ew Spanish tapas restaurant, Candela, in Causeway Bay. Also on the agenda are ten more stores – some of which will be international – and there will be a focus on growing existing brands and building new ones. Recently, the business announced the appointment of industry veteran Steen Puggaard as CEO, succeeding co-founder Manuel Palacio, who will assume the position of chairman of the board. The two will work closely on new concepts, music, design and international expansion.  A pivotal moment In an interview with Inside Retail, Puggaard discussed Pirata’s plans for the future. “Pirata Group is at a pivotal moment in their journey – while we have seen great success, we believe in the capacity to achieve more. Our goal is to have 100 restaurants and a presence in five countries within the next five years,” said Puggaard, who has more than 25 years of experience in the sector and previously led major brands such as McDonalds, Burger King and Costa Coffee across Southeast Asia and his native Scandinavia. Puggaard revealed that in terms of international expansion, the Group is still considering which market to enter and will first need to undertake comprehensive marketing research and strategic planning. “However, we are definitely looking for markets in Asia and Middle Eastern markets and will explore different business formats including equity, joint ventures and franchises, taking into consideration the best value creation for our shareholders,” Puggaard revealed. New concepts and experiences Meanwhile, Hong Kong will continue to be an international city with an interesting mix of people and the Group is committed to creating more dining experiences in the future, Puggaard said. “In 2021, we were able to expand for the first time into Kennedy Town, Kowloon Bay, Quarry Bay, Stanley, Tuen Mun and Tseung Kwan O. We opened our first international outpost in Shanghai, a 1,560-square-foot, 80-seat site split between Pici and The Pizza Project,” he said. Last year, the business also created new concept Italian beachfront bakery Pane e Latte in Stanley and The Sixteenth, a new dining destination featuring four new restaurants at Taikoo Place in Quarry Bay. This year, Spanish restaurant Candela will open in November in Causeway Bay, helmed by executive chef Víctor Caballé Molina. According to Puggaard, the concept was inspired by the historic neighbourhood of Madrid de Los Austrias.  “On offer are small, ingredient-led dishes such as Pulpo (octopus), Gambas (prawn) and Jamón ibérico, all the way to Churros and Torrija (Spanish brioche). Guests can have as much or as little as they wish, washing it all down with Spanish wines by the glass and refreshing jugs of sangria,” Puggaard said. A change in consumer behaviour According to Puggard, there has been a distinct shift in consumer behaviour in Hong Kong, where dining has become more lunch driven. The Group swiftly adapted to this by turning some of its locations into all-day dining restaurants, with some outlets remaining open for the full day. “Lunch now represents 50 per cent of the Pirata Group business, whereas before it was 15 to 20 per cent. Additionally, when Covid-19 restrictions were lifted, there was an initial dip followed by a gradual uptick in visits,” Puggaard explained. Although home deliveries have increased since the onset of the pandemic, at Pirata Group, in-person dining experiences will remain its core focus. Puggaard believes delivery kitchens may also help to cater to customers’ needs. “Taking the UK as an example, around 20-35 per cent of all revenue is running through on delivery, depending on the specific segment. Delivery kitchens are a cost-effective way to gauge customer response to various cuisines by creating virtual brands,” said Puggaard. “If customer response is positive, we can build proper brick-and-mortar outlets. For Pirata Group, Deliveroo represented 10 per cent and 20 per cent respectively of our total sales in 2021 and the first quarter of 2022, while in the 3rd quarter onwards we are expecting this to be 6-8 per cent if things normalise.”