Why one of the culinary wonders of the world needs better restaurants
“You’d have a hard time finding anywhere better than Barcelona” Anthony Bourdain
Bursting onto the world stage and into global consciousness as hosts of the 1992 Olympic Games, Barcelona has developed from its industrial roots to one of the world’s leading tourist destinations. Formerly known as the “Manchester of Spain”, the city is now touted as the “Miami of the Mediterranean”, catering to a vibrant international community of residents and visitors alike.
In 2017 there were 8.9 million overnight visitors to Barcelona, making it the 11th most visited city in world, and the 3rd most visited in Europe ahead of, amongst others, Rome, Milan, Amsterdam and Berlin. Spain is the second most visited country in the world, with 82 million international visitors in 2017, Catalonia is its most visited region and Barcelona is its most visited city. Barcelona is consistently recognised by the European Cities Monitor as having one of the highest qualities of living in Europe.
Barcelona is rated as one of the world’s leading culinary destinations with 24 Michelin Star restaurants in the city’s metropolitan area. Year after year the city attracts millions of people seeking the best dining experience of their lives.
Fine dining should be about more than just a meal. Despite being one of the world’s highest gastronomically rated destinations by food critics, Barcelona does not cater sufficiently those consumers who wish to enjoy both great food and a lively environment in the same venue.
Barcelona is one of the world’s leading cultural and sporting destinations being home to FC Barcelona, RCD Espanyol, Catalunya F1 and Catalunya Moto GP. The city is a cradle of modern European culture, from Gaudi’s Sagrada Familia to the gastronomic phenomenon that is Adrian Adrià’s empire.
The city is one of Europe’s premier nightlife destinations with the “season” now almost year-round. Barcelona offers an eclectic mix of options to the discerning nightlife connoisseur, from R&B nights in Vila Olympic to house music on Las Ramblas to traditional music in L’Eixample. The city of Barcelona and the surrounding areas host some of Europe’s largest festivals celebrating music, art and food, including Sonar, the Barcelona International Art Fair and Eat Street. Thanks to the relatively small size of the city, one is never more than a 20 minute journey by taxi away from a thriving nightlife hub.
With over 2.7 million passengers per year, the Port of Barcelona is Europe’s busiest passenger port by passenger volume, with Barcelona as either the start of their journey or final destination.
Barcelona is one of the world’s leading conference and meeting destinations, with in excess of 650,000 delegates attending more than 200 conferences in 2017. In 2018 The Mobile World Conference alone attracted over 107,000 delegates.
Market opportunity
“The restaurants express the spirit of the chef, the spirit of the city, the country” Alain Ducasse
Despite being one of the world’s leading culinary and nightlife destinations, Barcelona is conspicuous by the absence of lifestyle and luxury branded restaurants and hotels. 32% of all spending on luxury goods and services in Spain is done in Barcelona. Expenditure on food represents a significant proportion of this sum, increasing by 6% last year, demonstrating a desire by consumers to pay for luxury dining experiences.
Restaurant licensing in Barcelona allows for most restaurants to stay open, serving alcohol until 3.00am and, in some cases, 6.00am.
Historically, a night in Barcelona could be split into three distinct parts: dinner, typically beginning at around 10.00pm and finishing at around midnight; after dinner, one would move onto what were known as “primera hora” (first hour) nightclubs, generally smaller venues which closed at around 3.00am-3.30am. Once these clubs closed, one would then go to the larger “segunda hora” (second hour) nightclubs which would close at 6.00am.
Due to licence changes in 2015, all nightclubs are now licensed to stay open until 6.00am. The knock-on effect of this change is that the premier nightclubs do not get busy until at least 3.00am, resulting in a three-hour gap between the restaurants closing and the clubs getting underway.
The target is cosmopolitan professionals between the ages of 25-50 with high levels of disposable income, who expect and enjoy a superior level of service, and who seek unique atmospheres and unparalleled experiences in their valuable spare time.
During peak season, May to September, at premium venues, VIP table spends range between €5000-€20000 per table. Combined with spending on meals in luxury restaurants ranging between €70-€200 per head there are significant potential returns.
Justification
Barcelona is an excellent target market for luxury restaurants as there is a clear lack of internationally recognised lifestyle brands.
It is widely acknowledged that when eating out in Barcelona, one has to choose between the food and atmosphere as there are currently very few places where one can enjoy both.
With ever increasing numbers of sophisticated, cosmopolitan consumers either visiting or relocating to Barcelona each year there is a growing and tangible desire for the city to truly take its place as a global player and host the level of hospitality brands seen in comparable locations across the world.
The tide has already begun to turn; Soho House opened their first Barcelona venue in 2016, Nobu will be opening their first hotel and restaurant in the city in 2019. Soho House has been very well received and has attracted a whole new demographic to Barcelona. Soho House’s Cecconi branch in Barcelona features in the top 5% of Barcelona’s restaurants rated on Trip Advisor. Their belief in the city was once again showcased by opening branches of their Chicken Shop and Dirty Burger brands. Major hotel groups have recognised this shift and are investing heavily in projects around the city, improving the level of hospitality to previously unscaled heights.
Our team combines decades of experience in luxury brand consultancy, hospitality, nightlife and real estate, both in Barcelona and internationally. Remora Capital Investments (RCI) and our partners are seeking to collaborate with leading global luxury and lifestyle restaurant brands to revolutionise nightlife in Barcelona.
Sebastian Bacon is a Director at Remora Capital Investments, Europe’s leading off market property broker. Remora focuses on off market opportunities in the commercial property sector, servicing a global client network including private and institutional investors, UNHW, family offices and sovereign wealth.
Website: www.remoracapitalinvestments.com
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