Big interview
platform with live availability. Generally
as an industry we are quite low tech.”
Stewart, an advocate for the nurturing
of young talent in the industry, says we
are in a war for talent. “We want to play
up our entrepreneurial CV at etc. It may
start with me [and the EY award], but it
is something that should flow through
the company.”
Holding on to talent is another knack
of the Stewart reign. The distinctive etc.
design DNA is something the company
values high and is keen to export, with
long-time Head of Design Frank Rosello.
Stewart sums up the state of the etc..
nation: “We are going to step it up now.
The US looks at scale differently. Access
to capital is a different ball game. With a
much bigger market, you can become a
much bigger player. We have the
ambition to go in as a British brand.
We’ve looked at people like Soho House,
Pret, etc who have been successful and
held on to their British model.”
To ensure that the etc. DNA flows
across the Atlantic, management has a
visa programme to enable it to take up to
10 UK staff initially. The launch team
will recruit US colleagues, including a
CEO.
“The design pen is being held in the
UK,” Stewart underlines. “Consistency is
a point for retaining quality. I’d like the
same reaction to Frank’s designs as Soho
House got for theirs.”
“Initially, the $100m of growth capital
will fund another nine venues Stateside,”
he says. “We’d like to prove a model out
of New York, too,” Stewart adds,
acknowledging that it would be an
important move for raising capital, “most
probably on the East coast”. He is also
looking ahead at the possibility of
licensing the brand in North America.
I have sat down to interview Stewart
every five years for the past 15 years,
although I’m wondering whether he will
be in the chair opposite in 2024, as he
signals the next part of his personal
journey is to help Nick Hoare take over
the running of the business.
“I’m not looking for a way out,” he
“ The US
looks at scale
differently.
Access to
capital is a
different ball
game. With a
much bigger
market you can
become a much
bigger player”
Above: Team UK
bound for US - Nick
Hoare (left) and
Alastair Stewart
assures. “All businesses need
transforming. For etc.venues to go to
next level it needs a bigger management
team. Nick joined (June 2018) with PE
experience.” That, we suspect, may save
Stewart a fee or two on investment
banking advice going forward. “I wanted
to get involved in running a business,”
Hoare says, explaining why he left
Dunedin. “There was a certain
serendipity and I linked up here with a
management team I trust and a model
that works. It can be transported to the
US and be massively exciting.”
Stewart is coy only once, when asked
about the challenges of the US labour
laws in the business, where many large
venues are heavily unionised.
“Interesting practices,” is how he puts it.
He does look forward, however, to
realising higher day rates, albeit at a
sacrifice of a higher cost base and lower
margins, at least initially. “If the delegate
rate in the UK is £100 for example, you
can double it in New York,” he says.
He obviously relishes offering
something different. “There is pent up
frustration among US planners. I think
ISSUE 102
we can do well on the back of that. US
venues are extremely expensive. We can
offer significantly better value.”
Stewart is aware of the pitfalls, and
notes there isn’t the same strong agency
network in New York as there is in
London.
But, he is putting his faith in the
importance of service and clearly looking
forward to getting stuck in. “There are
hundreds of people at etc. who do an
amazing job of looking after people and
getting the basics right. Service in New
York can be patchy,” says Stewart.
While, etc. eyes may be on the West,
Hoare promises not to lose sight of the
UK and reminds that the brand recently
opened 133 Houndsditch, its largest
space in the portfolio. The vision
remains: to double the business in 3-5
years.
A final Stewart tip for entrepreneurs?
“Work for someone else for a while!” is
the answer, as well as a warning against
false prophets: “We do live in a world of
fake entrepreneurs. Sometimes there is
not enough substance. Focus on
integrity.”
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