Partners Group Explores Sale of UK Restaurant Chain - InforCapital

Partners Group, the Swiss private equity firm, is exploring a sale of Côte Restaurants, a French-inspired casual dining chain in the UK. Interpath Advisory has been appointed to manage the process, according to a report by Sky News.

Partners Group acquired Côte out of administration in autumn 2020 in a deal reportedly worth £55 million. At the time, Côte operated nearly 100 locations across the UK. That footprint has since declined to just over 70 restaurants, with approximately 60 still profitable. The potential sale may lead to further closures amid a challenging trading environment, sources said.

The company reportedly generated over £150 million in revenue in 2023. Interpath is marketing the business based on this financial performance, though market conditions remain turbulent.

The move comes as the broader UK hospitality industry grapples with high inflation, labour shortages, and cost pressures. Kate Nicholls, CEO of UK Hospitality, recently warned of potential job losses of up to 200,000 if policy uncertainties—especially around national insurance contributions—are not addressed.

The planned divestment marks a pivotal moment for both Côte and Partners Group as they evaluate long-term strategic options in an increasingly competitive consumer landscape.

Other Partners Group Deals in the Sector

Partners Group has an extensive track record in consumer and hospitality assets across Europe:

• TOCA Social (UK): In 2022, Partners Group acquired a significant stake in the experiential football and dining concept TOCA Social, helping it scale locations across London and international markets.
• Breitling (Switzerland): While in the luxury retail segment, Partners Group partnered with CVC to support global expansion of the iconic watchmaker, aligning with rising demand for high-end experiential goods.
• Vivo Cannabis / Nature’s Way Foods: Though more adjacent, Partners Group has previously explored food and wellness sector plays including Nature’s Way (UK-based prepared salads and fruit business), highlighting its broader interest in consumer staples and premium brands.
• Pacific Lake Partners (US/Europe): Partners Group has co-invested in mid-market platform rollups that include restaurant franchising portfolios, part of a global strategy to back scale-efficient consumer operations.

These deals reflect Partners Group’s strategy to back stable, cash-generative brands with scalable footprints and loyal consumer bases. While Côte initially fit that strategy, current macroeconomic pressures may prompt a timely exit.