Restalia, the restaurant giant that owns chains such as 100 Montaditos, TGB-The Good Burger or Cervecerías La Sureña, consolidates the franchise aid plans carried out during the pandemic to avoid price increases. José María Capitán, its president and founder, defends that the group is a refuge value.
How has Restalia overcome the pandemic?
Without a doubt, restoration has been one of the sectors hardest hit, so acting quickly was key. Our top priority was to support our franchisees, launching different aid packages to face the restrictions imposed by the pandemic. Similarly, we strengthened our sales channels, such as delivery, and launched Restalia Retail to sell some of our products in supermarkets under our Home range. We also dedicate a large part of our efforts to innovation, evolving our brands, which has allowed us to celebrate 22 years in the market, being faithful to our customers with our smart cost policy.
With what level of sales have you closed last year?
2021 was a very positive year, despite the economic crisis, and we were very close to matching our 2019 sales. We closed the year with more than 1,800 points of sale divided between franchise business units and more than 1,050 points of sale from products in retail surfaces.
We closed the year with more than 1,800 points of sale between retail and franchises
How have franchisee support initiatives influenced these results?
Since the beginning of the crisis, we were very clear that we had to help our franchisees and, for this reason, we launched different aid packages, from discounts and aid on strategic products (both food and drink), to improvements in the way of paying suppliers , aid to adapt outdoor spaces and terraces, purchase of stoves in which we assume 50% of the cost, we also assume 50% of the cost of delivery, and a long etc. And now, with the inflation rate close to 10% and supply problems, we have extended our contingency and price containment plan to avoid increases to our franchisees at least until September 1. All this has caused the interest in franchising with us to double: which makes us a priority option when starting a business in this sector.
What are the growth plans for this year?
Our objective is to consolidate ourselves in the national market and reinforce our growth at an international level. We intend to reach 1,000 business units in the coming years (752 at the end of 2021) and be the first Spanish restaurant chain in the rest of the world. In Spain we are working on a new commercial project that will allow us to cover every corner of the Spanish geography, responding to demand. Internationally, our priority market is Portugal, where we intend to open 30 units this year. Precisely in the Portuguese country we have just opened a store with our third brand, Pepe Taco, and we will have a presence of our five brands before the end of the year. We are also working to open a 100 Montaditos store in the main European capitals. In Latin America, Mexico will be one of the markets on which we will focus the most. Of course, we will continue to strengthen the rest of our channels.
How is your retail division doing?
Creating this division was a great success and, furthermore, we are in luck, since we have managed to overcome the barrier of 1,200 shelves nationwide. In addition, we have recently started working hand in hand with Condis in Catalonia, which will help us to have a greater presence in that autonomous community. In the last four months we have grown 67% compared to the previous four months.
What opening plans do you have for each brand?
100 Montaditos continues to be our flagship, faithful to its strategy and business philosophy. With a strong national presence, the biggest bet will be in international markets. We have just inaugurated the evolution of our TGB brand, where we have changed the menu with larger hamburgers, as our customers requested. We have also worked on the restyling of Cervecería la Sureña Jarras y Tapas and there will be news with Panther (whose eighth store we just opened a few weeks ago, in Atocha) and Pepe Taco. The key lies in maintaining the illusion of everyone, franchisees and customers, with constant news.
What do you think the success of the Restalia model is based on?
On four very clear premises: we encourage entrepreneurship with our neo-restoration model, which favors self-employment, as well as being a solid bet for investors; constant support for the franchisee, who has a team behind him that always accompanies him in his business; democratization of gastronomy thanks to our smart cost philosophy, ensuring quality, which is possible thanks to the volume of business we handle; and constant innovation, with an R&D team that is always testing new concepts and proposals before a very demanding client.
How have you managed to maintain consumer interest in the 100Montaditos model?
It is a simple model, but inimitable. One-price menus, commercial philosophy (Euromanía, with most of the menu at 1 euro, including drinks, has been in force since 2008), and a social environment that favors sharing moments with your friends and family, so typical of Spanish culture. We are loyal to our clients because of our business strategy, and they are loyal to us.
What plans are there with La Sureña?
Cervecería La Sureña Jarras y Tapas has just released a restyling. The first one was in the Tres Aguas Shopping Center and after its success we have already proceeded with three openings in Elche, Valencia and in the La Vaguada Shopping Center in Madrid. This expansion and opening plan will continue during 2022 with a forecast of eight more renovations and 20 new brand openings.
Do new brands fit in your portfolio?
At Restalia we have innovation in our DNA, we work with a vision of the future and we like to explore new horizons. Our R&D department has a team that is exclusively dedicated to researching innovations and trends not only in Spain, but also outside our borders. We are in constant movement, to be able to develop and improve new concepts and products and always be up to date in order to offer our consumers what they are looking for.
Our contingency plan until September 1 has the objective of not passing on the increase in raw materials to franchisees
Speaking of innovation; They did tests with drones, how did they go?
The tests were a success and we continue working on the development of this and other innovative delivery methods. We have plans for new tests and we are studying how to implement this format in our distribution lines. We like to test and risk, so we will continue to do so with these and other measures.
How does rising costs and inflation affect you?
As everyone. An inflation of almost 10% undoubtedly affects the pockets of entrepreneurs and customers. But that is why I insist on Restalia as a safe haven for consumers and franchisees. For the end user, because we continue betting on price containment despite the rise in raw materials, since we are betting on increasing the volume of sales, and not on rising prices; and for franchisees, because we constantly launch support packages, such as the last contingency plan that we have in place until September 1 with two clear objectives: not to pass on price increases in raw materials to franchisees and to carry out a reinforced analysis of the product supply chain.
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