Wagamama: a story of international scope

5 August, 2010

by Peter Martin

The news that Wagamama is being put up for sale by its private equity investor is more than just a domestic UK restaurant story – evidenced by the coverage it attracted in the Wall Street Journal. The Asian noodle chain is now an international brand, and it is not inconceivable that it could be a target for a major global operator, writes Peter Martin.

The British restaurant scene is no stranger to overseas investment, mainly in the form of global private equity houses. Lion Capital, Wagamama’s current backer, works out of New York as well as London. But why shouldn’t a strong UK-based operator with an established international presence be of interest to one of the big, particularly American, casual dining groups?

UK concepts have been proving they can cut it on the international stage, even if British-based investors have been generally negative about overseas opportunities. Whitbread’s coffee brand Costa, in particular, has led the way. But Caffe Nero, Gourmet Burger Kitchen, Yo! Sushi, Ping Pong and, of course, Wagamama are among others to grab footholds. The international potential of British-born brands should be taken more seriously.

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