my Top 3 blogs in my assessment. I haven’t posted my draft yet but I’ll get back to you when I do so you can read why I liked your blog so much.
    Cheers, Kelly

    Liked by 1 person

    1. Thanks so much for your vote of confidence Kelly, I feel very honoured and overwhelmed with being selected as a top 3 blogger given my huge lack of confidence and experience with online communications. Also the comments and feedback you have given me so far has been amazing and has given me a boost in confidence so thank you very much for playing such a valuable part in my increased confidence levels. Cheers, Robbie T

      Liked by 1 person

  4. Hi Robbie,

    I really enjoyed reading your about your company. You have structured this very well and it was easy to follow. All the best and I’ll keep watching this space.
    Regards, Jacky

    Liked by 1 person

  5. Hi Robbie
    What a contrast to your first blog and well written as well. Congratulations.
    I learnt that your company is mainly serving in London, and builds small local brands of restaurants. I liked the idea that the company likes to reinvest profits into the business by opening new restaurants and to develop staff and provide incentives such as profit sharing. I am wondering who you may think their target market is for their restaurants? I wondered about it being 4 years from opening in 2012 till 2016 to report a profit and if that may be because of reinvestment or start up costs were recouped after a few years. I thought that only having part of the company in public hands provided a buffer, for the future for what if, when England leaves the EU. However would it be wise to invest in English companies until the separation from the EU and its effects are clear, do you think England separating from the EU could be a risk for the company? Do you think that it may be a buyers market and there could be some good buys for the company with people uncertain about the economic future of England.? I hope so.
    We had some exchange students from England a couple of years ago and they often commented about their love of fish and chips and Indian food back home. It was staple fare.
    I think that I like the formatting of your blog and the use of pictures and space.
    There was a comment about supply chain disruptions ,and my company Qube Holdings specialises in logistics and sea cargo frieight. I was thinking that outsourcing to a logistics company could support these disruptions for your company and reduce down time or food and supplies not arriving on time.
    Look forward to your next blog
    Kind regards
    Wendy Armstrong

    Liked by 1 person

    1. Hi Wendy, thank you for taking the time to provide comments on my company background. You have raised some interesting points which I intend following up on further. Currently I am stressing out a bit about the first assessment and am a little bit behind schedule but I definitely look forward to having further discussions with you about our respective companies. Cheers, Robbie T

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  6. Hi Robbie,

    I enjoyed reading about your company, you have showed so much detail with being able to get straight to the point. I have found it intersting how Brexit is having an impact on your company. I had to also look into more world issues and politics that are having an impact on China right now as could have potential effect on the Tourism segment. you will be able to read about it more when I submit my draft later on today.

    I am also going to use your blogs as one of my top 3 as I feel you have put a lot of effort into creating it and spent a lot of time researching about your company 🙂

    Look forward to reading more.

    Kate.

    Liked by 1 person

    1. Hi Kate, thank you so much for your comments and thank you so much for nominating my blog in your top 3. I am overwhelmed with the support I have received from my fellow students and look forward to giving back as much as I am getting. Given that I have no confidence when it comes to online communication your feedback has gone a long way to increasing my confidence and for that I am very grateful and very thankful. I am a little bit behind schedule at the moment but I plan on getting feedback done for others by the deadline this week and I am very much looking forward to reviewing your company info. Cheers, Robbie T

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    1. Hi Deonne, thank you so much for your positive comments, I have been overwhelmed by the support shown from fellow students. I am a little behind schedule at the moment but I will definitely check out your blog and comment today. Good luck with your studies and I look forward to collaborating with you this term. Cheers, Robbie T

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  7. Hey,
    Your company sounds amazing, the way you’ve set out your work and the way you’ve explained in depth the information you must really enjoy learning about The Fulham Shore company. Have you developed a desire to sit at one of their restaurants and try their food? I enjoy new food destinations so i can understand the keenness to learn about the food industry.

    I love it.

    Thank you for sharing

    Liked by 1 person

    1. Hi Kristal, thank you very much for your positive comments. And yes, reading about all these great restaurants run by The Fulham Shore does make me hungry! Although the UK is a bit far to travel for lunch, I would like to sample some of their food for sure. Good luck with your studies and looking forward to collaborating with you this term. Cheers, Robbie T

      Like

  8. Hi!

    It was a delight reading through your blog (and made me feel very hungry). Thank you for the easy to read layout that was full of useful information, it really did give an in depth insight to The Funham Shore Company. You certainly made it into my Top 3 Blogs!

    Monique x

    Like

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