The Breakfast Club, the licensed all-day cafe concept which was launched in London’s Soho in 2005, has topped a list of the UK eating and drinking-out market’s fastest-growing companies.
The brand has emerged ahead of the competition in this year’s AlixPartners Growth Company Index, the annual list of the 50 fastest-growing companies in the UK bar, pub and restaurant market, compiled in conjunction with the specialist research and insight group MCA, formerly M&C Allegra.
The company, which was founded by by Jonathan Arana-Morton and his sister-in-law Alison Rooney, is known for its American breakfasts, permanent queues and, at some venues, speakeasy-style basement bars.
The highly-regarded company, which now operates eight venues, after last year opening its first regional cafe in Brighton and its largest unit, in Canary Wharf, generated a compound annual growth rate (CAGR) of 147.4% – as measured over three sets of annual accounts. The performance saw it take top spot in the index ahead of Krispy Kreme (145.7%) and BrewDog (138%).
This year’s top 10 was completed by (in order, from 4-10) Bill’s (119.6%); Leon (118.0%); Wahaca (96.0%); Loungers (76.1%); Ed’s Easy Diner (70.6%); Corbin & King (64.9%) and New World Trading Company (63.0%).
Highest climbers in the list were Wasabi, up 29 places to 18th (32.4%) and Pho, up 21 places to 29th (16.5%). The highest new entry was New World Trading Company in 10th place, closely followed at 11th in the list by Byron (45.9%).
AlixPartners’ Paul Hemming said, “This year’s result demonstrates the sector's ability to deliver stellar profit growth when a high-quality operation is combined with a compelling consumer offer, and rolled out. Breakfast Club is a great example and has been achieved alongside a commitment to corporate social responsibility that stands out in the market.
'The results also highlight the sector's strong performance with increased levels of growth across the top 50. In 2016 compound growth of 5.5% ranks 50th when a similar performance in 2015 would have placed a business at number 36.
“Sustaining high levels of profit growth is never easy and the risks of losing consistency and standards are very real. However, there are a strong core of businesses that have featured on every profit tracker and these should rightly be lauded as the stars of the industry.'
MCA editor Mark Wingett said, “As with previous years, the 2016 AlixPartners Growth Company Index has thrown up some interesting nuances, showing continued, concerted growth for the more established brands and a further strong showing from traditional brewers and pub operators. It has again highlighted that a new establishment is emerging with the likes of BrewDog, Bill’s, Loungers, Hawksmoor; Be At One and Leon cementing their places.”
The full list and analysis will be published in the upcoming issue of MCA Report, available mid-March.