Cuban Reels

Ranald MacDonald and his brother Andrew are planning to unleash Cuba’s legendary El Floridita bar across Europe.  Chris Orr asks how two Scotsmen won the deal

IT’S 10 O’CLOCK in the morning and Ranald MacDonald, head of clan MacDonald, is lighting up his first cigar of the day. "Would you like an orange juice?" he enquires. "We have Dominican Republic, Nicaraguan, Fijian, Italian, Brazilian or Cuban.

I always go for the Cuban." It arrives and tastes delicious. "In fact," says MacDonald, "we only do Cuban. But most people ask for it. I’ve only ever had one person say that’s lovely can I have a glass of the Nicaraguan now. Most embarassing."

Through the haze of blue smoke it’s not difficult to see that Ranald is just a bit of a wag.  He jokes around, is wonderfully entertaining and has that cheekiness that, despite his years, makes him appear more like an adolescent schoolboy waiting for his latest prank to come off, rather than an accomplished restaurateur with two successful restaurants to his name.

He also doesn’t look like he’s sitting on a gold-mine.  But potentially, he is. 

Along with his brother Andrew MacDonald, Ranald – or rather their company, Havana Restaurants Europe – has just acquired the franchise rights for El Floridita bar. For those unaware of this establishment, the easiest description to give of this famous bar is that, put simply, anyone with an ounce of taste who visits Cuba, visits El Floridita.

It’s the bar that gave the world the Daiquiri, an institution in its own right. Capitalism may be long gone, and Castro entering his twilight years, but El Floridita is a strong reminder of how it once used to be in Cuba – stylish, flamboyant and very, very chi-chi. It was one of Hemingway’s favourite bars and often a source of alcohol-fuelled inspiration for the famous wordsmith.

The question is, how did two well-heeled Scottish lads end up with the right to establish the Floridita brand outside Cuba? "Well, it’s quite a long story," explains Ranald. "There’s a Hunter and Frankau rep, or was, called Derek Wignall – a rather smart chap, very dapper, with very smart suits and wonderful cufflinks – and he was one of the few sales reps I used to like seeing when I opened Boisdale.

Anyway, he said to me one afternoon, ‘Do you know you’ve probably got one of the second best collections of Cuban cigars in London?’ Up to that point it hadn’t really occurred to me that we had anything in particular going for us on the cigar front.  I just thought we had a rather nice selection.

"So I asked Derek who had the best selection. He said Le Gavroche had 18 different cigars, so I immediately doubled the number we had and sent a press release out saying we were London’s first proper cigar bar. That was 1996, which was the beginning of the huge cigar boom in the UK. On the back of that I went to Cuba with Hunter’s and Frankau.

Andrew met me there, because he was living in Chile at the time, and we had our first drink together in Cuba in El Floridita.  The germ of an idea to do something about it commerically, came about when I was talking with Max d’Ou who was the head of the Cuban tourist board (and still is).

He said to me one day, ‘You know my dream is to bring El Floridita to London,’ and I said my dream was to bring Boisdale to Havana. So we shook hands on it."

He was right, it is a long story. But it serves to illustrate that the deal was not just another drunken rambling over one too many good cocktails in an enchanting foreign bar. It’s taken four years for the two brothers to seal the deal. "We spent three years alone on the negotiations," explains Ranald. "

It was quite difficult sorting out a complex and unprecedented franchise, in as much as there isn’t really an exisiting example of an upmarket, atmospheric legendary bar being franchised with any great success."

"Actually I think franchise is the wrong word really," explains Andrew. "It’s really a partnership in conjunction with the Cuban government and Gran Caribe [El Floridita’s owners cuban parent company]. There’s a licensing situation for the intellectual property of the brand and we are getting a lot of contribution from the Cubans in terms of time and support from the Ministry of Tourism, who will be helping us source authentic supplies from the musicians and staff through to the lobsters and the rum.

It’s very important forthem that this is not purely a financial transaction but rather an attempt to build on the image of Cuba in Europe.  That’s why they’re doing it. It has to work for them because, in essence, it’s almost an embassy for them."

"Sounds corny doesn’t it?" says Ranald. "But it’s true. Look at the drinks business these days and virtually everyone is an ambassador for something or someone, so it’s not that out of kilter. We think El Floridita will be the first thing in Europe that really reflects the grandeur of Havana. Virtually everything Cuban in Europe, whether it’s in Paris, Hamburg or just down the road, is downmarket."

So how much is it costing them to transport some of Havana’s grandeur to the market? "Well we’ve paid an up-front fee for the licensing agreement. A premium was paid for the franchise, although, to be honest, the effort, time and trips to seal the deal will probably be the larger of the expense.  To date we suppose it’s cost us £250,000 but we think that’s pretty good value."

It is indeed, but it’s worth little unless the brothers can get the concept up and running. "In terms of finance," explains Ranald, "we are looking for a strategic partner or partners and already have good dialogue with a number of diverse individuals and institutions.

