DRG, owner of the Di Maggio’s, Café Andaluz and Amarone chains, has bought the city’s two Paesano Pizza restaurants and Sugo Pasta outlet in the city for an eight-figure sum, reports our sister title The Herald.
And the hospitality giant immediately announced plans to expand both brands, despite a challenging economic backdrop.
Owned by Mario Gizzi and Tony Conetta, DRG bought the business from restaurateur Paul Stevenson, whose vision for Paesano was to bring authentic Neapolitan pizzas to Scotland. He opened the first Paesano on Miller Street in 2015, followed by a sister outlet on Great Western Road two years later. The Sugo Pasta brand was launched on Miller Street in 2019.
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All three restaurants have been very successful and are considered to be some of the busiest in the country, attracting around 22,000 diners a week. With 250 shelters, Sugo serves more than 12,000 people a week.
Now DRG plans to expand its reach even further as bosses have revealed their intentions to open stores under both brands in other locations.
Mr Stevenson said selling The DRG restaurants would allow the brands to expand while maintaining the ethos and family ownership under which they have thrived.
Together, the three restaurants employ more than 230 staff, all of whom have now joined The DRG, and their combined turnover last year exceeded £15 million.
Mr Stevenson told our sister title The Herald: “I have had a number of approaches over the years from a wide range of potential buyers, including private equity groups and other large restaurant chains.
“However, having known The DRG guys for over two decades, it quickly became clear that they were the perfect fit to take Paesana and Suga to the next stage of their growth.
“Paesano and Sugo have absolutely exceeded any expectations we had of them when we first started the business nearly ten years ago.
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“After visiting Italy and tasting the phenomenally high quality of authentic Neapolitan pizza, I decided to introduce this concept to Scotland and focus religiously on the origin of the product and authentic regional Italian recipes.
“It’s a very simple proposition at its core, but the quality of the produce and ingredients we use, together with the craftsmanship of the experienced Neapolitan chefs, have proven to be a phenomenal combination.
“We currently serve around 22,000 people a week across all three restaurants and I’m really looking forward to seeing Tony and Mario grow the business while maintaining everything that makes Sugo and Paesano so special.”
DRG began with the opening of Di Maggio’s in Shawlands on the south side of Glasgow in 1985 and is now one of the largest independent restaurant groups in Scotland, with over 20 venues in its stable before its latest acquisition. In addition to the brands Di Maggio’s, Café Andaluz and Amarone, it has restaurants trading as The Anchor Line, Barolo, Cadiz and The Citizen. Earlier this year, the company revealed plans to relocate to London.
Recent moves have included a £1.5m investment to open a third Café Andaluz in Edinburgh at Edinburgh Accies Rugby Club’s stand in Stockbridge. Launched in 2002 in Glasgow, the Café Andaluz brand now operates seven branches.
Mr Gizzi said: “In our discussions with Paul it quickly became clear that we share a clear vision to bring the Paesano and Suga experience to more locations.
“We have shown time and time again that we are able to take exciting restaurant concepts and expand them in a planned and successful way, and it will be really exciting to do the same for Paesano and Sugo. They are great brands – everything from the signage to the interiors and especially the food is absolutely perfect.”
Mr Conetta commented: “We have watched with admiration as Paul has built restaurants into strong brands in a very competitive market and we are really pleased that he will remain on board as an advisor as we develop our plans to expand Paesano and Sugo more broadly. .”
Mr Stevenson added: “I know the business is in very safe hands and that Tony and Mario will really look after it. We have great employees and a hugely engaged management team at the company, and they will undoubtedly be given many more opportunities to grow within the larger DRG business.
“It’s extremely exciting and I can’t wait to see how the company develops over the next few years.”
Alan Creevy and Peter Darroch of CDLH were instructed by Paul Stevenson to assist in brokering the deal between the parties.
Mr Darroch said: “It was a pleasure to be part of this inspired transaction and we congratulate Tony, Mario and Paul on closing the deal in a very quick timeframe.”