High Demand Drives Flat Iron to Explore New Investment or Sale Opportunities
Posted by Emma on 28th Oct 2024
Flat Iron, the popular steakhouse chain, is considering strategic options for its future following an impressive year of record sales. In a move that has caught the attention of industry insiders, Flat Iron has appointed City advisers from Houlihan Lokey to assess potential avenues for growth. These options range from bringing in third-party investors to a possible business sale.
The chain, launched in 2012 as a pop-up venture above the Owl & Pussycat pub in Shoreditch, east London, quickly expanded to a permanent location later that year on Beak Street in Soho. Today, it boasts 16 restaurants across London and other UK cities, including Cambridge, Leeds, and Manchester. With a clear vision to keep expanding, Flat Iron plans to add four to five new sites annually. Its 17th location is set to open in London’s Victoria next month, with another slated for the South Bank in March.
According to its latest financial accounts, the chain saw an impressive 38% jump in sales, reaching a record £49.6 million for the 12 months ending in August. The rising demand has positively impacted the company’s profitability, with underlying profits climbing from £3.8 million in 2023 to £5.7 million this year.
Flat Iron was founded by Charlie Carroll, who envisioned a unique space in the market for high-quality yet affordable steakhouse dining. Seeking to fill the gap between premium, high-end steakhouses and more standard mass-market options, Carroll created a dining experience that resonated with customers. His success caught the attention of private equity, and in 2017, Piper invested £10 million for a minority stake. Piper then appointed Tom Byng, formerly of the Byron burger chain, as a non-executive director. Carroll retained control initially but later passed the chief executive role to Byng in 2021 when Piper became the majority shareholder.
With its consistent growth and appeal, Flat Iron’s next steps have become a point of interest in the restaurant sector. The review process currently underway reflects the company’s intent to position itself strategically for sustained success in an evolving dining landscape.
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