Big office landlords hungry for restaurants: steakhouse king

“These landlords are looking to invest in good operators who will be there for a long time. They are happy to give nice [fitout] contributions and negotiate good deals on rentals in return for longer leases.”

This, he said, marked a stark change from some of the “horrible landlords” Seagrass had dealt with during COVID-19, who would not budge on rent relief “and who gave us a hard time”.

“We’re picking and choosing which landlords we will go into new ventures with,” Mr Michael said.

‘There’s lots of money in Perth’

Last month, Seagrass opened a 6Head fine dining restaurant at Brookfield’s One The Esplanade office development – the new headquarters of Chevron – at Perth’s Elizabeth Quay waterfront precinct.

“The reason we went there was because we got a great deal from Brookfield for an iconic site on the water. There’s lots of money in Perth and all our other Perth restaurants are trading out of their socks,” Mr Michael said.

Brookfield Properties president Danny Poljak said working with groups such as Seagrass Hospitality enabled the real estate giant to “curate places for where people want to be”.

“There is much to be gained from our mutual success. Having great food and beverage venues within our assets not only creates vibrancy in our CBDs, but it also, importantly, creates great experiences for our office tenants and helps us maintain high standards of quality in our real estate portfolio,” Mr Poljak said.

“6Head is a terrific addition to our One The Esplanade development. Elizabeth Quay is quickly becoming a destination, and we are excited to be at the forefront of its development.”

Mr Michael revealed he had also just signed a deal with Dexus to open another Meat & Wine Co steakhouse within 1 Bligh Street, the skyscraper overlooking Circular Quay.

“Dexus approached us to take over a big space at the bottom of the tower where government offices used to be. It will open by the end of April or early May and will have a life-size statue of a rhino in it and the look and feel of an African safari lodge,” said Mr Michael, who began his hospitality career in South Africa.

Alongside these new restaurants, Seagrass plans to roll out three more Five Guys burger joints next year, including in Chadstone Shopping Centre, which Vicinity Centres co-owns with Rich Lister John Gandel. (Seagrass’ latest financial accounts show it sold 50 per cent of its Five Guys Australian and New Zealand franchise rights for $1.3 million at the end of June.)

“Five Guys battled at first because everyone thought it was a type of McDonald’s, whereas everything is freshly made on the day. But in the last seven months, it’s been flying,” Mr Michael said.

Seagrass closed the last of its British restaurants in June, but it has big expansion plans in the UAE, where demand is strong from the wealthy expat community.

An R&B Grillhouse is expected to open in Abu Dhabi in January, and an Isabella Cucina Italiana restaurant will open in Dubai in early 2024 followed by a 6Head in mid-2024.

“People in the UAE have money, they want quality food, and they love meat,” Mr Michael said.