Barburrito co-founder quits: Paul Kilpatrick, co-founder of the Manchester-based Mexican food chain Barburrito, has left the company to pursue other interests. The news came as the company reported a rise in turnover and said it was looking at four new stores in 2014. Morgan Davies, the company’s other founder, said although Kilpatrick has now stepped down as a director of the business he remains a shareholder and involved with the company. Davies told Insider Business: “Paul and I have one way or another been in business together for over ten years. I’m operating as chief executive now but everything else remains as is.” Barburrito has reported a 16% rise in turnover to £4.6m for the year to 31 March 2013, up from £4m for the same period last year. However, the costs of investing in infrastructure and staff have meant that pre-tax losses increasing from £77,700 in 2012 to £328,000. The chain now has ten locations, most in the north, with its first London outlet opening during the financial year. It employs more than 110 staff. During the period the company secured a £3.25m investment from the Business Growth Fund, which was the fund’s first deal completed in the north west. Davies said the financial performance was in line with plans. “Since year-end we’ve had strong like-for-like sales across our stores and grown from six stores to ten,” he said. “We’ve got a store due to open in Holborn in March with a couple of others in the pipeline. As a company we’re well-funded and well positioned for expansion next year. For us as a company it’s very important that we open the right stores and don’t spread ourselves too thin. We’re looking at London and other key cities outside of the capital.”

First Propel Multi Club Conference of 2014 open to bookings: The first Propel Multi Club Conference of 2014, to be held on Thursday 13 March at the Lancaster London Hotel, Lancaster Gate, central London, is now open for bookings. Multi site pub, restaurant and foodservice companies can claim up to two free places each. E-mail jo.charity@propelinfo.com to reserve places.

Crowd-funding website raised £12.2m in 2013: Crowdcube, the crowd-funding website, has reported it raised £12.2 million in 2013 for 54 UK businesses, a 550% increase from 2012. A vote by 1,500 Crowdcube investors named Pizza Rossa as the “Best Start-up of 2013”, after it raised 57% more than its initial target of £280,000 in 17 days. It is the brainchild of Corrado Accardi, a recent MBA graduate of the London Business School. The company will create a chain of Italian style quick service pizzerias in London. The judges said: “Corrado really struck a chord with us, he was one of the most positive entrepreneurs that we have dealt with and we feel that his business will go far, as did all those investors who took a slice of the business in such a short time.” 

Domino’s partners Ford to launch car-order app: Domino’s Pizza has partnered with Ford Motor Company to launch the Easy Order platform for the pizza chain’s mobile app, which would allow customers to place orders hands-free from their cars through Ford’s voice-activated SYNC system. The restaurant company unveiled the platform yesterday at the 2014 Consumer Electronics Show in Las Vegas. The in-car capability is expected to be ready for the more than one million Ford cars equipped with the SYNC AppLink in-car system by the middle of 2014.

Former Publican editor joins BII: The BII has appointed former Publican editor-in-chief Caroline Nodder to the executive board to head up its membership and communication divisions. Nodder will join the pub trade membership association and qualification body in her new role on 13 January to oversee all public and government relations, events, membership services, business development for the organisation, as well as media, including BII Business. The directorship is a newly created role supporting BII CEO Tim Hulme’s vision for the organisation and enabling the BII to push ahead with its 2014 strategy.

Man jailed for 16 months for supplying Sky without commercial viewing agreement: A man has been jailed for 16 months for selling systems to pubs that allowed access to Sky Sports without a commercial viewing agreement. Michael Gearty, who pleaded guilty to fraud, was sentenced to 16 months imprisonment by Luton Crown Court on 17 December 2013, whilst co-defendant Steven Ellis received a 12 month suspended community order. The investigation into the supplier began after a Dreambox satellite decoder supplied by Gearty was found in a Nottingham pub by investigators working for Sky. Alison Dolan, deputy managing director at Sky Business, said: “This sentence should act as a wake-up call to those licensees who continue to listen to suppliers who tell them they can show Sky Sports via an alternative system and avoid prosecution.”

