Seagrass Boutique Hospitality Group hungry for growth

Seagrass Boutique Hospitality Group will open its ninth Meat & Wine Co steakhouse next month, kick-starting an aggressive expansion ahead of plans for an ASX listing.

Seagrass Boutique Hospitality Group chief executive Bradley Michael at the 6HEAD restaurant in Sydney. Picture: Adam Yip

Seagrass Boutique Hospitality Group is accelerating its aggressive growth plans in the wake of COVID-19, beginning with next month’s opening of its first restaurant in Adelaide.

The easing of border restrictions means the company’s chief executive Bradley Michael will be able to travel from Sydney to Adelaide to unveil the new Meat & Wine Co steakhouse, currently being fitted out in the historic Elder House building in the CBD.

It will become the ninth Meat & Wine Co to open in Australia, and will be quickly followed by a tenth venue in Canberra later this year.

Private equity-backed Seagrass operates more than 40 restaurants in Australia, including its Ribs & Burgers, Italian Street Kitchen and 6 Head venues.

Mr Michael said he was on the hunt for more sites across the country after shaking off the early impact of COVID-19.

Seagrass Boutique Hospitality Group chief executive Bradley Michael at 6HEAD in Sydney. Picture: Adam Yip

“In the beginning it had a massive impact because everybody was unsure of what the future was going to be like,” he said.

“People are social, they need to socialise, and if they feel like they’re in a safe environment, the place is clean and there’s a professional approach, then people will come - if you’re serving good food people will come.

“I told my staff that we would think bigger, that we would extend our expansion plans and make them bigger than they were before.

“I don’t think there will ever be an opportunity like this, over the next two years, for me to drive this business in a growth direction - I have the infrastructure, I have the people and I have the finances to do it.”

Last year Seagrass secured the Australia and New Zealand master franchise for US burger chain Five Guys, and will open its first outlet in the region in Penrith later this year.

Later openings are planned for the Sydney CBD, Melbourne, Queensland, Perth and then Adelaide.

“I’m not a master franchise agreement guy but when I met with the family that owns Five Guys, after meeting them and getting an understanding of their values and ethos, they were very similar to mine - their passion for people and food and a quality product,” Mr Michael Said.

“I think that type of burger they do, the old fashioned American burger, will do really well in Australia and New Zealand.”

Mr Michael founded Seagrass in 2011, eight years after relocating to Sydney from his native South Africa, where he spent 20 years in the country’s hospitality sector.

After expanding Seagrass across Australia and into Dubai, London and South Africa, the company secured a major partner in Sydney-based private equity group Crescent Capital Partners, which injected around $100m into the company in 2019.

Mr Michael said the deal formed part of a plan to build the company’s global portfolio ahead of a public listing.

“We’re working together over the next five to seven years to do a listing on the Australian Stock Exchange, and while COVID put a little dampener on that we’re still on track,” he said.

“The industry in Australia 15 years ago was dominated by hatted chefs, but there’s been a move towards the more casual and contemporary dining scene with great quality food and value for money.

“That’s the sector I’m focusing on and I’ve seen that sector grow, especially over the past ten years.”