‘A few people tried to talk me out of it’: The Deutsche Bank analyst who opened up thriving Farmer J lunch chain
Former Deutsche Bank credit analyst turned restaurateur Jonathan Recanati is no stranger to dining ‘al desko’.
“Working at the bank, you basically work 24 hours a day and you have three meals a day on your desk,” he explains.
“As a foodie, I grew up with amazing food at home. I used to love cooking. [But] I found the options at the time were really disappointing and quite average,” he admits.
Growing tired of bland meal deal combinations and the mediocre sandwich selection at Pret A Manger constitutes a common complaint amongst workers in the City. However, Recanati decided to turn this frustration into a successful business – a chain of restaurants called Farmer J.
Farmer J first launched in 2014, with the former investment banker shoring up funds from friends and family to get his dream off the ground.
“I think a lot of people question going into the hospitality industry where the odds are always against you. And actually, quite a few people tried to talk me out of it,” he told City PM
Today Recanati operates 10 sites across the capital, including at locations in King William Street and St Paul’s and a newly opened chain in Piccadilly Circus.
It sells a range of freshly prepared lunchtime options targeting health conscious Londoners with its signature ‘fieldtray’ which serves grains, protein and a side in school diner style tray, a popular choice amongst diners.
The business has been performing well with Farmer J is on track to hit sales of circa £17m in 2023 and the business has plans to open six more site launches next year.
“We think we can get to at least 25 sites in London. London is definitely busier and almost back to normal [pre-pandemic] levels,” he adds.
“We are targeting areas where there’s a good amount of workers but there are also potential residential customers, tourists and shoppers.”
While Farmer J may be feeling a boost from workers returning back into the City, there is no denying that the hospitality sector has taken a beating in the last two years, as labour shortages and rising costs eat away at earnings.
An issue at the forefront of Recanati’s mind is rising business rates, which other prominent hospitality groups have warned could decimate the sector’s recovery.
Simon Green, head of rates at property experts Gerald Eve, calculated that businesses will pay collectively an extra £1.7bn from next year as rates are expected to rise in line with inflation.
“What we are finding very difficult is the way the system works,” he said. “The solution for business rates is definitely something that needs to be sorted out.”
“If you look on the high street, there’s so many empty units because it’s difficult to make a retail unit work with all the costs, energy [bills], rent and business rates. So I hope that does come under control in the future.”
But despite the headwinds facing the sector at the moment, it’s clear that Recanati stands by his decision to exit the world of banking, So what would his advice be for someone keen to make the leap today?
“If someone asked me today, for advice, to leave a secure job and to go build a restaurant, my initial advice would be no,” he said, though he recanted a little adding “unless someone’s ready for the journey”.
“The market is a bit more patchy because some areas are yet to come back [from Covid].”
He added: “I think you just need to be very diligent when you select your location and of course, you need to be just really on the mark with how you price things, because of inflation.”