InnBrighton acquires sixth London pub as it targets London estate of 25: InnBrighton, the Brighton-based operator led by Gavin George and backed by Graphite Capital, has acquired its sixth London pub since entering the market in 2011. It has acquired the assignment of a free-of-tie lease on The Hundred Crows Rising in the Chapel Market area of Islington, owed by a private landlord. It has been known at various times as The Compasses or The Salmon & Compasses, only recently changing its name to The Hundred Crows Rising when its offer moved from late night entertainment to gastro pub. George said: “It is our intention to combine the urban coolness of The Crows with the vibrancy and history of The Salmon & Compasses. The pub is currently closed for refurbishment and will relaunch next month as The Joker of Penton Street, taking its inspiration from the country’s most famous Regency entertainer – Joseph Grimaldi – who lived in Penton Street and who regularly performed at nearby Sadlers Wells.” InnBrighton’s chairman Gary Pettet, who negotiated the acquisition, said: “The Hundred Crows Rising is the sixth acquisition InnBrighton has made in London in the last two years and gives us a significant presence outside of Brighton. The acquisition momentum is building as planned towards our target of a 25 strong estate in a London market that is proving to be very receptive to the InnBrighton style of pub.” Chris Bickle, of Davis Coffer Lyons, who acted for the vendor, added: “This is the fourth free-of-tie site InnBrighton has purchased through DCL since entering the London pub market in 2011 at The Britannia in Victoria Park, Hackney. The company has an excellent eye for attractive period venues in urban locations, which prove very popular with their target demographic.”

Ribble Valley Inns adds fifth site: The Lancashire-based pub operator Ribble Valley Inns has added the Nag’s Head, Haughton, Tarporley, Cheshire to its estate, extending the group’s portfolio to five. This is the company’s first venture into Cheshire with Ribble Valley in advanced negotiations on a second site in the county. The Nag’s Head will be closing for an extensive refurbishment and is due to reopen in early June. Wayne Chapman, chief executive of Ribble Valley Inns, said: “Expanding into Cheshire is part of our growth strategy and enabling more customers in different geographic areas to experience the Ribble Valley proposition. The refurbishment and refinement process of our existing properties, The Three Fishes and The Clog and Billycock have been extremely successfully encouraging this growth into Cheshire. Cheshire already has some fantastic dining pubs and we’re excited to be competing in such a buoyant market and finding great new Cheshire suppliers to work with.”

Simon French reiterates Domino’s ‘Buy’ recommendation: Panmure Gordon Leisure analyst Simon French has reiterated his ‘Buy’ ecommendation on Domino’s UK shares after yesterday’s trading update. He said: “Domino’s Pizza has reported 10.9% like-for-like sales growth in the UK for the 13 weeks to 29 December compared to our implied forecast of 1.2%. 50 new stores were opened in the UK during the year compared to our forecast of 45. In Quarter Four, Ireland like-for-like sales increased 7.6%, Switzerland 1.9% and Germany 4.6%. FY results are expected to be in line with market expectations (c£47.6m PBT) with UK and Ireland ahead of forecast but German losses greater due to later than expected transition to franchise (a process that is now almost complete). The group comments that the recruitment process for a new CEO is under way. We reiterate our ‘Buy’ recommendation and 553p target price.”

Busaba Eathai plans to double estate to 20: Busaba Eathai, the Thai restaurant chain founded by Alan Yau, is planning to double estate size to 20 restaurants within three years. Development director Joel Falconer told The Daily Telegraph: “We’re looking to develop three or four new sites [this year], focusing on Liverpool, Manchester, Leeds and Bristol.” The key challenge will be recruiting around 40 chef from Thailand. “We have at least four Thai chefs in every Busaba kitchen,” he said. “We can and do train our own chefs but when it comes to truly understanding the flavours and culture, there are some things you can’t teach. The visa language requirements mean that our chefs need a certified level of English. We’re actually having to coach people in Thailand to help them get over here.” 

