NoHo Partners and Better Burger Society: A Strategic Separation in the Culinary Landscape
April 3, 2025, 11:27 am
In a move that echoes through the corridors of the European restaurant industry, NoHo Partners Plc has announced a significant separation from its subsidiary, Better Burger Society. This decision, effective April 1, 2025, marks a pivotal moment for both entities as they chart their own courses in the competitive culinary landscape.
NoHo Partners, a titan in the Northern European restaurant market, has been a key player since its inception in 1996. With a portfolio that boasts around 300 restaurants across Finland, Denmark, Norway, and Switzerland, the company has built a reputation as a creative innovator. The recent separation from Better Burger Society, however, signals a shift in strategy, one that aims to streamline operations and focus on international growth.
Better Burger Society, known for its premium burger offerings, has carved out a niche in the burgeoning European burger market. The company operates popular chains like Friends&Brgrs in Finland and Holy Cow! in Switzerland. As of now, it has 31 Friends&Brgrs locations and 18 Holy Cow! restaurants, with plans to expand further. The separation allows Better Burger Society to pursue its growth ambitions independently, while NoHo Partners retains a significant stake, holding 50.7% of the company.
This strategic move comes with a financial twist. NoHo Partners will see its voting rights in Better Burger Society decrease to 49.6%. Despite this reduction, the company remains the largest shareholder, ensuring it retains influence over the burger chain's direction. The financial implications are noteworthy; the separation is expected to yield a positive non-recurring impact of approximately €20 million on NoHo Partners' results, boosting earnings per share by about €1.0 in 2025.
The separation is not merely a financial maneuver; it reflects a broader strategy. NoHo Partners aims to optimize its balance sheet and focus on active investment activities in its international business. The company’s CEO, Jarno Suominen, has emphasized the importance of this move in aligning with their long-term vision. The initial investment in Better Burger Society was around €7 million in 2020, and the current fair value of that investment has surged to approximately €45 million. This growth underscores the potential for value creation in the restaurant sector.
As Better Burger Society embarks on its independent journey, its growth strategy remains clear. The company plans to continue expanding through acquisitions, merging local premium burger brands with efficient operational models. The goal is to enhance procurement synergies and streamline operations, positioning itself as a leader in the premium burger segment across Europe.
In 2024, Better Burger Society reported a turnover of €80 million, and it aims to open five more Friends&Brgrs locations in Finland and six Holy Cow! restaurants in Switzerland this year. With these new openings, the total number of restaurants is expected to rise to around 60. Furthermore, the company has set its sights on entering a new country, signaling its ambition to become a continental player in the premium burger market.
The separation also prompts a reevaluation of NoHo Partners' long-term financial targets. The company has revised its expectations for Finnish operations, now aiming for a turnover of approximately €350 million by 2027, down from the previous target of €400 million. This adjustment reflects the impact of Better Burger Society's departure from the group. However, NoHo Partners remains committed to maintaining a strong EBIT margin and pursuing profitable growth in its international business.
The revised targets indicate a shift in focus. NoHo Partners is recalibrating its strategy to ensure sustainable growth while navigating the complexities of the restaurant industry. The emphasis on reducing the net debt to operational EBITDA ratio to around 2 highlights a commitment to financial health and shareholder value.
As the dust settles on this separation, both NoHo Partners and Better Burger Society are poised for new beginnings. NoHo Partners will continue to leverage its extensive experience and market presence to drive growth in its remaining operations. Meanwhile, Better Burger Society will harness its brand strength and operational efficiencies to expand its footprint in the competitive burger market.
In conclusion, the separation of Better Burger Society from NoHo Partners is more than a corporate restructuring; it is a strategic pivot that reflects the evolving dynamics of the restaurant industry. Both companies are set to navigate their paths with renewed focus and ambition. As they embark on this journey, the culinary landscape in Europe will undoubtedly feel the ripple effects of their decisions. The future holds promise for both entities, as they strive to carve out their niches in a fast-paced and ever-changing market.
NoHo Partners, a titan in the Northern European restaurant market, has been a key player since its inception in 1996. With a portfolio that boasts around 300 restaurants across Finland, Denmark, Norway, and Switzerland, the company has built a reputation as a creative innovator. The recent separation from Better Burger Society, however, signals a shift in strategy, one that aims to streamline operations and focus on international growth.
Better Burger Society, known for its premium burger offerings, has carved out a niche in the burgeoning European burger market. The company operates popular chains like Friends&Brgrs in Finland and Holy Cow! in Switzerland. As of now, it has 31 Friends&Brgrs locations and 18 Holy Cow! restaurants, with plans to expand further. The separation allows Better Burger Society to pursue its growth ambitions independently, while NoHo Partners retains a significant stake, holding 50.7% of the company.
This strategic move comes with a financial twist. NoHo Partners will see its voting rights in Better Burger Society decrease to 49.6%. Despite this reduction, the company remains the largest shareholder, ensuring it retains influence over the burger chain's direction. The financial implications are noteworthy; the separation is expected to yield a positive non-recurring impact of approximately €20 million on NoHo Partners' results, boosting earnings per share by about €1.0 in 2025.
The separation is not merely a financial maneuver; it reflects a broader strategy. NoHo Partners aims to optimize its balance sheet and focus on active investment activities in its international business. The company’s CEO, Jarno Suominen, has emphasized the importance of this move in aligning with their long-term vision. The initial investment in Better Burger Society was around €7 million in 2020, and the current fair value of that investment has surged to approximately €45 million. This growth underscores the potential for value creation in the restaurant sector.
As Better Burger Society embarks on its independent journey, its growth strategy remains clear. The company plans to continue expanding through acquisitions, merging local premium burger brands with efficient operational models. The goal is to enhance procurement synergies and streamline operations, positioning itself as a leader in the premium burger segment across Europe.
In 2024, Better Burger Society reported a turnover of €80 million, and it aims to open five more Friends&Brgrs locations in Finland and six Holy Cow! restaurants in Switzerland this year. With these new openings, the total number of restaurants is expected to rise to around 60. Furthermore, the company has set its sights on entering a new country, signaling its ambition to become a continental player in the premium burger market.
The separation also prompts a reevaluation of NoHo Partners' long-term financial targets. The company has revised its expectations for Finnish operations, now aiming for a turnover of approximately €350 million by 2027, down from the previous target of €400 million. This adjustment reflects the impact of Better Burger Society's departure from the group. However, NoHo Partners remains committed to maintaining a strong EBIT margin and pursuing profitable growth in its international business.
The revised targets indicate a shift in focus. NoHo Partners is recalibrating its strategy to ensure sustainable growth while navigating the complexities of the restaurant industry. The emphasis on reducing the net debt to operational EBITDA ratio to around 2 highlights a commitment to financial health and shareholder value.
As the dust settles on this separation, both NoHo Partners and Better Burger Society are poised for new beginnings. NoHo Partners will continue to leverage its extensive experience and market presence to drive growth in its remaining operations. Meanwhile, Better Burger Society will harness its brand strength and operational efficiencies to expand its footprint in the competitive burger market.
In conclusion, the separation of Better Burger Society from NoHo Partners is more than a corporate restructuring; it is a strategic pivot that reflects the evolving dynamics of the restaurant industry. Both companies are set to navigate their paths with renewed focus and ambition. As they embark on this journey, the culinary landscape in Europe will undoubtedly feel the ripple effects of their decisions. The future holds promise for both entities, as they strive to carve out their niches in a fast-paced and ever-changing market.