Pizza Pilgrims – Bitter Sweet Margherita
Pizza Pilgrims –
Bitter Sweet Margherita
As has been widely covered in the media, Pizza Pilgrims has recently embarked on a new and exciting voyage with L'Osteria meaning it was time for Imbiba to exit stage left.
As was ever thus as an investor, the fabled ‘exit’ leads to an emotional reaction and a period of reflection, contemplation and learning. Like everything in life, depending on the outcome and people involved emotions and learnings can fluctuate wildly!
To fully understand such emotions, it’s important to start at the beginning of our journey with the Pilgrimers.
It was Lockdown 2020! We walked in parks and met with industry pals wishing we owned shares in e-commerce businesses (selling literally anything!). We discussed the pointlessness of never-ending cash flow planning, particularly when we didn’t know when we’d get any actual cash, and pontificated on whether meal kits were part of our lives forever.
As relative neighbours, Thom (Pizza Pilgrims founder) and I did our dues. To be fair, we didn’t walk. We bought Peroni and sat on a bench. Much safer that way! As the conversation ebbed and flowed, Thom casually mentioned that when this was all over he wanted to really get on the march with the business. He felt the business and the team were ready. I politely enquired if he needed some fire power, Thom said it would be helpful and we were away. Terms loosely agreed on the bench and then I was dispatched to Chelsea for an arm wrestle with the infamous Rupert Clevely, the Company’s Chairman, to agree the final terms and convince him, and the rest of the Board, that we wouldn’t be a private equity nuisance!
Some snappy due diligence was done (it’s not like we had anything else to do!) and into the legals. The legal negotiations culminated with the enigmatic Clevely bounding into our office one afternoon and declaring “I’ve just had a cracking lunch, let’s get this sorted”. Bliss. This is how deals must have been done in the eighties! Lucky Boomers! Not an over-priced CDD provider in sight! What I didn’t know at the time was that Rupert’s commercial pragmatism, which really resonated with how we like to do business at Imbiba, pervaded through his masterful management of the Board which was a big part of Pilgrims success.
From term sheet signed to deal completion, it was 4 weeks. We were off and now part of the Pilgrims family.
As we came out of lockdown a flurry of new sites were signed by Kieran Sherlock, Pizza Pilgrims (and Imbiba’s) seasoned Property Chief. All opened on time, on budget and exceeded expectations. New people joined the team; all slotted in with aplomb. Dreamy. As a new board member, I quickly learned what the company needed from me…..to keep quiet, get out of the way and let the talent get on with it! Four years hence we depart having made a great return and worked with some of the best people I’ve ever met or worked with in the industry.
So, what did I learn?
As an investor, I learnt nothing. At least nothing that will help me become a more informed or wiser investor. Any two-bit investment book will tell you to invest in great teams, with a clear vision or best in class brands with longevity underpinned by exceptional product. We knew this 4 years ago and it still holds true today. If only it was that easy! Moreover, as investors we know - sadly - that we only really learn in adversity or when things goes south!
However, over the last four years I have learnt one of the most powerful business lessons of my career. The power of a united and collegiate senior management team underpinned by true loyalty and respect. Business book rhetoric tells up investing behind a great CEO reduces risk and enhances returns. This is of course mostly correct and I have been fortunate enough to work with, and learn from, some brilliant CEOs who have proved the thesis. However, Pilgrims is different! In fact, leading business commentators may even eschew the Pilgrims Way.
So what is the Pilgrims Way? The business is effectively run by four special leaders each of whom brings something different to the pie: not just professionally but emotionally; each has a different energy which provides balance and harmony to the business and to the decisions that need to be made. And all underpinned by unwavering loyalty. No one is getting thrown under the bus in this crew.
Thom Elliot (co-founder) is one of the very few people I have met that has extremely high levels of both EQ and IQ. He’s super smart but he really gets people. Thom is also a real worrier. Not great for Thom(!) but all the best businesses need a worrier to rein in the optimists! Gavin (CEO), the engine room! This guy bleeds hospitality and has a deep understanding from the shop floor of what is needed to achieve excellence. If you show up at Gav’s house on Sunday for coffee, it’ll likely come with a flake, marshmallows and chocolate sprinkles.
Then to Sophie (CFO). She’s been with the business since site two and brings calmness, composure and diligence to, what at times, could be chaos or crowd control. She’s unflappable, good humoured and has a deep rooted and innate understanding of the business that goes way beyond the CFO lane. And finally, James Elliot (co-founder). The Spirit of the brand. One of the most charismatic and charming people I’ve had the pleasure of working with. When James talks, make sure you keep quiet and listen! He’s a magician!
All four Pilgrimers are special in their own right but as a collective they’re a ferociously powerful unit and one I have learnt so much from.
All that is left for me to do is to thank everyone at Pilgrims for letting me and Imbiba be part of this special special business for the last 4 years. I can’t wait to watch the success the business will go on to achieve in its next chapter.
Finally, a note to their new partner. It’s widely known when one President leaves the White House they leave a note with some sage counsel for their successor. A lesser known fact (because it might not be true!) is all departing White House staff do the same. So, to my successor in the boot room: “meddle at your peril. In pizza love you must trust.”
Darrel
