Brasserie Bar Co targets 20-strong estate of pubs in the next three years; considers reviving Chez Gerard: Brasserie Blanc operator Brasserie Bar Co, led by Mark Derry, is to target an estate of 20 pubs in the next three years after its first two openings, in Weybridge and Teddington, under the White Brasserie banner, have gone from “strength-to-strength”. The company stated: “The basis of this business is a pub offering brasserie-style food, utilising skills and knowledge developed in Brasserie Blanc with a significant drinks-led element. We believe that transferring our skill for running profitable premium casual dining restaurants is the key to success with the pubs, which we think have considerable growth opportunities.” The company has also retained one Chez Gerard site, in Bishopsgate, from the seven it acquired in November 2011 from the administrator of Paramount Restaurants. Six of the seven have been converted to Brasserie Blanc sites but the company is exploring whether the Chez Gerard brand can be revived at the Bishopsgate site. It stated: “The Chez Gerard brand had become very tired but in its heyday it had been affectionately regarded as part of the London restaurant scene. We see the opportunity for reviving the brand and rolling it out in the future – early indications from Bishopsgate are encouraging.” The company said its strategy was to treat the remodelled Chez Gerard as a ‘research and development project in the short term and, if successful, turn it into a scalable brand for the future’. The company will open its twentieth Brasserie Blanc in Beaconsfield in November this year. Sales in the year to June 2012 hit £20.3m compared to £15.7m the year before. Restaurant Ebitda was £3.3m compared to £3.1m the year before. The company reported that like-for-like sales in 2012 were level with the year before. It stated: “Given the backdrop of the Olympics and the Diamond Jubilee, both of which had a significant negative impact on the business, this was a creditable performance. These two events impacted on London’s restaurant and leisure businesses and news of Londoners staying away during the Olympics and the Jubilee period were, in our experience, correct. Analysts tend to place considerable emphasis on like-for-like sales growth and, whilst we acknowledge the merits of the metric in an inflationary era, we believe that stable profits are the real test of the longevity of brand. We are reluctant to pursue like-for-like profit growth at the expense of the long-term welfare of the business.”

Boris Johnson to list pubs as “community assets”: London Mayor Boris Johnson has conceded to political pressure by agreeing to list London pubs as “community assets” in his planning guidance for councils. The Mayor told Tory Assembly members he would include a specific protection for community pubs to stop them being taken over by developers. This would mean that the onus to protect a local pub would lie with borough planning departments rather than with the local community, as is currently the case. London has lost 1,300 pubs in the past decade. Assembly member Steve O’Connell, a Conservative, said: “Good pubs are an asset to London’s communities.”

BII names top six UK licensees: The British Institute of Innkeeping has named the six finalists in the prestigious BII 2013 Licensee of the Year awards. The half dozen pub operators will now face a nine-strong panel of judges before one of them is named winner. The finalists are: Dennis Forsyth from Cheers Café Bar and Tavern in Fraserburgh, Aberdeedshire; Steve Herbert from The Old Spot Inn in Dursley, Gloucestershire; Cheryl Hickman of The Bull Inn at Barton Mills, Suffolk; Marc Jones from The Sportsman in Lower Kingswood, Surrey; Ashley and Kelly McCarthy from Ye Old Sun Inn at Colton, York and Annie Power from The Coal Hole in London. The 2013 Licensee of the Year will be unveiled during the 25th BII annual lunch at Grosvenor House on 14 May.

Chicken sandwiches pass beef burger in frequency of quick service restaurant menus in the US: Chicken sandwiches have surpassed beef burgers in number on quick service restaurant menus in the US, according to Mintel research. The shift on menus began in 2010 when beef prices spiked - in the week ended April 9, 2010, wholesale prices for 90% lean boneless beef were up a startling 32% from levels the previous November. In the fourth quarter of 2012, Mintel’s survey counted 330 chicken sandwiches and 323 burgers on the menus of major chains.

Discredited banker steps down from Compass Group: Sir James Crosby, the former HBOS chief executive who has offered to hand his knighthood back, has this morning resigned as a non-executive director of Compass Group with immediate effect. Compass chairman Sir Roy Gardner said: “On behalf of the board, I would like to thank James for the significant contribution he has made to the company over the last six years.”

