Trade profile: Novus Leisure
After a financial restructuring, Novus Leisure is investing £7million into its estate and new ventures, reports Mark Ludmon
This month, new tiki bar Kanaloa opens in the City of London, created by Nick House and Piers Adam, the team behind Whisky Mist and Mahiki, the model for the new £700,000 venue. But this has caused a particular stir in the industry because of their partners: Novus Leisure, which operates about 40 bars in London and the rest of the UK including Tiger Tiger.
Designed by Design at Source, this is the first of many tiki-style bars planned, according to Steve Richards, chief executive of Novus. “I wanted to open an upmarket, fun cocktail bar in the City. I can’t think of a better example than Mahiki, hence the partnership with Nick and Piers. In addition, the business will learn a lot from working with the Mahiki team who are some of the best promoters in the sector.”
Kanaloa (originally due to be called Kanola) is just one of a number of projects from Novus since a financial restructuring in June, which resulted in a major reduction in debt and saw Barclays Ventures become majority shareholders followed by the management team, led by Richards, with 25 per cent of the equity. Novus is now investing £7million into its existing venues – £4million by October and the rest by February.
In September, Novus unveiled a new nightclub, Groovy Wonderland, in the basement of its existing venue, The Loop, in Mayfair, London. Created by Link Design, it is inspired by “1970s and 1980s music and style”, with a central colourful flashing dancefloor and classic cocktails. It follows the success of Groovy clubs at Tiger Tigers in Portsmouth, Croydon, Leeds and Newcastle.
Link Design also created The White Room, a new dance club and VIP lounge based on VIP sections in Ibiza superclubs, on the top level of its multi-storey venue, On Anon, next to the Trocadero in Piccadilly Circus. Again, the White Room concept has already been a hit within Tiger Tiger sites.
Then last month, Novus opened Grace on the site of the former Sugar Reef in Soho. Named after glamorous actor Grace Kelly, it is split into different sections: the Terrace Bar & Restaurant, the Milk Bar and Cocoa Club, with white leather banquettes and a black-topped bar.
Once market conditions improve, the group will look to expand through acquisition, but a key part of the investment strategy has been to develop its own concepts as well as forge joint ventures with well-known entrepreneurs, such as Martha Lane Fox and her Lucky Voice karaoke bars which are now within several Tiger Tigers.
The business has changed considerably, including its name, since it started as an investment vehicle to acquire the Trocadero in the mid-1990s. After John Conlan and Nick Tamblyn took the helm in 1997, it initially moved into intellectual property, such as Noddy, and became Chorion. They then acquired three bars from Luminar and, in 1998, launched the first Tiger Tiger. After massive expansion, the bars and clubs were demerged to form Urbium, which, after Richards arrived in 2005, become Novus. This name is played down, at least in London, where its venues are represented by the name of its consumer website, Latenightlondon.co.uk.
“The key is to differentiate from competitors and keep evolving the customer offer,” Richards explains. “The business has performed significantly ahead of budget this year, and we are seeing significant like-for-like sales growth driven by our determination to enhance our customer proposition. Fortunately, we are being helped by many of our competitors who are cutting costs that directly effect their customer experience.”
November 2009
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