We’re committed to supporting innovative and ambitious businesses across a range of sectors. One of our customers that exemplifies authenticity and success is Sticks’n’Sushi, a Japanese restaurant group led by CEO Andreas Karlsson. Recently, we had the pleasure of running a webinar, hosted by OakNorth Debt Finance Director, Stuart Blair, and featuring Andreas alongside Harry Goss, Partner at McWin Capital Partners. In the session, they shared valuable insights into the Sticks’n’Sushi growth journey and offered advice for hospitality operators and investors.
The Sticks’n’Sushi story
Sticks’n’Sushi was founded in Denmark in 1994 and recently celebrated their 30th anniversary. Since opening their first UK restaurant in 2012, the group has expanded to 28 restaurants in total, including 13 in the UK and a presence in Berlin.
Talking about the group’s expansion, Andreas highlighted the importance of treating each new restaurant with the same care and attention as the first. “We avoid the term ‘roll out’ because we want to put enough love and attention into each restaurant as if it were our first,” he explained.
The business was recently acquired by leading private equity firm, McWin Capital Partners. McWin is a sector specialist with stakes in a number of chains, including Gail’s Bakery, Popeyes, Big Mamma, Vapiano, and Burger King Germany to name a few.
Strategic growth and resilience
One part of Sticks’n’Sushi’s success in the UK can be attributed to their site selection and planning. Andreas emphasised that good leadership and attention to detail are critical to opening successful restaurants. “Our formula for opening good restaurants in good locations involves giving the team running the restaurant the attention they deserve. They’re the ones creating the magic for our guests,” he said.
The past few years have been challenging for the hospitality sector, with inflationary pressures and fluctuating consumer confidence. However, Sticks’n’Sushi has demonstrated resilience. Andreas shared that business agility and a focus on multiple sales channels have helped them navigate these obstacles. “We’ve absorbed a lot of costs in the past couple of years rather than passing them on to guests because we prefer busy restaurants, which is better for both our guests and the team,” he noted.
Insights from McWin Capital Partners
Harry, from McWin Capital Partners, which has invested in several prominent restaurant groups, including Sticks’n’Sushi, offered valuable perspectives on what makes a successful hospitality business. He highlighted the importance of strong leadership, a compelling brand, and scalability.
Harry also discussed the benefits of scale without the pitfalls of becoming a restaurant conglomerate. By keeping their investments and management teams separate, McWin ensures that the culture and essence of each business are protected while leveraging the advantages of scale for procurement, IT, and delivery solutions.
Advice for hospitality operators and investors
For those looking to grow their hospitality businesses, Andreas offered sage advice. He stressed the importance of having the right personnel in place before expanding. “Never underestimate the importance of having the right personnel on board well before you start operating your third or fourth restaurant,” he advised. He also touched on the need to maintain focus on existing locations while expanding. “The first two restaurants will facilitate getting the third to profitability,” he added.
Harry echoed this sentiment, highlighting the need for a long-term strategy and the right people to execute it. “The skill sets for the management teams differ, but at a higher level, it comes back to having the right people and a long-term strategy,” he said.
The road ahead
In February 2024, we provided a £22m loan to support Sticks’n’Sushi’s future growth, which includes opening more locations across the UK.
At OakNorth, we’re passionate about backing businesses like Sticks’n’Sushi that demonstrate resilience, innovation, and excellence. Our relationship-based approach ensures that we understand the unique needs and goals of our clients, helping them navigate challenges and achieve sustainable growth.
The journey of Sticks’n’Sushi under Andreas Karlsson’s leadership is a powerful example of what can be achieved with the right strategy, team, and dedication. We’re proud to support their continued success and look forward to seeing their future achievements.
Thank you again to Andreas and Harry for joining the session and sharing your expert insights and experiences.
If you’d like to watch the full webinar, you’ll find the recording here. Or, if you’re interested in learning more, reach out to our team of experts.
