Robin Rowland – YO! Sushi can grow to 200 sites in the UK; US market wide open: YO! Sushi chief executive Robin Rowland has told Propel that he believes the brand can grow from its current 65 sites to as many as 200 in the UK. He also believes the US market, in particular, is wide open at the moment. He said: “YO! Sushi is well-established and is well-understood - and continues to have like-for-like growth in the UK 15 years on from its inception, which tells me it will continue to grow organically. I think one can see 150 to 200 sites in five to ten years’ time in the UK. But internationally, what’s fascinating is the universal appeal of our quality food at speed. We’ve had great success in the Middle East, huge success in Oslo airport - we’ve opened up a first site with SSP - and America is a good target market for us with the metro districts. In America, it’s very interesting. You have a company called Blue Circle, which has half a dozen sites in the West Coast. There’s another company called Wasabi - no connection to the UK company - that has half a dozen sites on the East Coast and that’s it. (It’s) quite extraordinary because a chain isn’t a chain in America until you’ve got 100 sites and there’s no one near that at the moment. In the UK we are only about half way to our roll-out potential. The great thing about YO! is the flexibility of the concept. The footprint can go into a thousand square feet or two thousand square feet - it can (operate) in a railway concourse, the middle of a department store, a shopping centre, an ‘in-line’ unit or it can be in middle of Bluewater concourse. It’s the ‘railway set’ you can put anywhere and it doesn’t need extraction so the opportunity to put YO!s in different locations is pretty unparalleled.”

Fast casual operators take record US market share: Fast-casual restaurant chains have taken the largest ever share of positions in a list of the US’s largest franchised operators. Four of the ten fastest-growing concepts in the list are limited service chains. Overall, limited service restaurants are the most popular segment in US foodservice franchising and they outperformed the family dining and casual dining segments last year. Eight of the 20 full service concepts in the Top 200 ranking saw sales declines and some of those declines were steep. Memphis-based Perkins, which filed for bankruptcy protection last year, saw an 11.6% decline in sales while Chili’s, Hooters, Round Table Pizza, TGI Friday’s, Uno Chicago Grill and Houlihan’s also saw declines in system sales. Franchise Times, which compiles the list, said: “One potential explanation for the difference in performance is customer satisfaction. According to the University of Michigan’s annual American Customer Satisfaction Index, fast-food restaurants (in 2012) scored just as high as their full-service concepts for the first time in the index’s 18-year history. Recession-weary customers are giving casual dining chains worse scores on value, while they’re increasingly pleased with the quality at limited service chains. A few casual dining chains have found the recipe for success last year – notably Buffalo Wild Wings, the 52nd largest restaurant franchise, based in Minneapolis, whose system sales grew by 20%. The chain has hit on the right formula of alcohol, chicken wings and sports – but it also has an innovative model that allows customers to order their food at a counter, similar to fast food.”

Propel Info and ALMR return from Chicago after visiting more than 30 concepts: A group of industry operators, who visited Chicago at the weekend with Propel Info and the Association of Licensed Multiple Retailers (ALMR), have returned to the UK after visiting more than 30 emerging concepts in the city. Among the concepts the group visited were: Chucks, Angels and Demons, Hash House A Go Go, The Meatloaf Bakery, Native Foods Café, The Protein Bar, Roti Mediterranean Grill, Argo, Sprinkles Cupcake, Bandera, Rocket Bar and Grill, Millers, Tilted Kilt, Farmhouse, Revolution, Boiler Room, Logan Bar and Grill, Sunda, Mercadito, Hub 51, Rooftop at Wit, Brick House Tap and Tavern, Rosati’s Pizza, Potbelly, Bub City, Howells & Hood, Food life Court @ Water Tower, Food Easy and ZED 451. The group, which stayed at the Hard Rock Hotel, also visited the National Restaurant Association show. In the coming Friday Propel Opinion, trip attendees Paul Charity, David McHattie, chief executive of the ALMR, and Luke Johnson, partner at Risk Capital, will deliver their views on the current US restaurant scene.

McDonald’s considers scaling back its menu: McDonald’s is thinking about chopping back its menu – it has grown to 145 menu items in the US, up from about 85 in 2007. The expansion of the menu has been slowing down service, according to a franchisee email obtained by Bloomberg News. The email named seven items for possible removal, including the Caesar salad, the McSkillet Burrito, and the Southern Style Biscuit. The company has recently cut Angus burgers, Fruit & Walnut salads, and Chicken Selects from menus.

