Ed’s Easy Diner secures increased facility from NatWest to fund roll-out to 50 restaurants: Ed’s Easy Diner, operator of 31 themed 1950’s American diners, has secured a £9.5m increase to its existing bank facilities. This new funding arrangement with NatWest will assist in financing the next stage of rapid growth to 50 restaurants. A new term loan facility of £14 million has been agreed and signed, £9.5 million more than the previous facility. This, together with the substantial cash generated by the business, will finance the company’s targeted future expansion plans to the end of 2015. Ed’s has been accelerating the roll-out of its diners since the beginning of this year, and currently has 31 restaurants, ten of which have opened in the financial year to the end of September 2014. The site pipeline is ‘well-developed for next year’ with hopes to open around 20 restaurants over the next 15 months. Trading has been strong over the past few months, both in existing and newly-opened stores underpinning management’s confidence that Ed’s generates excellent returns from a wider range of locations than initially envisaged. Chairman Stephen Greene said: “We are delighted with NatWest’s support of our strategy and future expansion plans. We have a proven formula, which is delivering profits and generating cash. This, together with a focussed and experienced management team, will lead the Ed’s brand to further success.” Mark Flett, relationship director at NatWest, said: “We are delighted to support Ed’s as the business embarks on a series of expansion plans to support its business aspirations.”

ALMR submits evidence showing pay is moving above National Minimum Wage: The Association of Licensed Multiple Retailers (ALMR) has submitted detailed evidence to the Low Pay Commission ahead of its recommendations for 2015 rates. A spokesman for the ALMR said: “We will also be representing the sector in giving oral evidence to the Commission in November arguing that businesses need a more supportive employment tax regime – PAYE and NIC cuts – to allow them to increase their investment in wages in a sustainable way. Political aspirations remain to restore the level of the NMW in real terms, which could see renewed pressure for a £7 NMW – The Labour Party has committed to an £8 NMW by 2020. The ALMR’s 2014 Employment Survey is helpful in supporting this political narrative. It shows that, for the first time in two years, average bar wages are beginning to pull away from the NMW base rate. This year, 46% of respondents were paying average hourly bar rates in excess of the headline NMW rate and 38% had an average rate at NMW levels. The mean rate of pay was £6.75 and the mode was £7.33.”

Food-on-the-go show attracts record number of attendees: Food-on-the-go-exhibition Lunch! has attracted a record number of attendees – 6,215. In its seventh year, the show featured almost 300 exhibiting companies and enjoyed a 5% increase in total unique attendees – the number of visitors in 2013 was 5,924 and visitor numbers are up 44% on 2012. Cafes, coffee houses, sandwich shops, and tea rooms were by far the show’s biggest group of attendees (25%), followed by contract caterers, distributors and wholesalers, and supermarket/multiple at 16%, 13% and 10% respectively. 

Roger Whiteside – business rates need to be more flexible: Greggs chief executive Roger Whiteside, who previously led Punch Taverns, has argued that business rates need to be more flexible. In an interview in The Times, he stated: “The ratings system isn’t responsive to changes in the business conditions of shops paying the rent. There needs to be something allowing rates to fall if sales fall – and rates to rise if sales rise.”

McDonald’s in Australia trials gourmet bespoke format: McDonald’s in Australia has begun a trial that offers a ‘create your own gourmet burger’ option with 19 different fillings served on wooden platters with a side of fries in a basket, plus table service. Customers can order their customised burgers on a digital touch-screen menu, which offers ‘never-seen before’ choices such as guacamole, tortilla chips and a range of other sauces. McDonald’s chief executive Andrew Gregory told The Australian: “We will build another three of these before the end of the year and test and learn and listen to our customers and work out what works best.” Corporate communications manager Chris Grant told The Daily Telegraph that the ‘foodie revolution’ prompted the trial which the company hoped would appeal to those who are seeking something ‘a little more sophisticated’ – particularly parents. The company is trialing the menu in Castle Hill, northwestern Sydney, before it’s expanded to other restaurants. There are about 930 McDonald’s restaurants across Australia.

