Brexit could hamper pizza brand’s ambitious growth plans

Neapolitan pizza chain Rudy’s is targeting ambitious growth targets over the next four years, with plans to open 12 new sites.

But the Manchester-based group behind the chain, as well as popular bar and event brand Albert’s Schloss, admits Brexit could affect their expansion strategy.

Rudy’s, which has two sites in Manchester, one in Liverpool and one about to open in Birmingham, has been recognised among the top three brands in the UK, and the top 10 worldwide.

Roy Ellis, founder of parent group Mission Mars, revealed exciting plans for the brands during a Bruntwood Dines event in the Liverpool Rudy’s on the city’s Castle Street, hosted by landlord Bruntwood, their second event of its kind in a series of planned presentations.

He told guests the £35m-turnover group is aiming to open one Schloss a year, as well as one pub each year, and three Rudy’s a year over the next four years.

He said the Rudy’s unique selling point is its authentic Neapolitan recipe, created by chefs from the Italian city of Naples.

Mr Ellis said: “95% of our kitchen staff are Italian, and of that 95%, 90% are from Naples.”

But he acknowledged that the looming countdown to Brexit could affect future staffing arrangements as part of their expansion.

He told TheBusinessDesk.com: “I would be surprised if Brexit didn’t have some bearing.

“We are likely to go from total freedom of movement to some limited movement, based on qualifications or earning capacity.”

The effect on movement between the UK and Italy might not be immediate, but it would feed through eventually.

“We need to wait and see,” said Mr Ellis.

“It is probably a few years away, but there is the potential to affect the Italians already here, or planning to come.”

However, he added: “Business is always facing some kind of adversity. It is another challenge we will have to overcome.

“We could maybe set up a chef school or academy and bring up home-grown talent.”

Mr Ellis was one of the founders of the Revolution vodka bar brand which developed from six small bars in East Manchester.

In conversation with Andrea George, head of retail and leisure at Bruntwood, he revealed they had planned to build up a small portfolio of bars to sell, and to then move into the hotels business.

But realisation that their small chain would not generate enough capital led to them coming up with the idea for a vodka-focused brand and embarking on UK-wide expansion.

“We came up with the Revolution idea to make it transferable across the country. I didn’t think it would get to 75 bars. I never dreamed we would have 2,500 people working for our business, and a £140m turnover.”

Through Mission Mars he said they then created a successful bar and club business, but a vacant plot next door to Albert’s Schloss in Manchester’s Peter Street was the precursor to the rise of Rudy’s.

“We knew it would go to a bar, but we didn’t want trouble with a potential owner with 2,500 people queuing outside our bar for events upstairs.”

He said they had been researching the pizza market and had come across the people behind Rudy’s: “They loved doing pizzas, but not things like National Insurance, or VAT. We decided to acquire a majority and they remained to run the business. We now own 100%.”

Illustrating the pride Rudy’s takes in its product, Rudy’s managing director Neal Bates revealed the stringent quality control checks in all three venues every day.

“An alarm goes off every two hours on the pass and we have 15 checks on the quality of the three pizzas in the oven at that time.”

Bosses also take a hands-on approach to staying connected with the business. Mr Ellis said: “We do a ‘back to the floor’ thing in Rudy’s. Executives wash glasses and pots once every month, including myself.

“It’s a bit like the TV show, but we’re not under cover. That’s had a really good effect,” he said.