Starbucks boss argues restaurants must ‘give back’: Starbucks chief executive Howard Shultz has argued that restaurants must contribute more by balancing their drive for profitability with a greater sense of social conscience during his keynote speech to NRA Show attendees in Chicago. He said: “We have to stand up and be accountable. We have to do more for our people, we have to do more for our communities, and I think we in a way are living proof that. You can share success with your people, bring them along, and create followers and believers because they’re part of something larger than themselves. We made the mistake in 2007 and 2008 of talking about millions of customers per week and thousands of stores. That’s ridiculous. We don’t have a company of thousands of stores and millions of customers. The moment of truth for Starbucks and all of you is one customer, one Starbucks partner wearing the green apron and one extraordinary experience based on the best-tasting coffee on the planet. We want to create a connection with our customers that’s not based only on trying to ring the register but demonstrating a heartfelt commitment to communities we serve and where our customers live.”

Wine drinkers consume less but spending more: Wine drinkers are drinking less but buying more expensive bottles of wine, pushing the average spend on a bottle of wine to an all-time high of £5.11, according to Nielsen figures. Sales of bottle of wine under £5 were down by 8% last year, which equates to 50,171 fewer bottles. Sales of bottles of wine costing between £5 and £7 rose by 13% to 30,768 bottles. But the biggest rise, a full 16%, was in bottles of wines costing more than £7. Australia is the biggest supplier, followed by Italy and then France.

YO! Sushi owner enters race to buy Byron: The private equity owner of YO! Sushi, Quilvest, has joined the race to buy ‘better burger’ concept Byron for £85 million. Quilvest, which acquired the sushi chain in 2008, and Searchlight Capital Partners are understood to be among the private-equity houses that are through to the second round of bids for Byron. The burger company is owned by Gondola Holdings. Byron is set to report underlying profits of £10m this year. The chain was founded by Tom Byng in 2007. Most of the chain’s 30-plus restaurants are in London, including Putney, Greenwich, Camden and Hoxton. But it also has outlets in Cambridge, Kent and Oxford and plans to open one in Manchester. Gondola is controlled by private-equity firm Cinven. Byron nearly doubled pre-tax profits to £2.2 million, on sales of £28.6 million in the year to July 2012.

New Marco Pierre White restaurant opens: A new Marco Pierre White restaurant has opened its doors in Exeter. Called Marco’s New York Italian, the 92-cover restaurant is located next to the new Hampton by Hilton hotel at Exeter Airport. Celebrity chef Marco Pierre White said: “It’s great to be open and I can’t wait for diners to experience my own take on a New York Italian. I have been to many Italian restaurants in New York, so for me making sure the atmosphere is right is vitally important as it sends a clear message to the diner that there is a strong passion for the food, quality of service and overall dining experience.”

Robin Rowland – it’s been a great trade-off sitting on the Marston’s board: YO! Sushi chief executive Robin Rowland has described the benefits that have accrued to Marston’s and YO! Sushi since he became a non-executive director of the Midlands brewer and retailer. He told Propel: “I said to our investor that there’s a trade-off here. I can bring back discipline and strategic insight to YO! Sushi in return for me giving some of our knowledge and insight on food. It’s an equal trade off - I’ve come back probably much more considered and thoughtful and strategic in leading YO! than I would have been without having done that.”

Ralph Findlay – we don’t expect to have many tenanted pubs in the future: Marston’s chief executive Ralph Findlay has reported that he does not expect the company to be operating many tenanted pubs in the future as it converted pubs to a franchised model. The company currently has around 400 tenanted pubs having converted around 600 to franchised. Findlay told Propel: “We expect to have very few tenanted pubs as we increasingly convert them to franchised. The franchised model seems to us to be the ideal operating model for tenanted pubs. Converting pubs to franchised changes the nature of the relationship (with licensees) – they’re the best of the managed and tenanted situation. And we’re of a size where we are able to be close to our lessees. For these two reasons we believe the impact of a statutory adjudicator will not be particularly significant (for Marston’s).”

