Lakeside leap of faith

Posted On Friday, 29 October 2004 02:00 Published by
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Pan-African restaurant chain Moyo surprises with a 20-year lease at Johannesburg's Zoo Lake
By Pauline Larsen

Moyo, the chain of themed Pan-African eateries, has taken over the restaurant complex at Johannesburg's Zoo Lake.

For the city council, which owns the site, the deal is a coup. Moyo has agreed to a 20-year lease from November 1, which is almost unheard-of in the property market. Restaurant leases are seldom longer than three years.

Though some property managers say a 20-year commitment puts a tenant at an unacceptable risk, especially in the fickle restaurant trade, Moyo founder Jason Lurie is unapologetic.

"It's Moyo policy now to take a minimum 20-year lease for our premises," he says. "It's not about bravado; it's because we believe in our concept and intend to make it work."

The land and buildings are owned by the city council and managed by City of Joburg Property Co (JPC). Spokesman Karen Mare says the lease for the premises was ceded to Moyo under the same terms as the previous lessee, who "unfortunately managed it poorly". (The restaurant was called Leaves.) The remainder of the lease is about seven years with an option to renew for another nine years and 11 months, she says.

Jenny Moodley of City Parks says that most Johannesburg parks do not have a restaurant or tearoom. "Such facilities need to meet a range of consumer needs, from airtime to charcoal."

Though sales of refreshments will start immediately, Lurie says the full re-development will be complete only by mid-2005. "In the meantime, it'll be a Moyo-in-the-making," he grins.

In recognition of the refurbishment period, the JPC has agreed to a "beneficial rental period" of five months. No-one's saying what the rental is.

Plans for the site include a patisserie, decks that lead up to the water's edge and what Lurie calls a learning annexe. A multipurpose venue, the annexe will be used for wine tastings, cookery lessons, music master classes and poetry readings. Mare says the final design plans have not yet been signed off.

Moyo had humble beginnings in Norwood, Johannesburg, but has expanded in leaps and bounds. It's not without critics, who argue that it has grown too fast and in too many directions.

Besides, Moyo's fare falls into the fun rather than the refined category, yet it's not cheap, and it can pall quickly.

Over the past six years, Lurie has opened four Moyos as far apart as Spier Estate in Stellenbosch and in Newtown, Johannesburg. In total, there are about 2,000 seats at Moyo around the country and about 750,000 people have eaten at the restaurants this year.

Lurie says his team debates each expansion idea thoroughly before going ahead. They are keenly conscious, he says, of the need for support infrastructure. Unusually for a restaurant, Moyo helped develop its own front- and back-of-house systems, plus a strong accounting structure, to support its expansion. Moyo deliberately overstaffs to ensure skills training.

"Our five-year plan is aggressive but not unrealistic," says Lurie. "We have taken into consideration our growth path over the past five years. We're brave when it comes to scale, but cautious when it comes to quantity."

Lurie is adamant that he will never allow the Moyo brand to be franchised.

The first Moyo opened its doors in 1998 with 120 seats in trendy Grant Avenue, Norwood. "High streets suit the Moyo vibe," says Lurie. "So we'll never open in a mall."

A few years later, Moyo moved to Melrose Arch and grew to 400 seats. In 2003, Lurie took Moyo to the Market Theatre precinct in Newtown. This one is slightly smaller at 250 seats.

Finlay marketing director Nicole McLachlan, who is marketing the Newtown precinct, says Moyo has been successful in the node and its concept has been well received. "It has been a main night-time and weekend destination, helping to foster awareness of and support for Newtown."

In December last year, a 10,000 m² Moyo with 1,000 seats was opened at Spier Estate. Retail analyst Sheny Medani says the tie-up with Spier was a stroke of genius. "Spier is trying to capture the old and new elements of Africa - Cape Dutch meets sophisticated African themes," she says.

Southern Africa is in Lurie's sights for future openings.

He believes the restaurant and entertainment sector needs to draw on local heritage and the diversity of SA life. "There's not enough imagination out there. When we keep on repeating the same old Tuscan developments, it distresses me."

Financial Mail


Publisher: Financial Mail
Source: Financial Mail

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