Ashoka chain owner eyes sites in Glasgow and Inverness: Sanjay Majhu, owner of the Harlequin Leisure restaurants business, which runs the Ashoka chain, is in talks to buy a “sizable” outlet in Glasgow, in which he plans to open an Indian restaurant under a new brand. He is also planning to open a new restaurant in Inverness, under the Ashoka fascia, the largest and most popular Indian restaurant group in Europe. Majhu, who bought the business from the entrepreneur Charan Gill in 2005, said like-for-like sales fell 5% in December compared with the same period in 2012. He said the planned new venture in Glasgow was “in a very good location and it will not impact on any of our other restaurants.” Harlequin operates its restaurants through franchise agreements, and Majhu said: “I have put a lot of pressure on franchisees to up the ante. The customers know there’s an unconditional expectation of special offers. You are going to have to discount.” In Harlequin’s case this has included offering vouchers and doing two for the price of one deals. Majhu said a lot of sales were now coming through internet channels such as the Just Eat takeaway ordering service. Harlequin uses its Yes on Deals website to help generate sales. Majhu said leisure businesses had to respond to the power the internet gives consumers: “People expect things to be ordered quicker and with a discount.” In December, Harlequin announced like-for-like sales for the year to March 2013 down 25% on the preceding year, although Ebitda grew to £490,000 in the year, from £221,000 in the preceding year. The company owns the Ashoka and Ashoka Shak chains, with outlets in Glasgow, Edinburgh, Dundee and Livingston, the Green Chilli Cafe in Glasgow, and the Las Ramblas Spanish restaurant in Bearsden.

Starbucks and Welcome Break open drive-thru M-way coffee shop: Welcome Break has opened a drive-thru Starbucks coffee shop at a motorway service station in Warwickshire. The opening has created 12 new jobs at Warwick South services on the M40, between junctions 12 and 13, after service station bosses said there has been a surge in customer demand for drive-thrus. A Starbucks coffee kiosk has also been set up at Warwick North. Welcome Break’s chief executive, Rod McKie, said: “We’ve seen a real demand for more drive-thrus, so are pleased to meet our customers’ needs with the opening of this new store at Warwick South.”

Surrey village turns down Costa Coffee application: A round of applause greeted councillors’ decision to turn down the application for a Costa Coffee in the village of Hinchley Wood, Surrey (population: 5,068). Elmbridge Council blocked the coffee chain’s plans to open in Station Approach with nine councillors refusing the plans and two abstaining from the vote. On top of parking issues, councillors said they were worried about the knock-on effect of litter, should the application be granted, and the opening hours, which were proposed to be between 6.30am and 6.30pm.

Barnsley real ale brewery to introduce keg beer: The Acorn Brewery in Barnsley, which currently produces more than 5,000 barrels of ale a year, has announced plans to introduce keg beer to its line-up. The brewery, set up in 2003 by brewer David Hughes, his wife Judi, now has a turnover of £1.2m and employs 12 people. Brewery manager David Broadhead said cask ales account for 90% of Acorn’s production and would always be its “core business”. However, he said, “we recognise the need to broaden our customer base in order to expand, and boosting sales of bottled beer and developing a new product in keg beer are key objectives for 2014.” Acorn plans to double production of bottled beer over the next 12 months, both for sale in the UK and export abroad.

Cocktail bar seeks second Northern Quarter outlet: The owners of the Liquorice cocktail bar off King Street in Manchester have submitted a change of use application to Manchester Council to change a former wholesale fashion store on nearby Lever Street in the city’s Northern Quarter into a cocktail bar. The applicant, Mark Whyte, said the bar would provide a “unique list of drinks and cocktails using fresh fruit, garden herbs, botanicals and premium spirits”. Whyte said he aimed to provide “something different” to the existing bars in the area. A total of seven full-time and ten part-time jobs would be created.

Flying Kiwi reports reduced profit: The award-winning Norfolk gastro-pub operator Flying Kiwi Inns, led by New Zealander Chris Coubrough, has reported pre-tax profit of £122,000 on turnover of £4.97m in the year to 31 March 2013. Pre-tax profit was higher at £305,000 on turnover of £5.26m the year before. A Companies House filing reports that the freehold of the Crown Hotel at Rudham and the leasehold King’s Head at Letheringsett were transferred to a new company, Pickled Inns, a part of a demerger in July last year.

