Peter Smits had the dream of crossing the border with his tapas formula 't Zusje. On his own, that proved more difficult than expected, so he sold a majority stake to a German party. 'There might just be Kleine Schwester on the facade.'
No, Peter Smits had never imagined 36 branches of 't Zusje, spread throughout the Netherlands. Our country's fourth largest hospitality chain began with a small sandwich store in Uden. In 1998, Smits, a hospitality man at heart, took over a sandwich store and converted it into restaurant De Baron. But a fire forced this business to close its doors for a few weeks.
'Then I had time to think about a new direction,' Smits explains. 'Because I wanted the guests in my restaurant to have more contact with each other and to enjoy burgundy. So I decided to make the dishes smaller and offer them as tapas for a fixed price, then the first in the Netherlands. That concept caught on so well that we had to move to larger premises in 2009. That restaurant was called 't Zusje van De Baron.
International rollout
It was the start of a successful formula, as more than 1.5 million guests visited the restaurant chain in 2023. There are now 36 restaurants on the menu; three of those restaurants are owned establishments, the rest are owned by franchisees. And as far as 't Zusje founder is concerned, a few more branches could be added in our country. But his real ambition lies in the international rollout of his concept.
Smits: 'I have been toying with the idea of crossing the border with 't Zusje for about three years. The brand value increases by a factor of three when you go international. I have had far-reaching exploratory talks with various foreign parties. But then you also find out that, for example, labor law, the tax system or catering legislation is totally different. That requires quite a bit from your own organization if you want to realize that on your own.'
But the plan to go abroad remained high on the agenda. Smits therefore engaged acquisition advisory firm Translink Corporate Finance to look for a party with which Smits could partner to realize his ambitions. 'That includes talking about selling shares. Fine, I had no problem with that. This way I can cash in a bit and realize my international dream.
Translink ended up with Gustoso, a German hospitality group with eight brands - such as 60 seconds to napoli, Burgermeister and Cucina - and a total of 170 restaurants in Germany, Switzerland and Austria.
'After an initial online meeting and mutual company visits, it was soon clear to me that both parties were on the same page,' Smits said. 'The knife cuts both ways this way. For Gustoso, 't Zusje is an entrance to the Netherlands and a step in their ambition to conquer the European market. And I can more easily roll out our concept in Germany and Belgium, for example, because of their experience, support and know-how.'
Kleine Schwester
The negotiations with the Germans went fairly smoothly. But because both parties' main focus with the deal was to work together, Smits says you don't negotiate rock-hard over every dot and comma. In the end, he sold sixty percent of his equity stake in 't Zusje to Gustoso. He then invested another amount in the newly formed Gustoso Groep Nederland in which both parties participate and Smits remains a director of 't Zusje.
As early as next year, 't Zusje plans to open its first restaurant in Germany, initially close to the Dutch border. But whether that business will open its doors with the Dutch name 't Zusje is beyond Smits. 'For me, that name is not so interesting. Much more important is that the brand, the concept and the quality remain intact. They can fight in Munich to decide what the name will be. Soon there may just as well be Kleine Schwester on the facade.'
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