We’re well on the way to being fully capitalised; we have Habanos [the Cuban cigar regulator and distributor] on board, and one other corporate sponsor so far. But we’re looking for partners who can preferably bring tangible sales or marketing benefits to the table as well as a financial contribution."

"We’re forecasting several revenue drivers," explains Andrew, "and I think that’s important. Obviously the bar restaurant is one, as are the cigars – and we have a whole merchandising plan which will comprise music, as well as general Habanos and El Floridita memorabilia. Plus there will be membership of the El Floridita club, door-charge, and events too.  So there’s a string of revenue generators.

We’re forecasting close to £6m in gross sales by 2005."  They’ll also be opening the first Casa del Habanos in the UK – an exclusive cigar shop of which there are only a handful around the world – which has the backing of Habanos.

So, restaurant, bar, cigar shop, cuban bands – there’s only one problem, and that’s getting hold of the right venue. London will be the flagship bar, but Leeds, Glasgow and Edinburgh are all in the company’s sights. From the pan-European aspect, Rome, Florence and Milan are being sized up for Italy, Paris and perhaps Nice for France, Hamburg and Berlin for Germany, and Madrid for Spain.

The holding company is Havana Restaurants, which will own Havana Restaurants UK. Any openings outside the UK, however, will be joint ventures. "We’ve already got interest from several companies in Italy," explains Andrew.

Music will be the biggest atmosphere builder.  It’s the very essence of what Cuba is all about

"What we’re looking for with the London site," says Ranald, "is around 5,000-6,000 sq-ft, ideally in Mayfair or the West End.  We’re hoping for a capacity of 150 covers in the restaurant, with 100 covers at the bar.  Our price point on cocktails will be around £7-£8.50. The image of El Floridita is pretty expensive so we plan to be in the upper bracket.

The decor will be classic 1950s and as close to the feel of El Floridita as possible, and where we can we’ll use Cuban materials and Cuban craftsmen, then ship the interiors over. 

"Dinner will be around £40-£50 a head, with a decent bottle of wine. The menu will be Cuban inspired, and we’ll be crating in premium Cuban fish, which you can get in Paris and Madrid, but not necessarily London.  This will include Cuban lobster, which has much more intense, distinctive flavour than its European counterparts.  The Cuban food scene is quite diverse and the seafood wonderful." 

One major point of difference, hope the MacDonalds, will be the music. "For me," says Andrew, "that will be the biggest atmosphere builder. It’s the very essence of what South America, and in particular Cuba is about.  It’s instantly relaxing.

We’ll be shipping in the very best of Cuban bands, and they will be playing through the day until the early hours of the morning. The music is a key part of the business model we’ve put together and of creating an ambience that works." 

At the end of the day, claim the brothers, they want to recreate the old world charm of El Floridita: "One that’s all embracing.  I think that’s why the Boisdale experience will translate pretty well," explains Ranald. "There’s to be no naff dress or door code. We want a good cross-section of people, which creates a good atmosphere.

All that people have to have in common is one thing – that they love the feel of the place and they want to drink there and enjoy themselves.  It’s not much to ask really is it?"

Bar Talk

Favourite Restaurateur:

Andrew:  "Has to be the Cipriani family at Harry’s Bar. They’ve done much the same as we would like to do with El Floridita.  Roll out a concept across several venues but maintain quality and kudos."

Ranald:  "Mark Birley – greatest there is really."  Ever been thrown out of somewhere:

Ranald:  "Well, I was thrown out of a place so politely – twice – that I went and hired the guy that did it. Our doorman Dennis. Lovely chap."

Andrew:  "We were once thrown out of a bar in New York because a friend spilt the bouncer’s drink, but I’m not sure that counts."

PREVIOUS FORM: BOISDALE

Date launched: Belgravia Restaurant – 1989; Bishopsgate

Restaurant – 2002

Turnover: just over £4m gross sales

Spend: £15-£100

Cost: set menu, lunch, £14-17.95 per head, à la carte, av. £35 per head

Boisdale Club Membership: £195 per annum

Background: 

"Boisdale Belgravia started off relatively small," says Ranald, "then added the back bar, and in 1999 we took over the next door premises and expanded to have live jazz and added our zinc bar.

Our turmover at the Eccleston Street premises was £180,000 in 1989, but by 2002 was £2.7m gross.  And our Bishopsgate restaurant has exceeded it’s first year projections by 40% so far.

"It’s been quite a difficult time for the Victoria restaurant.  Within a few minutes walk are many major firms like Salamon Brothers, Enron, McMillan etc, all of whom have made swingeing staff cuts.

So we’ve had to work really hard to maintain customers and, certainly from the lunch point of view, we’ve had to recreate ourselves as something of a destination restaurant and ensure people come to us.

"I think an important part of what we offer is that we don’t put a price tag on a customer. You can come and spend anywhere from £15 for a decent sandwich and glass of wine, to £100 or more.

Our wine list starts at £12.50 for the house wine, and goes up to £10,000 for a nebuchadnezzar of Dow’s Vintage Port 1896.  As a result, we get a whole cross-section of customers."