Douglas Jack raises Greene King price target by 50p: Numis Securities leisure analyst Douglas Jack has raised his price target for Greene King shares by 50p to 975p ahead of the company’s third-quarter update next Monday. He said: “We expect trading to have strengthened slightly over the latest six weeks, aided by an improved trading backdrop, such that the risk to forecasts is on the upside. Managed like-for-like sales rose 3.5% over the first 30 weeks. We believe trading is likely to remain ahead of our 3.1% full year assumption due to: food (+4.5% in H1) and accommodation (+5.8%) outperforming drink (+2.6%); Christmas bookings having been up 13%; and comps becoming easier (H1 4.3%; Q3 2.6%; Q4 -1.4%). Tenanted like-for-like ebitda rose 1.7% with average ebitda up 5.2% in H1 (our full year assumption is 4.5%), with drink volumes boosted by favourable weather. After 28 weeks, average ebitda growth had improved to 5.6%, supported by: higher investment; new agreements; and an increasing pace of tail-end disposals (125 targeted in 2014E, versus 97 in 2013).The managed estate added 22 sites in H1 (11 acquired/opened; 11 transfers in), with a further 25 expected in H2. 2015E guidance has been raised from 49 to 62 new sites. Although we view the 10.3x EV/Ebitda valuation as fair, we are upgrading our target price to 975p to reflect underlying growth and upgrade risk (trading should be ahead after Q3 with easy, snow-affected comps lying ahead in Q4).”

Spinningfields restaurateurs to open two more venues: Karina and James Hitchen, the couple behind two successful restaurants in the Spinningfields development in Manchester, the New York-inspired Neighbourhood Restaurant & Bar, which has become a favourite with the city’s celebrities, and the Texan-inspired Southern Eleven, have announced plans for two more outlets. The first will be a “secret speakeasy” bar to open on Spinningfields in March. This will be followed by a new American brasserie at an as yet unnamed location in Manchester, which is due to open in September. Southern Eleven and Neighbourhood Restaurant & Bar are believed to be on target to reach £5m in annual gross sales trading this year The couple are expanding Southern Eleven into the Brooks Brothers unit that it backs onto on The Avenue, investing in a development kitchen and hiring a new executive chef to work on the new menus and concepts, as well as opening a central point for smoking meat. Karina told the Manchester Evening News: “We like to do individual concepts to keep them interesting and innovative for our customers so we don’t want to keep repeating the same ideas. There are so many exciting concepts and ideas out there to be developed. There is a wealth of food and drink establishments in Manchester city centre with some companies having launched more than four last year alone. We have been fortunate to have a close working relationship with Allied London, who develop the Spinningfields area. They believed in us and Neighbourhood’s concept so much that they signed us as a flagship unit to attract other business to the area-which has happened.”

Nando’s confirmed for York shopping centre: Nando’s has been confirmed as the latest addition to a new £90 million shopping complex on the edge of York. The firm will occupy one of the units at the Vangarde Shopping Park at Monks Cross. The firm already has a branch in High Ousegate in the city centre. Nando’s will join chains including Giraffe, Frankie & Benny’s, Prezzo and Costa Coffee at the development, which has unlocked £13.75m of funding for the city’s neighbouring community stadium and will create 1,000 new jobs. Richard France, managing director of Vangarde developer Oakgate Group, which is part-owned by Caddick Group, said: “To attract Nando’s to the restaurant line-up adds another dimension to the already exciting food offer. York is maintaining its position as a key regional shopping destination and Vangarde can boast one of the best retail line-ups in the UK. We’ve worked hard to create an exciting mix of restaurants and retail units and we’re looking forward to opening to the public in April.”