Humphreys appointed to SIBA executive: Robert Humphreys has been appointed as a non-executive director at the Society of Independent Brewers (SIBA). Humphreys, formerly honorary secretary of the All Party Parliamentary Beer Group, will sit on the SIBA Executive, created earlier this year as part of an organisational restructure which unified SIBA’s trade association and commercial arms. SIBA managing director Mike Benner said: “We’re delighted to have Robert on board. His wealth of experience within the drinks and hospitality industry make him an invaluable addition to the SIBA Executive team and we are looking forward to working with him to realise SIBA’s vision of building the future of British beer.” Humphreys said: “I have watched with great pleasure SIBA’s growth from a small band of founding microbrewers in 1980, to the influential and respected trade body it is today. While much has changed in those 30+ years, SIBA’s driving force is still its passion for beer and this, combined with its new structure, put it in prime position to represent and develop the British brewing industry.”

Sunday Telegraph – Kaye family aims to unite Prezzo, Ask Italian and Zizzi: The Sunday Telegraph has claimed the Kaye family would like to unite the Prezzo business, where the family own a collective 58% with Ask Italian and Zizzi, which are owned by Gondola. If successful, the combined entity would run 485 Italian restaurants – 245 within Prezzo plus 110 Ask Italian sites and 130 Zizzis. The newspaper has claimed the Kaye family has held talks with private equity firms Advent and TPG to bid for AIM-listed Prezzo as well as Zizzi and Ask, both of which were founded by family members. Last week, Prezzo told the stock market that it had received proposals from TPG and Advent to buy the business on a nil-premium basis – some have suggested this means the move already has the family’s backing. Prezzo has no debt, which means its balance sheet could be used to fund expansion plans.

Harry Ramsden’s reports 9.8% like-for-like sales growth in Third Quarter: Harry Ramsden’s has reported a 9.8% increase in like-for-like sales in its Third Quarter to the end of September. The company credits the sales growth to an enhanced proposition and a £2m investment, which resulted in the refurbishment of a number of seaside sites including Blackpool, Great Yarmouth and Eastbourne. Commercial franchising agreements are now in place to deliver over 140 sites over the next ten years. The period also saw the first openings under the new franchise strategy in Worthing (restaurant) and Falkirk (traditional local) with reports of higher than expected levels of trade. Joe Teixeira, chief executive of Harry Ramsden’s, said: “Group-wide, our outlets are trading ahead of expectations, as customers re-engage with, or for the first time, are introduced to our brand which has been revitalised over the past two years.”

Five London pubs offered to let on a nil premium basis: Property management company Golfrate has hired Restaurant Property to find operators for five prominent pubs located in south and north London on new leases of 15-25 years and a nil premium basis. The sites are the 4,159 square foot Lost Society, 697 Wandsworth Road, Clapham SW8, the 2,300 square foot Peacock Bar, 148 Falcon Road, Battersea, the 2,788 square foot Surprise Public House, 110 Vauxhall Bridge Road, Victoria SW1, the 3,000 square foot Filthy McNasties, 68 Amwell Street, Islington, EC1 and the 4,400 square foot The Bailey, 81 Holloway Road, N7. The Lost Society close to Wandsworth train station is arranged over ground, first and second floors and is available on a rent in excess of £100,000 per year. The Peacock consists of a ground floor and basement on a prominent corner position, a short walk from Clapham Junction. The agent is seeking offers on the rent of in excess of £50,000 per year. The Surprise also on a prominent corner position, consists of ground floor and basement and is located between Victoria and Pimlico tube stations. Offers of a rent in excess of £90,000 per year are being sought. Filthy McNasties is not far from Angel Station and is close to a Jamie’s Italian and The Old Red Lion Theatre Pub. It consists of a ground floor and basement, on a prominent corner location. Restaurant Property is seeking a rent in excess of £70,000 per year. The Bailey, again on a prominent corner location, is metres away from Highbury and Islington Station. The property, spread over the ground floor and basement, is available on a rent in excess of £50,000 per year. Restaurant Property sales director Mark Calder said: “These pubs, if taken as a portfolio, would be a great springboard to provide geographical reach and grow a brand, given their great locations. But we are also already aware of interest in single assets from local operators who are seeking to expand, in both north and south London.”