Prezzo reports turnover and profits increase: Prezzo, which runs 211 restaurants and is headed by Jonathan Kaye, has reported sales grew by 17% to £144.5m in the 52 weeks to 30 December 2012 and pre-tax profit rose to £17.3m (2011: £16.1m). Chairman Michael Carlton said: “We launched 31 (2011 – 27) new restaurants in 2012 (three were leasehold units acquired in December 2011) and two restaurants were closed during the period and so at the end of the period there were 210 (2011 – 184) restaurants in the estate. These openings included prime city centre locations in London (in the newly refurbished main concourse of Kings Cross Railway Station) as well as Manchester, Bristol and Bath. Other notable successes included Beaconsfield, Marlow, Southport and Chingford. 2012 was an important and successful year for our Chimichanga brand. With increasing confidence in our Mexican offering, we have expanded this concept in a wider range of locations (including Bournemouth, Bromley, Ealing and Bury St Edmunds) and by the end of the year we were trading from 28 units (2011 – 15 units). So far this year, we have opened our first restaurant in Northern Ireland, in Victoria Square in Belfast, and we are on site in a further eight locations. Our property pipeline for 2013 is largely finalised and plans for 2014 and beyond are also taking shape. As a result we would anticipate opening around 25 new restaurants by the end of the year. This is the fifth consecutive year that we have entered without a clear conviction that the UK economy can deliver sustained growth on any meaningful scale over the next twelve months. However, Prezzo has self–evidently prospered during this period of uncertainty and we will continue to drive the business forward, striving for excellence in all that we do.”

Restaurant and bar sales boost Gleneagles: Gleneagles Hotel, owned by Diageo, has seen a £1 million increase in turnover to £36.7m, with the 3% rise linked to improved revenue from restaurants, bars and leisure activities. Room sales were “broadly level” in the 12 months to June 30, 2012, with pre-tax profits coming in at £591,000, which was a small decline from the £595,000 of the previous year. The five-star hotel saw its operating costs tick upwards £35.2m to £36.2m. Much of that extra expenditure was due to preparations for the Ryder Cup in September next year. David Kemp, finance director, said: “The profit-and-loss account included costs of £405,000 to complete the final changes to the PGA Centenary Course, including redesigns of the ninth and 18th holes.” The hotel has 851 staff.

£2m Maidstone nightclub to open this weekend: A new 16,000 square foot nightclub is to open in Maidstone on Saturday (13 April) after an estimated £2m investment. The Gallery will open in the former Loder & Payne building on 87-88 Bank Street. It will offer three rooms over two floors of the Grade II listed building. A huge chandelier shipped in from Paris hangs over the dance floor, which is surrounded by a 360-degree gallery, linked to the dance floor by a grand staircase. Upstairs, The Library offers a different atmosphere aimed at those who want to relax away from the dance floor.

Kentucky Fried Chicken scraps Glasgow plan: Kentucky Fried Chicken has scrapped a plan to open a restaurant in Port Glasgow. The company applied in February to develop the former Clydeport filling station beside the A8 dual carriageway. A KFC spokesperson said: “We have withdrawn our planning application for a new restaurant on Greenock Road, Port Glasgow for business reasons. Customers can continue to enjoy KFC at our drive-through in Greenock and we remain open to the possibility of looking at new sites in the future.”

Independent Gloucester trader launches Glosta Coffee campaign: Independent Gloucester trader Ian Spencer has launched the Glosta Coffee campaign to fight back against big chains invading the city. The 52-year-old was inspired to launch the campaign after learning a ninth Costa could be coming to the city. His campaign logo is a tongue-in-cheek take on the Costa branding, with a rugby ball instead of a coffee bean. He said: “We wanted to celebrate the fact we are local and the coffee is local. We are overrun by coffee chains and people who want to set up on their own can get overlooked.”

St Pancras champagne bar operator Searcy’s reports Ebitda of £847,000: Management contract business Searcy’s, which also runs the St Pancras champagne bar, has reported turnover of £33,700,712 in the year to 30 June 2012 – turnover is not directly comparable to the period before which covered 18 months and was £47,190,845. The company reported Ebitda of £847,000 compared to £1,367,000 in the 18-month period. Profit before tax was £17,323. The company won the contract to provide catering at Blenheim Palace during the year and opened the Roman Bath Kitchen in Bath in May 2012. Searcy’s is also supporting London Southend airport in developing its food and beverage proposition. 

Strada trials lunch box offer: Pizza chain Strada has begun a time-limited trial of a lunch box. Monday to Friday from 12pm - 4pm, customers can order a hand-stretched pizza from Strada’s ‘favourites’ list, a mixed side salad and a San Pellegrino sparkling fruit beverage for £8. The company states: “This new offer is inspired by the recent ‘5,555,555 PIZZAS!’ milestone we’ve hit here at Strada, and we look forward to freshly baking millions more for you with the new Lunch Box.”