Michael Deane to invest £500,000 in restaurant expansion: The multi-site Northern Ireland restaurant operator Michael Deane is to invest £500,000 in expanding Deanes on Howard Street in Belfast city centre. The investment will create 30 jobs, bringing the workforce to 150. New and extended restaurants will include a seafood bar, a grill and the Eipic Restaurant. Deane said: “Deanes has had a successful few years and I am delighted to be in a position to invest further, not just in our business but in our city. Despite recent setbacks, Belfast remains vibrant and our customers have continued to endorse our passionate belief in it as a city to be enjoyed by both local people and tourists.” A champagne bar is to open as part of the expansion while the seafood bar will be extended to seat 100. An Argentinian grill will focus on meat. The restaurants will open next month. Deane also operates Deanes Deli and Vin Cafe, Deanes at Queens and Deane and Decano in Belfast.

Jamaica Inn in Cornwall and sister hotel on market for £2.9m: The Jamaica Inn, near Bodmin, Cornwall, and its sister hotel the White Hart in Okehampton are on the market through agent Christie + Co for £2m and £900,000 respectively. The Jamaica Inn was immortalised in Daphne du Maurier’s eponymous best-selling novel, and once owned by the thriller-writer Alistair MacLean. It is now offered for sale by John and Wendy Watts, the owners for the past 40 years, who are looking to retire. Matthew Smith, director of Christie + Co in Exeter, said: “It’s rare when just one hotel of such local historical significance is brought to the market, but in Jamaica Inn and the White Hart Hotel we have two excellent opportunities with a renowned past, and which have traded well under the auspices of the current owners. The family which has owned Jamaica Inn since 1973, are now looking to retire.”

Pieminister to take space at Smithfield development: The regeneration company Urban Splash has announced that Pieminister has taken space at its Smithfield Buildings in Manchester. The gourmet food brand has confirmed that it will take a ground floor 728 sq ft unit at the scheme which is based in Manchester’s Northern Quarter. It will add to Pieminister’s growing portfolio of retail outlets, which include Bristol, London and Amsterdam. Pieminister’s Graham White said: “We are thrilled to have anchored the brand in Manchester. The Northern Quarter is absolutely the right place for Pieminister and the Smithfield Building with its existing culinary mix is the perfect context.”

Hungry Horse eyes Hadleigh development: Greene King’s Hungry Horse chain has expressed interest in taking on a plan to build a restaurant on the site of an empty community centre in Hadleigh, Essex. Plans by the Castle Point Regeneration Partnership to revitalise the John H Burrows Recreational Ground would see Hadleigh Hall in Rectory Road, a community venue that has fallen into disrepair after standing empty for over two years, demolished and replaced by a new restaurant, improved sports changing facilities and a 180-space car park. Hungry Horse has expressed an interest in taking on the project and opening up a new eatery on the 1.15 acre site.

Developers confident over restaurant space after cinema deal struck: A deal has been signed for a new cinema in the proposed Littleton Centre in Walsall, leading developers to say they were confident of filling the restaurant space at the development. Tom Wilcox, development director of Cordwell Property Group, the company behind the £12m Littleton Centre, said after the deal for a nine-screen Vue cinema was announced: “We are obviously delighted to finally get Vue signed up. In addition to this we have nearly half of our ground floor restaurant space under offer, in legals, and we envisage the remaining units will see strong take up following this positive news.” The cinema will be the first in Walsall for 20 years. Work on the development is due to begin at Easter, and be completed in 2015.

New Moon Pub Company to open Beef and Pudding: New Moon Pub Company will re-open the Crown in Manchester city centre as the Beef and Pudding in mid-March. Co-founder Dave Mooney said: “The Crown will be unrecognisable after we’ve finished with it. It’s going to be called the Beef and Pudding. This is a reference to a cartoon from the Peterloo Massacre of 1819, with one of the militia saying, ‘We’re sending the people back to their beef and pudding’. In our pub we’ll be bringing the beef and pudding back to the people in the old Crown pub. Our chef is Nic Duncan. She used to work at Parlour on Beech Road, Chorlton, and is Harvey Nicks- trained. She’ll be delivering a frequently changing menu of good quality, British food. Of course we’ll have a beef pudding, one with our own horseradish. There’ll also be fish and chips and a signature dish of steak with black-eyed peas. Other menu items will include crispy tripe with Lancashire-shaved pickled onions.”