Wetherspoon shares fizz up after HSBC note: Shares in JD Wetherspoon fizzed up at the end of last week after a positive note on the company by HSBC. The stock rose 40p to 820p, a gain of 5% after HSBC raised its rating on the company to ‘neutral’ from ‘underweight’. Analyst Joe Thomas, who has just started covering the stock, also lifted the target price from 730p to 850p, pointing to a ‘strong’ and ‘robust’ sales performance. “Management thinks the 6.3% like-for-like summer sales performance may reflect its limited number of beer gardens, meaning it wasn’t hit by the bad August weather as much as its peers,” he said. “However, we think it could just be outperforming more generally.” Thomas said declining margins should not be a problem ‘if sales rise by enough to compensate’. He added: “We see potential for some positive momentum.”

Nick Batram – an improved offer by Greene King for Spirit can be justified: Peel Hunt analyst Nick Batram as argued that an improved offer by Greene King for Spirit can be justified. He said: “Final results are due to be released (by Spirit) a day after Greene King’s ‘put up or shut up’ deadline. The tone of the results statement and narrative will undoubtedly be flavoured by what transpires on the bid front. In terms of the underlying business, Spirit produced one of the sector’s better recent trading statements both in managed and leased. There was also encouraging signs that the acquisition programme is gaining momentum post the financial restructuring. Current trading should also be positive given the dry September. The shares have now reached our fair value (pre-bid) target price and the risk/reward is now more evenly balanced. In order to persuade investors Greene King is likely to have to offer 110p-120p with a cash component – from a multiple perspective we believe this can be justified.”

Tokyo Industries’ Leeds expansion plan opposed by university and police: A plan by nightclub company Tokyo Industries, led by Aaron Mellor, to expand Leeds nightclub Halo are being opposed by the nearby university and police. The company wants to extend the opening hours from 3.30am to 6am and add two outdoor bars. Police fear it could further aggravate alcohol-fuelled anti-social behaviour, noise nuisance and criminal damage. The University of Leeds, which is spending £27.5 million on the new 24-hour Laidlaw Library next door to the nightclub, is also opposing the plans over fears that rowdy clubbers could disturb students wanting to study.

Cote secures Winchester site: Cote Brasserie has secured a site in Winchester converting a former Moss Bros site in Winchester High Street. The refurbishment, which is expected to cost close to £1m, will be completed for an opening by late January. The restaurant will seat around 130 customers. Harald Samúelsson, joint managing director, said: “ We have long thought that Winchester would be a perfect setting for Cote as it fits with our ethos of offering high-quality food and service at great value prices.” The chain is also opening a new site in Dorchester – its first in Dorset.

Bill’s beats Taco Bell to Colchester site: Bill’s has beaten Taco Bell to secure a site in Colchester’s Angel Court, which is undergoing a major redevelopment by owners City and Country. Nick Dawson, general manager for Taco Bell UK and Europe, said he was “disappointed” the deal at Angel Court fell through. He added: “It was a case of, after lengthy discussions and negotiations between our franchisee and the landlord, it didn’t pan out in our favour. We were really keen to open at that site and remain keen on opening a site in Colchester.”

