Byron burger chain rescued by Gen Z investor
The struggling high end burger chain Byron has been saved from a third collapse by a Gen Z entrepreneur, who has snapped up the troubled business for £2.5m.
First reported in The Times, the business has been bought by Niyamo Capital, founded by the Indian born investor Akshat Tibrewala, securing the future of the brand which has been slapped with rising costs and numerous scandals in recent years.
The sale comes after Bryon’s former owner, Tristar Foods, said it planned to appoint administrators in September.
The 21 year old is understood to have injected approximately £2.5m into the company and taken a majority stake, while the London based private equity firm Calveton UK will retain a minority holding.
The deal also includes Byron’s sister brand Mother Clucker, which sells fried chicken on Deliveroo.
For a younger audience
Tibrewala is planning a major overhaul of the business to appeal for a younger audience by updating its menu, investing in the company’s digital capabilities and expanding into international markets such as Dubai, which has seen an influx of young professionals over the past year.
He said to The Times: “What we essentially want to do with Byron is look at the identity…and rebrand it for new consumer tastes and preferences, whether that be smashed [burgers] or different concepts that are relevant nowadays.”
Tibrewala also acknowledged the growing “British presence” in Dubai, believing the market will give the brand “recognition as soon as” it enters the country.
Byron only has seven restaurants after years of trouble during which it collapsed into administration twice and changed hands multiple times.
Troubling times
At first, Byron, which was founded by Tom Byng in 2007, took off amid the casual dining boom of the 2010s, turning over more than £80m across 65 sites by 2016.
But the business soon found itself subjected to controversy, after then chancellor George Osborne tweeted a picture of himself eating a Byron burger just hours before announcing £11.5bn worth of government spending cuts in 2013.
Critics said the move showed the chancellor was out of touch with working people.
Meanwhile, in 2016 an immigration raid in the company’s Holborn branch in London led to 35 workers being rounded up for deporation.
Bryon said at the time it was unaware of workers using counterfeit documents and had been legally obliged to comply with the Home Office, but the incident sparked protests and calls for a boycott.
By 2018, the chain was under increasing financial pressures, as costs and taxes on high street businesses rocketed, leading to Byron changing ownership, shedding hundreds of jobs and the number of stores tumbling.
But, Tibrewala still believes the “fundamentals of the business are good”, as the company pulls in over £11m in revenue each year despite the greatly reduced number of stores.
He said: “We looked at the numbers, we figured that with some operational efficiencies and cost reductions, we can get this across into the green.
“November was a good month for us.”