Denny’s seeks first New York City site: Denny’s, the US restaurant chain looking for UK franchisees, is planning to open its first New York City location in a luxury apartment building in Manhattan after defeating a lawsuit filed by the condominium board of 150 Nassau Street. Residents of the building feared that the 24-hour diner and pancake house would attract college students because of an alcohol licence that is being sought. A lawsuit filed by the condo board – an often-powerful group of residents – has been discontinued.

Yummy reports 30% like-for-like rise in December: The Yummy Pub Co, the four-site multiple founded by Anthony Pender, Jason Rowlands and Tim Foster has reported like-for-likes up 30.2% over the month of December, with increases at all four outlets despite severe weather conditions and flooding at two sites over the week of Christmas. At the same time, changes at the Somers Town Coffee House in North London have boosted turnover at the site past £60,000 a week. The company’s two country pubs, The Wiremill and The Grove Ferry, did not escape the ferocious weather of the past fortnight. Foster said: “The beginning of the year has been quite a challenge, we now have a new ‘non-purpose-built lake’ instead of a garden at The Grove and 30 tonnes of fallen trees to season into firewood. Our lovely lakeside pods at the Wiremill have taken a total battering, but we’re surviving.” The company has secured a fifth site, but is keeping the details under wraps for now. Foster said: “It’s top secret on location, name, who with or not with, when, how and why, but she’s a beauty.” At the same time, Yummy has a new operations director. Foster said: “Matt Ward has started 2014 as Yummy operations director and will end 2014 owning a share of his own Yummy pub with us. He is stepping up from a site manager to director to co-owner in one swift, painless move – impressive stuff for a 24-year-old.” At the Somers Town Coffee House, Pender said: “The introduction of the Cosy Kettle cocktail bar allowed guests to remain in the venue and increase SPH both during the day and late into the evening, unlike the previous year where guests had to leave because of lack of space and table turn times. With the completion of all three trading levels at the site, we were able to deliver record days and consistently reached a turnover of in excess of £60,000 per week.” The development also incorporated Yummy’s first purpose-built office and reception, which was used to drive events that in one day alone generated bookings worth £30,000 during November. Pender said the team from Yummy had taken lessons from the success of Christmas trading, with internal processes that were now delivering a food margin of 71% over the last quarter across three of the sites and had worked closely with the company’s epos provider to generate more insightful reports and controls around stock and staffing levels. For the past six months Yummy has also been developing a fully integrated online platform for guests and advocates to the brand giving the company’s already established database of more than 25,000 individuals exclusive opportunities to what Pender and Foster recently called “accessible premium events”. Advocates will now be able to buy tickets to supper clubs and events in advance as well as see current menus, order meals online up to an hour prior to arrival at the venue and book exclusive weekend offers in the Country Inns. 

Losses climb 27% at A to Z Restaurants: Losses have widened in the most recent financial year at A to Z Restaurants, operator of Memories of China and Zafferano. Turnover dropped 12% to £9.16m in the year to 31 March from £10.4m the year before. Losses before tax were up 27% to £1.11m from £874,000 the year before. The company said: “The group operates in a highly competitive market and given recent economic conditions in the restaurant industry, the group has been subject to greater pressures during the year. One loss-making restaurants has been closed. New management has been introduced and has implemented a significant re-organisation of the head office function to reduce costs.”

Individual Restaurant Company sees losses fall 37%: The operator of the Piccolino chain, Individual Restaurant Company, has reported reduced losses in the year to 31 March. Turnover, reported through parent company W2D2, rose 32% to £55.27m from £41.97m the year before. Losses before tax were £2.3m, down 37% from £3.67m the year before. The company signed a new five-year £11m facility with Nat West Bank in August last year. Loan repayments under the facility are due to start in July 2016. The wage to sales ratio was reduced to 38% in 2013 from 41% the year before. Gross margin was 71% and the overheads to sales percentage was reduced to 73% from 75% the year before.