Newcomer to snap up restaurants

A NEW restaurant business will soon list on the Alternative Investment Market with plans to buy small eating chains and expand them.

Urban Dining, a £3m cash shell established by former PizzaExpress director John Metcalfe and former Punch Taverns director Tim Woodcock, will seek about three acquisitions.

It will target established restaurant chains with about 20 outlets, offering main courses priced between £15 and £20, and plans to rapidly build up to 100 venues.

There are 25,000 restaurants in the UK, but Urban's bosses believe that the marketplace, with the exception of pizza, is highly diluted. It will avoid pizza sector acquisitions.

Urban Dining has the backing of five financial firms and its listing is sponsored by broker KBC Peel Hunt.