Demand for theme restaurants continues with the forthcoming opening of The Dream Factory on Regent Street. Mark Simmons goes in search of some winning ingredients.
Dine in London’s West End and you may find yourself following Dorothy down the Yellow Brick Road. Not literally, of course, but on the silver screen. The Wizard of Oz will be one of the classic films showing at The Dream Factory, a novelty restaurant that is due to open towards the end of this year. Appropriately, the building that will house the eaterie is 123 Regent Street, the former New Gallery, which housed the Electric Cinema. Landlord Crown Estate has let 1,858m2 (20,000 sq ft) to Greenhills.
The restaurant will be fitted out to resemble a large movie studio and will include a number of film sets from movies such as Casablanca, Gone with the Wind and Jail House Rock. Greenhills has concluded a licensing agreement with Turner Home Entertainment, which owns the rights to an extensive film library, and Pearson subsidiary Tussauds Group will jointly manage the operation. Entertained diners will also be tempted to buy memorabilia, music, videos and other merchandise in an adjoining shop.
Alison Littlewood of Hillier Parker, which advises the Crown Estate, notes that the retail element is very important, as it is in the US, which is where the themed concept is being imported from. Merchandising can account for 40% to 50% of revenue. The trend for including retail has pushed up the size of units required; theme restaurants are typically over 1,394m2 (15,000 sq ft), reports Littlewood. “Lots of unusual buildings that don’t lend themselves to conventional commercial uses can be used by restaurateurs who have the flair to make them work,” she says.
The Dream Factory is just one of an increasing number of theme restaurants. Also in the pipeline is a bar-restaurant modelled on that in the American TV series Cheers. Hillier Parker, together with Healey & Baker, is acting for Cheers (UK) Ltd (Paramount Pictures) and is searching for approximately 557m2 (6,000 sq ft) in which to create that authentic Boston feel.
Littlewood says that landlords may be able take advantage of the interest in the current vogue for themed eateries: “There is certainly healthy demand, and if you have an unusual building there is potential for a premium. You can get a healthy rental, but it often goes hand in hand with long rent-free periods to reflect the cost of conversion.” These can be substantial: in the case of The Dream Factory, alterations could cost up to £5m. The only obstacle to the ambitions of blockbusting restaurateurs are Westminster council’s planning regulations. Steven Spielberg’s concept restaurant The Dive, already operating in the US and featuring the nose of a submarine jutting out of the front of the restaurant, is unlikely to impress local planners.
Healey & Baker partner Ray Dowse says that opportunities for themed restaurants may be drying up: “The limited availability of large sites is pushing rents higher. However, the market is not just for themed restaurants as there remains an underlying requirement for much smaller accommodation. Again, however, the properties available are scarce.” Dowse cites the example of a traditional wine bar operator currently searching Mayfair for premises between 139m2 and 279m2 (1,500 sq ft and 3,000 sq ft).
Mayfair remains popular with the more conventional restaurateurs. Terence Conran recently gained planning consent for a new venue on Heddon Street. The 604m2 (6,500 sq ft) Zinc Bar & Grill, with space for 140 diners, is due to open at the end of the year. And at 47 Maddox Street, Jeremy Mogford recently opened the first of two Browns restaurants in the West End. Already popular with the property profession, regulars look forward to the opening this summer of the second venue in Covent Garden. Located in former court rooms at 82-84 St Martin’s Lane, Browns secured the property after the former tenant, the Lord Chancellor, failed to serve due notice and so forfeited a new tenancy. Which, professionals are quick to point out, underlines the importance of good advice . . .
Key transactions
- 123 Regent Street: The Crown Estate, advised by Hillier Parker, has let 1,858m2 (20,000 sq ft) to Greenhills on a 25-year lease at a rent in the region of £400,000 pa, with nine months rent-free. Butler Richards acted for the tenant.
- 47 Maddox Street: London & Regional Properties, advised by Healey & Baker, has let 536m2 (5,766 sq ft) on ground and basement floors to Browns Restaurants on a 25-year lease at a rent of £80,000 pa.
- 65 Regent Street: The former British Airways building has been let to L’Odeon. A rent of about £200,000 pa was agreed on the 1,394m2 (15,000 sq ft). Healey & Baker acted for landlord St Martins Property Corporation.
