Interview with Kieran Sherlock, Imbiba Property Director

Tell us a little about you how you got to be Property Director at Imbiba…

Well I was inspired to become a Chartered Surveyor at the age of 15 by my sister’s boyfriend at the time who was driving a nice new Vauxhall Cavalier. That was enough to encourage me to go to Sheffield Hallam University (it was a Polytechnic back then!) to study Property. I then went on to work in Acquisitions for Whitbread Property followed by M&B where I was acquiring for brands such as All Bar One, Vintage Inns, Harvester and Holiday inn Express. Following a few years out on my own doing a bit of residential development and self-storage, I got pulled back into hospitality to join a then 10 site YO! Sushi where I stayed for 12 years and helped grow the business to nearly 100 sites worldwide. 

“Over 12 years we helped grow the YO! Sushi business from 10 sites to nearly 100 sites worldwide. ”

When I left YO! three years ago, I decided I liked working with founder led F&B businesses that wanted to grow, so I set up as a part time Property Director working with Pizza Pilgrims in the first instance. I was then introduced to the Imbiba backed businesses Vagabond and Farmer J, working with the founders to grow the business. Joining Imbiba as Property Director was the next logical step and in June 2019 I came on board.

Why did you seek to work with Imbiba backed brands? 

I knew that Imbiba had a great reputation in the market for helping entrepreneurs grow their businesses, and that they also were strong on Property as well as having Operations, Finance, and Marketing expertise within the team. I also really liked the stable of businesses within the Portfolio, which were exactly the type of businesses I wanted to align myself with.

“Imbiba has a great reputation in the market for helping entrepreneurs grow their business. ”

As a Property Director working across a number of different businesses, how have the events of the last six months influenced how you work?

Well it has been quite emotional! As we all know it has been a very challenging time for everyone in our sector and beyond, and that looks set to continue. I have found the whole conundrum of sorting out the landlord and tenant situation both draining and intellectually stimulating in equal measures. What I have learnt when it comes to very difficult negotiations around rent relief measures is that every site and every landlord and tenant situation is unique and needs to be approached in that way. There is no cookie cutter solution to the ongoing challenges we face between landlords and tenants. I believe strongly that integrity and consistent communication are essential as we navigate the minefield, and that a joined-up approach between founders, Property Director, and the landlords is the way to get the best outcomes. 

“Integrity and consistent communication are essential as we navigate our way through current times.”

What is your take on the current state of the F&B property sector?

Well that is quite a big question! What I can say is that it there is a surprising amount of activity, considering the trauma within the sector. We all know about the plight of the larger casual dining brands and there have been and will continue to be many more sites coming to the market. Demand for sites in good neighbourhood locations is fairly solid, and I can think of several examples of sites which have attracted half a dozen offers, especially sites that are fully fitted. Rents have definitely fallen and if I were to quantify that I would say that the range is between 20-40% depending on location. Premiums have all but disappeared with a few deals still being done mainly sub £100k. Landlord incentive packages have increased and we are typically looking for at least 12 months rent free and 12 months capital contribution.

“There is a good opportunity for well backed quality businesses to grow during this uncertain time.”

What other changes are you seeing in Post Covid transactions?

From a tenants’ perspective, capping rent reviews and service charge is becoming the norm. I have not heard of anyone agreeing upward and downward rent reviews yet, but most deals will have an element of turnover rent which partially deals with that point. I have agreed COVID clauses in some leases which set out what happens in the event of a further lockdown. This is a very complex issue as it is difficult to know what is the correct formula. It is very unlikely that the landlord will want or indeed be able to take on all of the risk. Landlords are now looking even more closely about who their proposed tenant is, how strong their concept is, and who are they backed by. This presents a good opportunity for well backed quality businesses to grow during this uncertain time.

What have you being doing to keep yourself positive and in good shape during these trying times?

Well firstly, I feel very lucky to be part of a very close team here at Imbiba, with a huge amount of experience over many years in the F&B business. We all live and breathe hospitality, and I personally have been inspired by the actions of our portfolio businesses under huge pressure. We get out as a team as much as possible to support our portfolio businesses and help navigate the times ahead positively. And apart from going to lots of pubs and bars… I like riding my Brompton around London, going to meetings and viewing sites, and in September I completed the Cycle 300 miles challenge for Cancer Research and raised a good amount of money for that incredible cause. I am also a long suffering West Ham fan, and enjoy skiing and snowboarding (when we are allowed to go!)

Kieran is Property Director at Imbiba - if you would like to get in touch please drop him a line: kieran@imbiba.com