Yahoo Finance Hawksmoor in £100m sale talks as meat restaurants fight back against veganism
High-end steakhouse Hawksmoor is in talks to sell itself for up to £100m amid waning enthusiasm for veganism.
Investment bank Stephens has been reportedly hired to seek a buyer for Hawksmoor, which has been majority controlled by British private equity firm Graphite Capital since 2013.
Hawksmoor was founded in Shoreditch, East London, in 2006 and was credited with helping to revive the steakhouse concept in Britain. A Telegraph review of the chain’s Covent Garden branch, which opened in 2010, said: “The steak isn’t just great; it’s the best in London.”
The chain has since expanded to 13 branches, including an outpost in Dublin and two in the US, which is a stronghold of steakhouses. Hawksmoor’s New York restaurant, opened in 2021, won plaudits from the New York Times, which said it was “more than a case of bringing coals to Newcastle.”
Hawksmoor opened a new location in Chicago last week and proceeds from any sale are expected to fund further expansion.
Founders Will Beckett and Huw Gott are expected to retain their stakes, should a sale be completed. Hawksmoor did not comment on the report of a sale, which was first reported by the Financial Times.
However, Mr Beckett said: “We’ve got a great relationship with Graphite and together we are getting to know the US investment community in more depth. As that continues, an opportunity may emerge that we wish to explore together.” Graphite Capital declined to comment.
Attempts to find new investment come as diners return to meat after a short-lived boom in veganism faded. Consumers are losing interest in fake meat alternatives amid questions about their health benefits and an uptick in veganism seen during the pandemic has failed to maintain momentum.
Several formerly vegan-only restaurants have recently introduced meat on to their menus to attract customers.
Nomas Gastrobar in Macclesfield said it was adding sausages and bacon to its menus in January, after some customers refused to pay the full price when they realised options did not include meat.
Nick Allen, chief executive of the British Meat Processors Association, said: “Nobody in the meat industry is losing sleep about the rise of veganism at the moment.”
He said members were experiencing a “resurgence” in demand for steaks across both restaurants and supermarkets”.
Hawksmoor is expected to post underlying earnings of £10m for the year to the end of June, compared to £7m in 2022 and £2.9m in 2021.
Sales have risen 25pc at rival steak chain Gaucho over the past two years, with Martin Williams, its chief executive, saying its restaurants “have never been more popular”, particularly among younger people and women.