Costa Coffee signs deals on six retail parks: Costa Coffee has signed deals to expand at six British Land-owned retail parks from Dumfries to Swindon. Terrace units totalling almost 11,000 sq ft have been taken by the cafe operator at Mayflower Retail Park in Basildon, the Orbital Shopping Park in Swindon and the Valentine Retail Park in Lincoln. A drive thru is now open at Cuckoo Bridge Retail Park in Dumfries, and a pod has been installed at the Lion Retail Park in Woking. The chain has also expanded into an adjacent unit to the one it already occupies at Forster Square Retail Park in Bradford. John Maddison, head of retail park asset management for British Land, said: “These additions help us deliver a broader offer to customers, enhancing the appeal of our assets, and helping to ensure they remain locally preferred.”

Sticky Walnut seeks £100,000 via Kickstarter to open second venue: The award-winning Cheshire restaurant Sticky Walnut has launched an appeal on the crowdfunding website Kickstarter to raise £100,000 to open a second venue. Sticky Walnut, in Hoole, Chester, was started by the chef Gary Usher in January 2011 and was awarded the title of AA Restaurant of the Year 2014-15 this year. Last year it won the “best UK restaurant menu” title in the Cateys awards. On the restaurant’s Kickstarter page, Usher writes: “We now want to expand and open a sister restaurant to Sticky, Burnt Truffle. Even when you are successful it is almost impossible to raise extra finance for such a project, in this day and age, in the traditional way – from banks. We have now been looking at potential second sites, and have found three potential locations, but in order to secure one we need the funds in place. The bank and all their various forms make it such a painful lengthy process (pain level eight) that by the time a decision is made by the bankers the lease on Sticky will have run out – even before Burnt Truffle sees the light of day. Sites are really, really hard to find. We already have our eye on a few places but even when we have found ‘the one’ and made a successful offer, the legal process can be quite lengthy. Without funds in place we risk losing the site once we confirm our interest.” Usher is looking to raise £100,000 by 4 November. So far 160 backers have pledged £22,000. Rewards for backers range from having their name added to the Founders Wall when the new restaurant is built to a pork belly masterclass and three-course meal for up to 50 people, for pledging £5,000.

Bradford Brewery receives £50,000 funding boost: Bradford Brewery has received another major financial boost – a £50,000 loan from Bradford-based lender Business Enterprise Fund (BEF). This additional funding stream will improve cashflow as renovation work begins at the recently-acquired site on Westgate, Bradford. The £400,000 development will see the conversion of the disused Shaw’s Moisture Meters factory into a 10BBL brewery with an initial production capacity of 16,000 pints per week. The brewery and attached Brewfactory pub, due to open in Westgate later this year, already has Bradford City Centre Growth Zone funding and the support of former Dragon’s Den star, Doug Richards. Managing director of Bradford Brewery Matthew Halliday said: “The Growth Zone grant underpins the building work and also provides capital for the purchase of our brew kit. But this new loan facility will allow us to grow much more quickly and forge ahead with the recruitment of our full staff team. The cash will give us additional security in our first years – a time when businesses most often struggle.”

Be At One secures Oxford site: Cocktail bar chain Be At One, backed by Piper Private Equity, has secured a new venue on 15 St Clement’s Street in Oxford through agent Fleurets, which was acting for Mike Saxby, a large Oxfordshire property owner. The premises had formerly been run as a nightclub and the current lessee wished to surrender his lease and move to China. Fleurets marketed the opportunity to acquire a new lease and after competitive bidding the premises have been let to Be At One who intends to open in January. Steve Locke, director at Be At One, said: “We are really excited about this new venue, just in the heart of Oxford. The venue’s proximity to the universities, students and local workers, we see Be At One quickly becoming an institution for all the people that appreciate great cocktails in Oxford.” The venue in Oxford is Be At One’s 24th site.

