www.crainsmanchesterbusiness.co.uk 8 March 2010 - reports on The Circle Club expansion plans!

 

By Simon Binns

 

More Circles ready to roll out across north - Team plans to open six new private members' clubs

 

"The management team behind Manchester's Circle Club is planning an expansion drive that could see it open six new sites in the next two years.

 

Blacksheep Leisure, which owns the members' club and adjoining restaurant, Kitchen, based in the Barton Arcade, is looking for sites in Leeds and Liverpool. The company, owned by Ringspun clothing label founder David Mallon, is close to signing a lease on a second location in Manchester city centre.

 

It is also looking for sites in Cheshire's “golden triangle” of Knutsford, Hale and Alderley Edge, a move which would enable it to take on upmarket bar operators such as Panacea and Living Ventures.

 

Blacksheep Leisure director Craig Ince said Glasgow-based property consultants Ryden LLP were heading the search for units of between 8,000 and 12,000 sq ft in prime sites.

 

“The second site in Manchester is not too far away, but we wouldn't put another one here after that.

 

Manchester's not a massive city and we'd be trading against ourselves.”

 

Ince said each club would cost around £1.4m to open and would be “tweaked” to its local market, but all would retain an element of private membership.

 

The club charges £1,000 for an annual membership to its Inner Circle VIP area, and claims to have sold all 250 available places. Since acquiring the club in 2007, turnover has increased to £2m from about £500,000. It is still the only venue in the city centre with a 24 hour licence.
 
Inclusive
“In three years, we've worked hard to create a brand we think we can roll out,” Ince said. “We opened up the membership and made the club more inclusive.

 

“We really drove sales and we've invested around £1.4m into the place, reworking the existing space and opening the restaurant on the ground floor last April.

 

“You can't just turn up and expect a private members' club to work in Manchester the way it does in London. Manchester is a totally different animal.”

 

Staff from Barton Arcade will help run the new sites, but Ince said the company was on the lookout for operations staff. “We'll have three levels of access — public, membership and VIP. There'll be dining and we'd like to have a bit of outdoor space too. We'll be looking for new members in each new area but we'll also offer cross promotions for existing members.”

 

Manchester property firm Vision Developments, owned by Morgan Leahy, will be partners in the expansion, buying the new buildings and moving Circle Club in as ready-made tenants.

 

Neil Jones, managing director of listings and reviews site Manchesterbars.com, said a roll-out could work for the brand but it would have to consider the foibles of local markets.

 

“They've made the concept of a private members' club work in Manchester, probably by making it feel more inclusive, so hats off to them,” he said.

 

“It could work in Leeds and Liverpool but they are very different markets with a different crowd. It can be hard to move a business that just concentrates on Manchester into another area but it's down to management. If you know your potential customers and don't just aim that sort of club at the footballer crowd, you've got a good chance.”