Six more Revere pubs in 2014: Marston’s chief executive Ralph Findlay has reported that he expects the company will convert six more pub to its unbranded premium Revere Pub Company estate in 2014. The company has converted five pubs to Revere since the project was launched last autumn – and expects to add one more this year. “We are very encouraged by the progress so far,” said Findlay.

Redcomb Pubs appoints new executive chef: Redcomb Pubs, the led by former Mitchells & Butlers marketing executive Dan Shotton and Mark Draper, has appointed a new group executive chef. Chris Spencer has joined the executive team, taking responsibility for all of the groups kitchen recruitment, training, purchasing and menu design. He has a wide experience in trade both front and back-of-house, having held roles with Luminar Leisure and Urban & Country, as well as owning his own pub and restaurant for over eight years. Redcomb currently owns six sites across the south east and runs a further three sites on behalf of BFI Limited, investors in the company. Shotton said: “I’m delighted to welcome Chris on board in what is a hugely exciting time for the company. Whilst the overall climate has been tough this year, our performance remains strong - and delivering consistently delicious food remains a key driver in maintaining growth and exceeding our budgets. We remain focused on growing our estate by three to five sites a year, and hope to be exchanging on a couple of new properties in the next few weeks.”

Harvey’s increases tenant support: Harvey’s, the Lewes based brewer and retailer, has launched a new tenant support package to help licensees. Half-day workshops provide tenants with training on the secrets to effective marketing. Estate manager Geoffrey Denne said: “Our tenants have run some wonderfully located and historic pubs but we wanted to help them drive more business by equipping them with the marketing skills they need to help them in today’s highly complex, and competitive market. Individual tenants need to have an exciting on-line presence as well as a traditional marketing strategy, and we at Harvey’s realise they need help with this if they are to compete effectively.” Harvey’s is working in conjunction with one of the UK’s top trainers, Ali Carter, The Pub Mentor.

Luminar launches first employee intranet: Nightclub operator Luminar Group has launched its first employee intranet to communicate with its 2,000 employees nationwide. The company, which was bought out of administration by chief executive Peter Marks and a team of investors 18 months ago, operates 55 nightclubs nationwide and is undergoing a major culture change programme designed to refocus and re-engage employees behind its corporate vision and aims. Commenting on the launch of the site, Connections, Marks said: “As a company with a new culture, it’s really important that we engage with our employees so that they are clear on what we are trying to achieve and the role they all play in making it a reality. It’s a great tool to foster two-way communication with our teams on the front line and gives them an input into how the company operates.” Connections is designed to remove any communication blockages and allows the team to communicate consistent, timely messages at all levels. Written in an informal style, with lots of visual pictures and a colourful, eye-catching style, it is designed to be informative and inspirational. Marks added: “It’s a good way for me to keep in touch with my wider team and to let them know what I’ve been up to. It’s also a great forum to recognise all the positive things I’ve seen whilst I’ve been out and about and to highlight the areas we need to focus on.” Developed in-house, with support from a number of online programmers, the blogs are updated weekly and sent out every Tuesday. Topics covered range from light-hearted content on staff incentives and competitions, to business focuses like marketing and finance and the chief executive’s blog.

Former Coral Inns nightclub comes on the market for £300,000: An iconic Belfast nightspot has gone on the market with a price tag of £300,000. Coral Inns, the former owner of Rain nightclub in Tomb Street close to the Cathedral Quarter, went into administration in August last year. The business comes with a leasehold interest in the building, described by agents Osborne King as a “converted former bond warehouse” which can hold 520. Coral Inns signed up to a company voluntary arrangement at the end of 2011 after running up debts with HM Revenue and a drinks supplier.

Gloucestershire licensee goes multi-site: Steve Luckett, who runs Abbeydale’s Ridge and Furrow pub, Gloucestershire, has now also leased The Beacon Inn at Haresfield. The freehold is owned by Geoff Billett, who acquired it from Enterprise Inns. The venue was built in 1857 when the railway came through the village, it was originally called The Beacon Inn and Railway Hotel. It re-opens at the end of this month.

Award-winning gastro-pub to add 11 letting bedrooms: The award-winning Bell at Horndon on the Hill in Essex, run by the Vereker family for 75 years, is to add 11 letting bedrooms to its existing 15. The Vereker family has acquired the house next door and is developing the property to create the additional letting bedrooms.