‘Robot microbrewery’ company secures £1m in funding: Brewbot, the Northern Ireland company planning to market £1,500 all-in-one “craft beer” microbreweries controlled by a smartphone app, has raised more than £1m in funding. The Brewbot machine, which will be marketed by parent company Cargo at both home-brewers and bar/retail buyers, allows users to brew 20 litres of beer in a wide range of flavours and styles. The machine takes care of the many factors that can affect the taste of a beer, such as temperature, ingredient measurements, brewing duration, and the brew’s volume. Everything is controlled via Brewbot’s smartphone app, which also shows all the ingredients needed for each batch. The cost of the final beer is around 78p a litre. The Brewbot machine will even print custom labels to place onto bottles. The maker has just raised $1.5m in a round of funding concentrated on the United States, which, together with a £150,000 grant from techstart NI, comes to £1.09m. Cargo hopes to have the first completed units shipping in May next year.

Man pleads not guilty to starting fire at former Majestyk nightclub: A man has pleaded not guilty to starting a fire at the former Majestyk nightclub in Leeds. Stuart Jefferson, 32, appeared at Leeds Magistrates’ Court charged with arson. He was initially granted unconditional bail but then remanded in custody following an appeal by the prosecution. The site, which began as the Majestic cinema and was later a nightclub run by Luminar, was recently refurbished by its current owner, Rushbond, with a view to it re-opening as a live music venue. A well-known operator was close to signing up to occupy the site prior to the fire. The roof has partially collapsed but the “iconic” Grade II listed building has been saved.

McDonald’s franchisee Carl Room adds to portfolio: McDonald’s franchisee Carl Room, who has been running restaurants for the company in Oxford, Botley, Abingdon and Headington since 2002, is moving to run restaurants in and around Swindon on the retirement of fellow franchisee Paul Booth after 14 years. Room will now be running nine restaurants for McDonald’s, after the opening a new drive-through venue in Bridgemead, Swindon. Room said: “Opening a new site will be a new challenge for me. It’s a restaurant of the future. There will be loads of new technology in there, which is how the restaurants are being kitted out now. Since being a franchisee I haven’t opened a new one before. We struggled to find sites in Oxford.” Room began working for McDonald’s as a crew member aged 16, and at one time Booth was his boss. He said his move had “all been brought about by Paul. He decided it was time for him to leave and it was McDonald’s who came to me and asked if I wanted to expand my business and move areas. It was a no brainer for me. I’m coming into a well-established franchise. If I had to start again from scratch I would stay where I am, but because Paul has such a good structure, it made it an easy decision.” 

BrewDog to pay Living Wage, promises staff PHI: BrewDog, the Scottish brewer and bar operator, has announced that it has become a Living Wage employer, at the same time promising all full-time BrewDog “crew members” private health insurance from 1 January. The UK Living Wage for outside London, as calculated by the Living Wage Foundation, is currently £7.65 an hour, while the London Living Wage is £8.80 an hour. BrewDog’s co-founder James Watt said on a statement on the company’s blog: “Today at BrewDog HQ we are celebrating our crew. We are proud to be a company full of committed, enthusiastic and hard-working folk. Over the past few months, I have worked closely with the directors, senior management and people department at BrewDog to review the care and attention BrewDog pays its employees, focusing particular attention to the extra benefits our crew receive as a perk of the job, as well as our pay scale for hourly-paid employees. As of 1 October 2014, BrewDog is a Living Wage employer. This will also have a positive knock-on effect on all hourly paid positions, whether they are in our bars or at the brewery.” Watt said that in addition all BrewDog employees who have achieved the Cicerone Certified Beer Server or Certified Cicerone qualification, which the company funds for all staff who want to sit the exam, also receive an additional pay perk on top of the basic hourly rate for the position they hold. He said: “Becoming a Living Wage employer will cost us an extra £1m in 2015 alone and an extra £10m over the next five years as we add more new faces to our teams. We see this as a hugely important investment in ensuring the future of and recognising the importance of our team, which is our most valuable asset as a business.” Other companies in the hospitality sector offering the Living Wage minimum include Adnams and Faucet Inn.

