City Grill restaurant chain, controlled by businessman Dragos Petrescu through Totter Prim company, has received several partnership and takeover bids from different investment funds, which have all been rejected.
"We have not reached the level where an exit or partnership is of interest. Firstly, I believe our business is not mature enough and the price would not be the best right now," stated Dragos Petrescu, City Grill owner. The businessman would not reveal any information concerning the investment funds that have approached City Grill.
The company enjoys financial support from banks for the majority of its investments. "(...) More than 50% of sums earmarked for investments come from bank loans," said Petrescu.
Although Petrescu did not specify the group's estimated value, which is difficult to assess at the moment because of the dynamism of the business, turnover forecasts for 2010 indicate over 20m euros, double the level expected for this year. City Grill restaurant chain, which has six outlets, will expand in 2008 and open another 2 restaurants in Bucharest, in the former headquarters of Sector 2 Mayor's Office and the former Metropolitan Library, both privately owned locations. The first outlet will be opened in the wake of investments worth above 2m euros in real estate and refurbishment.
Besides restaurants, the company plans to open a boutique-hotel or offices and apartments, a decision that will be made by the company's management.
Also in 2008, Petrescu plans to open a location in Chisinau and Sofia, because the Bulgarian market is proving highly productive even for acquisitions.
The group will also open 2 coffee shops next year, probably in a franchise system, with preferred locations being both large business buildings and areas with large volumes of traffic, but rules out mall areas as, according to Petrescu "this market will be the first to decline".
Besides the 6 restaurants, City Grill also has two coffee shops, one of which is included in a franchise system. City Grill's sales are expected to hit 7.5m euros this year.
The medium-upper target will be covered by Buongiorno restaurant chain, which will reach 10 restaurants by 2010 in the wake of investments worth 4m euros. Investments per location will stand at 400,000 euros on average, with investments in these restaurants to be recouped in at least 5 years. "On the restaurant market, there's still enough room for more restaurants," believes Dragos Petrescu.
The hotel market is also small, particularly on the segment of 3-star hotels, where City Grill plans to acquire a location to service the business travel segment.
City Grill's competitors on the Bucharest market are La Mama, Trattoria Il Calcio and Ruby Tuesday.
Petrescu's "city"
n City Grill: currently operates 6 restaurants
n Buongiorno: by 2010 will have 10 restaurants, with investments worth 4m euros
n City Caf?: will open another 2 coffee shops next year
n Heritage: owns 6% in "Restaurantul Bancherilor"
n Caru' cu bere: the restaurant reopened last year in the wake of a 1.5m-euro renovation programme
n City Hotel: the group will also expand on the hotel market, with investments on this segment worth 7m euros
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