London wine bar group Davy's plans expansion

By Gemma McKenna

Published: 02 October, 2013

Family wine bar group Davy's is looking to open two new sites in the capital this year as sales grow and confidence returns to the sector.

Chairman James Davy told Harpers the group had "an appetite to expand". "Ten years ago we had 45 sites, now we have 27 and we'd like to be somewhere in the mid-30s again. We're a small private business so we're not going to borrow money to do it. We've got to prove that we're out of the doldrums of the last five years before we do it."

He said the group had seen "encouraging figures with growth of 15% year-on-year in the last year".

Davy said he is actively looking for one site for its core Davy's brand by the end of the year, but that competition for new venues in London was fierce.

It has added two new brands to its portfolio in the last year: its American-style diner Lazy Bones and Factory House. It's planning a new Lazy Bones site in a higher footfall area - either a high street or transport hub location - later this year.

He said pressure to find the right sites was tough, as there's a lot of innovation and "some really well-thought out ideas" as well as a new appetite for venture capital backing for the sector. "It's something people want to be involved in," he added.

Spending on wine was beginning to increase, Davy said, as businesses have a "greater appetite to entertain" as confidence is creeping back. "I'm trying not to get too excited about it as it's been a long hard slog over the past five years," he added.

The group launched a reward card, Davy's Premier Cru scheme, back in March, which has so far attracted 6,000 members. Customers get at least 3% return on in-outlet spending that they can convert to wine which will be delivered to their homes. He said the firm had struggled to alert wine bar customers that Davy's could also supply wine through its off-trade arm. The new scheme has proved instrumental in raising awareness and is on-track to attract 10,000 members by the end of the year, he said.

The group recently opened the Cooperage, a subterranean cocktail bar complete with original Victorian vaulted ceilings, under its Greenwich store.

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