Sevenoaks residents appeal to Nando’s to open: More than 150 people have signed a petition to bring a Nando’s to Sevenoaks. The campaign was started by town resident Fraser Munro, who had hoped the brand would open in the unit soon-to-be-vacated by the Marks & Spencer food hall. But his hopes were dashed after it was revealed discounter Poundworld will be taking over the site. Those signing the petition include Sarah Moir-Singh from Sevenoaks, who said in its support: “My husband, young daughter and I love Nando’s and currently it is a 25 minute drive to the nearest Nando’s. There is a big captive and quite wealthy market in Sevenoaks for a Nando’s.”

Red’s True Barbecue launches express menu: Barbecue chain Red’s True Barbecue is launching a new express menu to capitalise on consumers looking for a smaller, quick eat at lunchtime. Inspired by the company’s most recent road trip to Texas, six new dishes will feature on the menu. Hero items include the Texas fold’em, a slice of white bread layered with slaw, pit beans, crushed nachos and a St. Louis rib and the hot mess, a salt-crusted sweet potato topped with smoked black Angus brisket chili, grated cheese, peppered bacon, chipotle sour cream, fresh red chili, spring onions, and a lime wedge. All include a bottomless soft drink. Called Now Safe For Work (NSFW) Express Lunch and priced at £6.95. The smokehouse brand aims to attract a city centre worker audience who are price sensitive and conscious of portion sizes. The menu will run across its sites in Leeds, Headingley and Manchester. Scott Munro, co-founder of Red’s, said: “Besides drinking great bourbon, our annual Pilgrimage to the States provides invaluable research, insight and ideas for our business. Our last trip in 2013 helped uncover the now famous Red’s Donut Burger, which has gone on to sell more than 100,000 and counting, so we’re confident the NSFW Express Lunch menu will captivate our believers and drive increased sales during lunchtime.” The brand is supporting the launch with a random act of kindness promotion called The Hand Of Red, giving customers the chance to win their lunch for free. It will be promoted in-restaurant, through social media and radio. The brand will open its fourth site in Nottingham in January 2015, and has earmarked a further three openings during the year.

Douglas Jack – SSP shares ready for take-off: Numis Securities leisure analyst Douglas Jack has produced his first recommendation on the shares of transport hub foodservice specialist SSP, issuing an ‘Add’ note and a Price Target of 300p. He said: “In our view, SSP’s valuation is justified by annual expectations of c.0.4x net debt/Ebitda reduction and 16% earnings growth, with potential for forecast upgrades. SSP is the largest operator in most of its chosen markets. For example, three-quarters of SSP’s railway station revenue is generated in the UK, where rail passenger volumes (PAX) grew by 5.7% last year. Globally, air passenger volumes rose by 4.5% last year, driven by emerging markets, and Asia Pacific in particular, which SSP is increasing its exposure to. SSP should now be capable of 1%+ net contract growth (adding 4%+ and not retaining 3% pa), with growth in US and Asia more than offsetting possible losses in mainland Europe. The priority is to target expansion in the 40% of sites with only one-to-two units, thereby driving up cost efficiency. We forecast like-for-like sales averaging c.3% pa, although 4% should be achievable if global GDP and PAX forecasts are accurate, in addition to which self-help initiatives should narrow SSP’s like-for-like volume gap. We estimate that 1% of extra like-for-like sales should boost PBT by 6% if volume-led and by 20% if price-led (beyond covering higher costs). Although SSP’s valuation appears to be full, we believe the company is strongly positioned in growing markets with barriers to new competitor entry. Its high operational gearing can work both ways, but the trend in global GDP growth, PAX, combined with self-help initiatives leaves forecast risk on the upside, in our view.”

