Wagamama
Wagamama is a chain of Japanese noodle restaurants. Graphite invested in the company in 1996 when it operated just two restaurants. Both outlets were extremely popular with a cover turn of an incredible 12 times a day. The restaurant offered excellent healthy food at reasonable prices to a wide range of customers.
Wagamama benefited from the increasing popularity of ‘eating out’ in the 1990s. The ability to ‘test’ and ‘prove’ the restaurant in a number of diverse locations was a primary attraction of the business to Graphite. An experienced management team was recruited and the business was expanded across the UK and overseas, where it met with almost universal success.
![](https://www.graphitecapital.com/wp-content/uploads/2023/06/Wagamama-2000x546-1.jpeg)
Key Business Achievements
Modified its operating model to be successful across a wide variety of locations
Grew its number of restaurants from two to 70 in the UK and 36 abroad
Increased turnover from £2.5 million to over £110 million
Grew operating profit from £0.4 million to over £20 million
Was voted most popular London restaurant in the Zagat restaurant survey
12.8 x
Return on Graphite's Investment
Business Exit
In 2005 Graphite sold a majority stake in Wagamama to Lion Capital. In 2011 we sold the remainder of our investment to Duke Street in a transaction valued at £215 million, generating a multiple of 12.8 times cost and an IRR of 37 per cent.