Leisure sector veteran Robert Breare quits Snoozebox: Snoozebox founder Robert Breare has quit the temporary hotel specialist, less than a month after stepping down as chief executive to concentrate on sales and development. The Aim-quoted firm, which uses converted shipping containers to create temporary hotels at events such as the Edinburgh festivals and the Silverstone Grand Prix, admitted last week that it needed a “more rigorous approach to management” and extra funding to support its plans this year. The company, which is fronted by former F1 racer David Coulthard as its president, last month appointed a new finance director and said chairman David Morrison would chair its executive committee. Breare, the former chairman of designer label Ted Baker and the co-founder of hotel chain Malmaison, stepped down as chief executive following a “disappointing” full-year loss.

Ralph Findlay – cake-away proving a success: Marston’s chief executive Ralph Findlay has reported a new cake-away offer – customers can take-away coffee and cakes from sites at its new-build pub restaurants. It is proving a success since it was introduced at the start of the year. He said: “It’s going really well, particularly in Scotland – as a Scot, I can report that Scots like their cakes. I think this is a good example of how pubs are changing.”

Fast cask now accounts for one-third of Marston’s cask beer production: Marton’s chief executive Ralph Findlay has reported that the companies revolutionary new Fastcask product, which is ready-to-use cask ale, now accounts for one-third of the company’s cask ale volumes. The product has now been licensed to other companies. “I think it is something that differentiates us in the market,” he said.

Mood Pubs buys seventh site: Mood Pubs has bought its seventh site, The Plough in Mirfield, West Yorkshire. Nick Thomas of agent Fleurets, who handled the sale, said: “The addition of The Plough takes the group’s estate to seven and follows a number of recent sales through Fleurets in and around the Kirklees area. The Plough is the third pub which I have assisted Mood Pubs in purchasing in the last two years and we wish them well with this latest acquisition.” The Plough is located on Shill Bank Lane within an established private residential area around one mile to the north east of Mirfield town centre. Mood Pubs plan to close The Plough for around four weeks whilst they carry out refurbishment. Peter Mason of Mood Pubs, said: “We intend to create a community orientated pub which operates a good food and good ales policy as in our other pubs. The function room will be available for local groups and charities and of course our family friendly policy is backed up by our famous ‘no swearing’ rule”.

Innventure site wins coveted five star AA rating for a restaurant with rooms: Innventure’s The Wellington in Welwyn has won the AA’s prestigious five star rating for a restaurant with rooms and has also won an AA rosette for the quality of its food. The award comes three years after the venue re-opened with six unique bedrooms after a devastating fire. Wellington head chef John Beardsworth said: “I’d always hoped that as head chef of The Wellington this would be something we could achieve and I’m pleased that all the hard work and skills of the team have been recognised by the AA.” The AA Five Star rating comes a year after The Daily Mail’s anonymous hotel inspector awarded the venue a top rating in his Saturday review. He wrote: “A fire burned The Wellington to the ground three years ago. I don’t know what it was like then, but what’s here now is a triumph. Many of the wood beams seem to have survived and there’s plenty of bare brick, albeit barbecue-tinged in places. There may be few other choices in Welwyn, but this is definitely top of the pops.” The Wellington is one of a small group of individually designed coaching inns and gastro-pubs operated by Innventure, set up by former Mitchells & Butlers executive Chris Gerard. They include the Cross Keys in Saffron Walden and The Rusky Gun in St Ippolyts, near Hitchin. 

Marston’s sells £70m of new-build pubs to Legal and General Property on a sale-and-leaseback: Legal & General Property has completed the purchase of a portfolio of 27 new-build Marston’s pubs for £70m, in a sale and leaseback deal. The properties are all let to Marston’s on and have been purpose-built for the pub/restaurant chain within the last seven years. L&G said yesterday that they were situated across the UK, providing “a good geographic spread, with 54% located in the south east, East Anglia and the south west, 32% in the Midlands and north of England, and 13% in Wales and Scotland”. The properties are predominantly held freehold, with the remainder on long leasehold structures at peppercorn rents, L&G said. Adam Kerr, head of long income transactions, said: “Let to a market leading pub operator, the portfolio acquisition not only offers good diversification, both by sector and geography, but also a secure, long-term income stream which is linked to RPI and therefore provides a good hedge against inflation.” Savills advised Legal & General Property and Darren Moorhouse of DCLM Commercial Property acted for Marston’s.