Amber Taverns reopens George & Dragon in Cheadle after £450,000 makeover: Amber Taverns has re-opened the historic George & Dragon in Cheadle, Cheshire, after a £450,000 refurbishment programme to restore the Grade II listed building, which had been shut for several years. The Warrington-based specialist Innex Design was briefed to restore, extend and refurbish it into a contemporary/traditional leisure destination, which paid tribute to the heritage of the site. As well as exposed brickwork, booths, snugs, low lighting and open fires, a new external seating area to the rear of the pub includes an all-weather television. Mike Atkinson of Innex Design said: “This old coaching inn was so sad in its former state – it was an honour to bring it back to life. By using high quality furnishings and creating a number of areas both indoor and out, we’ve delivered a large stylish pub that will serve its community for many years to come.”

Left-wing think tank plans chain of cafe-bars: The Common Weal, a think tank project set up to achieve “a healthier, wealthier and more equal Scotland”, has announced plans for a string of cafe-bars and a new media hub to meet what it sees as the public appetite for progressive politics seen in the Scottish independence referendum, and channel it into further grass-roots campaigning. The left-wing project, which campaigns for an independent Scotland with Nordic-style social policies, aims to open its first outlet in Glasgow before Christmas. The aim of the cafes is to combine organising and socialising, and bring together people who want to pursue political change despite the No vote. Common Weal is also launching a social media website, CommonSpace, to provide an alternative TV service, a debating space, a policy library, and a contact point for activists. The Common Weal board has agreed to fund the first cafe-bar through a business loan, with CommonSpace funded through crowd-sourcing. Future cafes, or “Commons”, could also be set up by local communities.

Plan for McDonald’s on old hotel site in Gravesend overturned: Planning permission to turn an old hotel in Gravesend, Kent into a petrol station, M&S food shop and McDonald’s drive-through restaurant has been withdrawn after the threat of a judicial review. Permission for the development, at the old Tollgate Hotel site in Gravesend, was granted by the local council in January, but Simon Privett, owner of the nearby Tollgate Service Station, lodged judicial review proceedings soon after. Gravesham council said: “Following legal advice the matter was settled out of court, on only one of the eight grounds claimed. The council paid the sum of £20,000 to Mr Privett to cover the court costs.”

South Carolina firm buys additional 20 TGI Friday’s: A South Carolina-based company, Southeast Restaurant Group (SRG), has added 20 additional TGI Friday’s to its portfolio of franchise and independently-owned restaurant concepts across the southern United States, and promised a “reimaging” for the outlets. SRG, which declined to disclose the financial terms of the transaction, acquired TGI Friday’s in Alabama, Texas, Tennessee, Mississippi and Arkansas. Nick Malone of SRG’s parent company, KFK Group, said: “The scope of the reimaging varies depending on the restaurant and the guest. Elements of the exterior reimage include new signage, lighting and awnings. On the interior, the elements include new artwork/decor, improved seating and tables, upgrades to lighting and an enhanced bar featuring a steel gantry with inset TVs.” The SRG acquisition comes after TGI Friday’s announced it would sell 247 company-owned restaurants in the US to franchisees. SRG said it would use the opportunity to refocus on the restaurant’s brand and marketing efforts. Elie Khoury, chief executive of KFK Group, said: “We are excited by the momentum Friday’s has and about the significant and meaningful opportunities we see for future growth.” 