Zazu’s Kitchen doubles up: Zazu’s Kitchen, co-owned by Toby Bywater, who previously worked with Raymond Blanc, has opened a second branch on North Street in Bristol’s Southville area. The first site is located on Gloucester Road in Bishopston. Zazu’s Kitchen is a neighbourhood café, restaurant, and bar. Bywater said: “North Street has a vibrant food and coffee scene with a lot of great and varied outlets, but we feel there is room for a quality, neighbourhood eaterie with a modern European menu.”

River Cottage adds 40 apprenticeship places: River Cottage, the business led by Hugh Fearnley-Whittingstall, has added a further 40 young chef apprenticeship to its existing 30 places and has launched a competition to find its 2013 ‘Rising Star’. The application window has been extended by one week for its first intake of apprentices in June, and the company will now be recruiting a further intake that will start the scheme in September. Chris Griffin, head of education, said: “The response we have had has been fantastic and clearly much greater in number than first expected.” River Cottage is also looking for one inspirational character to become the face of the scheme and gain the opportunity to secure 12 months employment working with the team at River Cottage headquarters at Park Farm.

JD Wetherspoon gets alcohol licence in Wells, Somerset: JD Wetherspoon has been granted a licence to sell alcohol on the site of the old Wells Emporium on Priory Road in Wells, Somerset (population: 10,406). Wetherspoon spokesman Eddie Gershon said: “We are as keen as ever to open in Wells and are delighted to have been granted licensing permission. We still need to obtain planning permission in order to complete the deal. Our aim is to invest more than £1 million and create 40 jobs in the city.”

Prezzo offers tapas-style main course dishes: Italian restaurant group Prezzo has launched its new Spring menu – with the introduction of a selection of small tapas-style main courses aimed at sharing - there are eight dishes, two of which are vegetarian. The non-vegetarian dishes are: risotto carbonara (classic risotto with pancetta bacon and cream, baked with grana padano cheese); two mini calzones (one with pepperoni, the other with mushrooms); antipasto (prosciutto, salami milano, ventricina salami, buffalo mozzarella, mixed olives, ciabatta bread and olive oil); prawn bruschetta (toasted ciabatta bread with cherry tomatoes and prawns in a chilli garlic butter); arancini (crispy risotto balls filled with field mushrooms and mozzarella cheese served with pomodoro sauce) as well as macaroni Florentine (classic macaroni cheese with spinach). The two vegetarian dishes are: mushroom crostini (sautéed field mushrooms, spinach and garlic butter served on a toasted ciabatta bread) and tricolore salad (sliced plum tomato, buffalo mozzarella cheese, avocado and rocket). Additionally Prezzo sites are serving two new executive pizzas; steak and rocket as well as queen margherita. Four new main dishes; have also been introduced: fillet of salmon, roasted duck leg, chicken, mushroom and asparagus risotto and pollo calabrese. Prezzo executive chef Paul Lewis said: “The small main courses are perfect for sharing with family and friends.”

Second Costa Coffee drive-thru planned for Bedford: Bedford is thought to be the first town in the UK set to host two Costa Coffee drive-thrus. Plans to add a new Marks and Spencer and Costa Coffee drive-thru on Interchange Park, east of Ampthill Road, Bedford, has been submitted by Howard Property Group (HPG). William Jewson, development director at HPG, said: “The development is perfectly positioned for convenience, making it a great fit for a Costa Coffee drive-through which we hope will be a welcome break for those travelling in and out of Bedford.” The news of the second drive-thru comes after it was announced last October that Bedford Borough Council had given the go ahead to another Costa drive-thru at the nearby St John’s Retail Park in Rope Walk.

Restaurateur Jaf Siddiqi to launch new bar and restaurant concept: Businessman Jaf Siddiqi is to launch a new bar and restaurant concept called City Wine Bar and Kitchen at the City Buildings in Liverpool later this week. Siddiqi co-founded Viva Brazil, the Brazilian steakhouse chain. The food offer involves small plates, deli boards, salads and dishes from the grill. Siddiqi is looking for further sites in Chorlton, Didsbury and Wilmslow. 

Spirit to add York pub to its Taylor Walker estate: Spirit Pub Company is to add York’s oldest pub, Ye Olde Starre Inn in Stonegate, to its Taylor Walker estate after a £360,000 refurbishment – it will re-open in the first week of May after a two-week closure period. General manager Adrian Denney said: “To receive the Taylor Walker badge is an acknowledgement of the history of our pub, the great location we have and the brilliant service we can provide. We also have an ambition to be the best place for cask ale in York and will be launching with six hand pulls on the bar. We’ll be working with local and national breweries with the aim of beating last year’s total of 418 different beers from 100 independent breweries.”

