The Urban Purveyor Group is planning “aggressive” growth likely to see initiatives such as the franchising of its popular Bavarian Bier Cafes.
Late 2014 UPG appointed veteran Tom Pash as CEO, with founder John Szangolies assuming the role of executive chairman. Pash has previously been CEO of a US REIT that amassed a $2bn hospitality property portfolio.
KPMG Corporate Finance has reportedly been appointed to find a capital partner and issued a memorandum to prospective buyers. The AFR reported the pitch could even lead to the sale of the entire business, estimated at around $200 million.
The Group currently operates 20 venues on the East Coast, including ten Bavarian Bier Cafes and four instalments of Sake Restaurant, and generates around $170 million revenue annually.
An ambitious plan mapped for the next four years could see a dramatic increase in the Bier Cafes and restaurants, and expansion into Asia-Pacific and New Zealand.
“We really think we can double the company again and get closer to half a billion market share,” said Pash. “We’re looking at franchising our Bavarian Beer Café and that’s something we’ll debut later this year.”
Pash cited the existence of “large restaurant groups in Europe and the US” and the lack of these in Australia, but sees this as a future for the Group.
“I think the market is starting to understand.”
German-born Sangolies started the business back in the 1970s with the Lowenbrau Keller, in The Rocks. UPG also operates the successful beer importer Urban Beverage Imports.