G1 Group reports turnover and profit up, major acquisition: G1 Group, Scotland’s largest independent managed operator led and controlled by Stefan King, has reported pre-tax profit of £11,208,983 in the year to 31 March 2014, up from £10,874,798 the year before. Turnover grew to £67,352,319 from £66,317,891 the year before. Ebitda was up by £900,000 to £17,200,000. Chairman Brian McGhee has reported that acquisition activity is now picking up for the company with “a number of transactions in the pipeline”. Last month, the company bought four restaurants in St Andrew including the House Group’s Doll’s House, The Grill House and the Glass House – to add to its existing three there – plus a site in Stirling at a cost of “in excess of £2m”. He added: “The incidence of new development projects has increased in the current financial year. These have included the installation of the UK’s first regional IMAX screen at the playhouse in Perth. Perth has also seen the launch of City Café at the playhouse together with Harry’s nearby, a quirky family-oriented restaurant with a superb children’s soft play area appropriately named The Little Playhouse. Glasgow’s West End has also seen he launch of Hyndland Fox, which has traded well since it opened in May 2014. Consistent with (our) approach to achieving a balanced spread of risk, the group is engaged in two retail developments for which Sainsbury’s and Tesco will be the key tenants. The group was also heavily involved in the development of restaurant and bar facilities to complement the craft brewery at Drygate Brewery in Glasgow’s East End.” McGhee reported that the Commonwealth Games had brought strong trading for operations in central Glasgow with “both England and South Africa using G1 venues as their headquarters”. He added: “Many medal winning athletes chose to celebrate at G1 outlets and Corinthian in particular played host to many celebrities including Sir Steve Redgrave, Dame Kelly Holmes and Prince Albert of Monaco.” Of 2013, McGhee said: “G1 has continued to show growth in turnover and profitability, though the impact of market caution and of a series of refurbishments (and hence periods of closure) have been a restraining influence in 2013/14 growth, with benefits expected to show through in 2014/2015.” Group net assets increased by £5.9m to £45.7m at 31 March 2014. A total of £6.63m was invested to “maintain estate integrity” and £4.25m was invested in acquiring new properties in the most recent financial year. Group net debt remained unchanged at £78.1m (2013: £78m).

Spudulike reports like-for-like growth after deepening losses: Baked potato brand Spudulike, which was founded in 1974 and was owned for a short while by the British School of Motoring, has reported pre-tax losses increased to £733,492 in the year to 2 January 2014, compared to £284,546 the year before. Turnover dropped to £14,944,253 compared to £15,660,071 the year before. It stated: “The company experienced record high commodity prices as a result of adverse weather conditions in 2012. These costs impacted heavily on gross profit margin. Following the more favourable recent weather conditions this season commodity prices have now fallen to more normal levels and we will see the benefit of this in 2014. Actions taken in the course of 2013 and the start of 2014 have started to generate returns and the company is now experiencing like-for-like sales growth across the estate.”

Heineken UK – 2013 saw robust performance from brands, reports lower operating profits: Heineken UK increased turnover by £533.7m in the year to 31 December 2013 to reach £2,081.5bn. Overall operating profit for the year reduced to £10.6m (2012: £73.2m). The company stated: “The reduction was driven by higher operating costs, primarily a non-recurring provision charge of £35.2m with respect to a reorganisation of our supply chain and business support capabilities.” The company made a loss before tax of £45.8m compared to a profit of £20.2m the year before. However, Heineken reported a very strong performance from its major brands. It stated: “One of our core principles is to make cider and beer that people love. We brought this principle to life during 2013 through our brands performance, whilst still operating within an environment, which continues to be challenging. Within the cider category, Bulmers grew both volume, market share and revenue per hectolitre, whilst Strongbow penetration increased, double that of the overall cider category. Within the off-trade, Strongbow market share increased whilst the on-trade market share decreased to a significantly lower level. Strongbow Dark Fruit was the biggest innovation in the UK in 2013 across all categories, outperforming our volume targets. The Foster’s brand equity remains the highest, with lower levels of investment. Overall, Foster’s outperformed competitors in mainstream beer, leading to competitive pressures on pricing, particularly on draught. All our premium beer brands grew market share during the year. Desperados, Sol and Heineken were the top three fastest-growing premium packaged lager brands within the UK during 2013.”

Wellington Pub Company reports profit increase: The UK’s largest free-of-tie pub operator, with around 800 pubs, has reported pre-tax profit increased to £9,419,000 in the year to 31 March 2014, up from £6,734,000 the year before. Turnover declined to £26,834,000 from £27,207,000 the year before. Operating profit was £19,841,000 compared to £17,599,000 the year before. A dividend of £4,165,00 was paid compared to £3,565,000 the year before.