Brewdog reveals date for annual general meeting: Scottish brewer and retailer Brewdog, which has 6,569 shareholders, will hold its AGM on Saturday, 22 June at the Aberdeen Exhibition and Conference Centre. The company stated: “The BrewDog AGM 2013 promises to be full of beery surprises, other surprises, great music, cool people and just pure out awesomeness. We will seek to not only give our Equity Punks the low down on all of the happenings at BrewDog, but also to get together with them to celebrate all the awesome things we have achieved in the name of craft beer over the past twelve months. Oh and it is our sixth birthday party too.

Handmade Burger Company to open second north east site: Handmade Burger Company is to open in Newcastle’s Gate leisure scheme, which is owned by The Crown Estate. The letting forms part of The Crown Estate’s strategy to further enhance the leisure mix at the Gate, creating a destination that continues to respond to the demand of existing visitors, but also does more to appeal to other consumer groups, like families. It will be Handmade Burger Company’s second opening in the north east. The Crown Estate was represented by David Coffer Lyons.

Wayne Brown – Restaurant Group and Prezzo are set to outperform: Canaccord Genuity leisure analyst Wayne Brown has tipped Restaurant Group and Prezzo as the companies set to outperform in the UK eating out market. He said: “We regard the restaurant sector as attractive. It combines above GDP organic growth with high returns on investment and strong cash generation. The UK eating out market is worth £70bn but the branded casual dining segment accounts for only circa £4bn, 5.7% of the market. This segment of the eating out market continues to exhibit strong structural growth. Coupled with increasing frequency as a leisure activity, this segment is forecast to achieve 6.5% Compound Annual Growth Rate (CAGR) 2012-2015. We forecast Restaurant Group and Prezzo to outperform with earnings forecast to grow by a CAGR of 11% 2012-2015E. We view both Restaurant Group and Prezzo as exceptionally well-run businesses that have created significant shareholder value from organic roll-out. Both companies are growing due to their exposure to the positive structural dynamics of the causal branded segment and at the expense of their competitors. Whilst both shares are trading at five-year highs, they remain below their five-year peak PE multiple despite achieving peak earnings. With positive signs that like-for-like sales/organic growth is improving, we feel Restaurant Group and Prezzo are entering a period when earnings momentum and cash flow returns should rise. The positive dynamics of their investment case is underpinned by consumers’ trust towards their brands driving higher frequency. We are buyers of both and increase our target price for Restaurant Group to 540p (from 440p) and Prezzo to 100p (from 80p) supported by a number of valuation methodologies.” 

Eat reports turnover up, profits down; aims for 200 sites in the next three to five years; HMRC wants to reclaim £2,763,173: Sandwich shop chain Eat, which has 118 sites and was founded by Niall and Faith MacArthur, has reported turnover increased to £94,950,620 in the year to 28 June 2012, up from £87,359,331 the year before. Profit before tax dropped to £1,122,038 from £2,719,266 the year before after an exceptional item of £652,092. The company reported sales rose 8.7% during the year and gross profit margin climbed 47 basis points. Eat stated: “The strategy continues on a twin-track of driving growth and operational performance from the existing estate and targeting new Eat store openings in a select number of prime locations. The directors consider that the business still enjoys significant opportunities for controlled growth despite the current challenging macro-economic and retail environment. The business made significant investment in the year, opening eight new stores and investing in a growth infrastructure. Management intends to develop the business further in the UK by investing in product innovation and extensions, people and a brand development programme that will elevate and further differentiate the store experience. The sub-£10 category of the food and drink sector has continued to prove relatively resilient. Eat will continue to provide customers with high quality innovative products and even greater value offerings, and to build a loyal customer base.” The company repaid £1.2m of senior bank debt during the year. Exceptional costs in the period relate to the closure and disposal of the Kingsgate Parade site and the impairment of leasehold improvements in certain stores. Eat reported that the HMRC notified the company in July 2009 that it wanted to reverse a previous decision over the zero-rated VAT status of a product category – the company had previously received £519,249 in December 2008. The company stated: “The repayment by HMRC to the company followed an investigation by HMRC at the time and consequently the board will defend its position vigorously.” However, if the company is not successful in defending its position, the VAT repaid to the company, together with the amounts which would be deemed output VAT, would be repayable to HMRC. At the year-end, the potential VAT obligation is estimated to be £2,763,173 (2011: £2,003,680.)