It started with a ‘cold call’ email – but now Brits with no previous restaurant experience are set to cash in on a £400million fried chicken windfall.
Tom Grogan, Herman Sahota and Saul Lewin are the UK entrepreneurs who have just secured a deal selling their Wingstop business to a Californian private equity firm.
They met while all working in the real estate and property development and yet decided to chance their arm moving into fast food six years ago – sending an email to the US firm which was founded in Texas in 1993 by Antonio Swad.
Mr Grogan, 34, has told how it took more than six months to make a case for setting up a British arm of the firm, alongside Mr Sahota, also 34, and 47-year-old Mr Lewin.
And they ultimately succeeded despite only restaurateur Mr Lewin having previous experience in the trade, going on to now have 57 sites across the UK and employing 2,500 staff.
The trio will now get to cash in on the British franchise’s sale to private equity investors Sixth Street, while retaining minority stakes.
The deal marks one of the largest takeovers of a restaurant brand in this country – and comes after cannily targeting Gen Z and millennial consumers, following in the example of the US branches whose celebrity fans include Kylie Jenner.
Mr Grogan has described having his interest in the US company first piqued when hearing it recommended by rapper Rick Ross, who has invested in his own Wingstop franchise branches.
The three men behind fried chicken chain Wingstop’s UK arm are now set to cash in after its sale – pictured, left to right, are Saul Lewin, Tom Grogan and Herman Sahota
Among the fans of the firm is Croydon-raised, Brit Award-winning rapper Stormzy
The first of the company’s British restaurants opened in 2019 in Cambridge Circus in central London, near the West End and Soho
British performers such as Stormzy and AJ Tracey have also become fans of the chain and its fried chicken offerings – while reality TV star Kylie Jenner has been seen tucking in at Wingstop in America.
And recent figures released by online service Deliveroo revealed that Wingstop has become one of the UK’s most popular fast food providers – with its option of eight boneless wings the nation’s bestselling dish and ranked second worldwide.
Wingstop is now said to be the fastest-growing restaurant brand in the UK, on top of 1,926 locations in the US as well as outlets in Canada, France, Indonesia and Mexico.
Sixth Street are now taking a majority stake in Wingstop’s parent firm Lemon Pepper Holdings, which operates the brand in the UK and Ireland.
The private equity company says it want to have 200 UK sites by 2029.
Yet the threesome who are now benefitting were starting the British operations from scratch when first making that pitch across the Atlantic five years ago.
They saw potential, however, with Mr Grogan noting that Britain’s fast food industry at the time felt ‘pretty stagnant with regards to innovation and marketing strategy’.
His colleague Mr Sahota, also a former property developer, was quoted by Management Today as saying: ‘We felt that no other restaurant brand had really brought together retail and restaurant and really honed in on that Gen Z/millennial audience.’
Reality TV star Kylie Jenner (right) is among fans seen tucking into Wingstop’s fried chicken
Tom Grogan (pictured), one of the three founders launching the company’s UK arm, has told of how ‘proud’ they are as he announced a sale to private equity firm Sixth Street
And Mr Grogan recalled of that on spec email to Wingstop in the US: ‘We were scalpel sharp in that vision from day one.’
He characterised their approach when suggesting a UK launch as: ‘Essentially, we love the product, we like the logo, we want to change everything else.’
He added: ‘Under no exaggeration, we met up to 50 investors when we were pitching the concept of bringing Wingstop to the UK – 49 investors said no.
‘If we’d have stopped at that point, Wingstop UK wouldn’t be with us today.’
The UK founders have identified a target audience as consumers aged between 16 and 34, interested in sport, TikTok and pop and rap music – with many of their employees falling within a similar bracket.
The firm has pursued commercial tie-ups with sportswear brands such as JD Sports and Footasylum, while also hosting live music acts at its branches.
Mr Grogan said: ‘A lot of the content doesn’t necessarily resonate with us, but it most certainly does with our consumer, and we’ve got a good sense-check of trends in the market through our internal team.’
He has also credited the trio’s real estate background and expertise as helpful, in identifying the most promising locations when expanding the company.
The British wing of the company now has 57 outlets and employs about 2,500 staff
Wingstop is now said to be the fastest-growing restaurant brand in the UK, to go with 1,926 locations in the US as well as branches in Canada, France, Indonesia and Mexico
He said: ‘Fundamentally, you need market knowledge for that, you need the boots on the ground.
‘If your first five sites are the wrong sites, that sets you back one or two years.’
He has now shared memories of the UK launch as well as confirmation of its sale in a public message posted on LinkedIn and shared by colleague Mr Lewin, whose profile shows he was educated at London South Bank University and the University of South Carolina.
Mr Grogan wrote: ‘In September 2016, Saul Lewin, Herman Sahota and I sent a cold email to Wingstop Restaurants Inc in Dallas, Texas, asking if they’d consider bringing their concept to the UK.
‘We had no sector experience, limited capital, and only one thing driving us: a strong vision.
‘The idea? To blend QSR [quick service restaurant] with youth culture. To make Wingstop UK more than just a restaurant, but a brand people connect with.
‘Naivety was our gift. With no playbook to follow, we approached this journey without preconceptions and with the freedom to think differently.
‘Fast forward eight years, and Wingstop UK has grown beyond anything we could have imagined.’
Wingstop’s UK leaders identified a target audience as consumers aged between 16 and 34, interested in sport, TikTok and pop and rap music
Recent figures released by online service Deliveroo revealed that Wingstop has become one of the UK’s most popular fast food providers – with its eight boneless wings the most-ordered
He said they were ‘proud to announce the sale of the business’ to Sixth Street in what he called ‘a landmark moment for the UK QSR sector’.
Mr Grogan added: ‘This milestone is bittersweet. While we’re stepping back from the business, we remain invested in Wingstop UK’s future and will continue to support its growth from the sidelines.
‘This journey – fuelled by an incredible team, bold thinking, and a relentless focus on flavour – has been the adventure of a lifetime.
‘We are humbled, proud, and grateful to everyone who has been part of this story.’
Responses posted online included one person saying: ‘What a remarkable journey, true passion creates strong foundations to begin a legacy, and you guys have done just that.’
Another commented: ‘From humble beginnings at Cambridge Circus to the colossal opening at Westfield, Stratford City, Wingstop is well and truly established as a house hold name here in the UK and that is testament to your passion and drive for success.’
But one less-satisfied customer wrote: ‘Could you please tell Wingstop Restaurants Inc to get their company in order at the Dallas intl airport.
‘I got charged extra for a side dip when every other Wingstop ever has included it when you buy 10pc wings.
‘Also, a little too expensive in pricing in comparison with other locations (this includes SoHo in London, UK).’
Mr Grogan replied: ‘Certainly. I’ll tell them right away.’
Mr Grogan previously worked for property developer Greenvilla Homes and later as an investment manager for private equity firm Hamilton Bradshaw.
