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Morning Briefing for pub, restaurant and food wervice operators

Thu 9th Oct 2014 - Propel Thursday News Briefing

Story of the Day:

Mitchells & Butlers to end Toby Express trial: Mitchells & Butlers is to end its Toby Express trial, which involved opening two sites offering the key elements of its Toby Carvery brand in a grab-and-go format. The company opened its first Toby Roast Sandwich Express at the Southampton West Quay shopping centre at the end of 2011. A second site opened at the St David’s shopping centre in Cardiff in March 2012. The format offered Toby meat in sandwiches but no alcohol. It offered a predominantly takeaway menu designed for people on the move although there was some seating. The concept was aimed at allowing M&B to expand the Toby Carvery offer into a broader retail environment and the transport hub segment. However, the Southampton site has now been closed and the Cardiff site is on the market. A spokesman for Mitchells & Butlers told Propel: “We opened the two Toby Express sites as a trial and have gathered some excellent learnings, as well as extending our knowledge of the Toby offer. We don’t believe there is an opportunity to grow the Express offer longer term. Instead, we will continue to focus on investing in and expanding our core Toby Carvery brand. The Southampton Express business closed in August and we continue to trade the site in Cardiff while we actively market the business.” 

Industry News:

CGA Peach unveils shortlist of industry heroes: CGA Peach has unveiled its shortlist of industry leaders for the 2014 Hero Awards, the annual celebration of the brands and individuals at the forefront of our dynamic industry. The awards feature 12 different categories, with votes coming from 170 leading industry executives. The winners will be presented after this year’s CGA Peach 2020 Conference in London on 18 November, an event that celebrates its tenth anniversary this year. The industry leader shortlist is: Simon Emeny, chief executive of Fuller Smith & Turner; Andrew Guy, chief executive of Ed’s Easy Diner; Simon Kossoff, chief executive of Carluccio’s; Tim Martin, chairman of JD Wetherspoon; Andrew Page, former chief executive of the Restaurant Group; and James Watt, co-founder of BrewDog.

Bradford restaurant chosen to serve halal food at Downing Street party five months after opening: A Bradford halal restaurant, Cona, has been chosen to serve the halal food at a party held in Downing Street for members of the UK’s Muslim community. The reception’s guest list includes government ministers, community and business leaders, charities and public servants from across the UK. One of the restaurant’s co-owners, Oman Rana, said: “We could not ask for a better endorsement of Cona than for Mr Cameron and his guests to taste our halal cuisine for themselves.” The other co-founder, Armi Ahmed, added: “In the five months since we opened we have become a food destination. We get regular foodies coming from London, Edinburgh, Portsmouth and Ireland because there is nowhere else like us producing such high quality halal food.” Ten new jobs were created at the restaurant when it was opened by its businessmen and self-confessed “foodie” owners, who wanted it to appeal to Bradford’s growing band of young Muslim professionals facing a restricted choice of food in non-halal restaurants.

Michelin-starred Bristol brothers launch cookery academy: The owners of a Michelin-starred Bristol restaurant have teamed up with Weston College in Weston-super-Mare, Somerset to launch a high-class cookery academy. Brothers Jonray and Peter Sanchez-Iglesias own and run the Casamia restaurant in Westbury-on-Trym, Bristol and will now be working with Weston College’s cookery faculty to launch the Casamia Academy. After a testing interview and cook-off, the brothers hand-picked ten level two and level three cookery students to be the first in the academy. They will benefit from the chefs’ regular tuition and guidance, and will have the chance of work experience at Casamia. The brothers have recently had their Michelin star renewed, and have also been given the title of Chefs of the Year by the Waitrose Good Food Guide 2015.

Company News:

Pret A Manger to debut in Shanghai next week: Pret A Manger will debut in Shanghai, China next week (Thursday 16 October), occupying a space in K11, one of the city’s recent shopping mall and office developments. Chief executive Clive Schlee said: “What we offer is real food. Pret is coming with a level above the average foreign fast food chain. We are targeting young office workers, which has been our tradition right from the beginning.”

Freehold of Michelin-starred hotel on market for £1.4m: The freehold of Overton Grange Hotel and Spa, near Ludlow, Shropshire, set in 3.5 acres of grounds, is on the market through agent Colliers for £1.4m. The Mulberry Suite was refurbished in 2004 and can cater for weddings, conferences, and corporate meetings with up to 100 guests with marquees accommodating up to 250 more. Peter Brunt, of Colliers, said: “The present owners bought the hotel in 2002, recognising that it had the potential to become something really special, and invested considerable sums in an extensive refurbishment. Having achieved what they set out to do, they are now looking forward to retirement and so the hotel is to be sold.”

Pho targets estate of 25 sites within three years after securing two more: Pho, the Vietnamese restaurant group run by Stephen and Juliette Wall, has secured two more sites in London: Bedford Hill in Balham (about 75 covers) to open next month and a Covent Garden restaurant (about 50 covers) to open early next year. Following this London expansion, the group will also open in Birmingham at the new Grand Central Station in September 2015. The 12-strong group opened its largest London site in the One New Change development at St Paul’s last month, following a successful opening of Pho Chiswick and Pho Battersea Rise earlier this year. Currently, Pho has ten restaurants in London, one in Brighton and one in Leeds. The Walls, who still run the company day to day, are aiming to grow the restaurant group to about 25 sites within the next two to three years. 

Theakstons reports turnover down, profit up: North Yorkshire brewer Theakstons has reported turnover down 4% to £9.6m in the year to end of December 2014. Profit before tax was £2.04m compared to £1.9m in the previous year. The company signed a five-year exclusive distribution deal with Heineken, which, the company, said, has “significantly reshaped” its business from November 2013. The company stated: “The growth in turnover in 2013 on a like-for-like basis would have been 4% (assuming the original long term agreements had continue throughout the whole of 2013 rather than the 8% reduction.”

Marco Pierre White franchised site opens in Manchester: A Marco Pierre White franchised restaurant has opened its doors in Manchester. Called Marco’s New York Italian, the restaurant is located in the Holiday Inn hotel at MediaCityUK. The 165-cover venue serves the chef’s take on American-Italian food including fresh pastas, steaks, seafood, burgers and handmade pizzas. Having signed a franchise agreement with Black & White Franchising, the restaurant is managed by Tower Hotel Management

Californian-style bottle shop and pouring house opens in Nottingham: A Californian-style specialist craft beer shop for drinking in or taking home, Junkyard, has opened on Bridlesmith Walk, Nottingham, claiming to be the city’s first “bottle shop and pour house”. The 140-capacity location houses 15 taps dispensing a constantly revolving selection of craft beers from the United States, Britain and Europe. Many of the American draught and bottled beers are currently exclusive to Junkyard. Owners Nigel Garlick and Sam Dean import brews directly from California from breweries such as North Coast, Ruhstaller, Heretic and Uncommon. Junkyard also offers the chance for visitors to take draught beers home in a 64oz flagon by joining the “Nottingham Growlers” club. The outlet also includes a backyard, open all year round from 10am to midnight, locally roasted coffee, wines, cocktails and homemade soft drinks. The menu includes grazing plates, sharing dishes, deli classics and bar snacks. Garlick said: “We are delighted with the fit-out and really excited by Junkyard, we think it offers Nottingham something new and sends out a real statement of intent that we are serious about selling the best craft beers from around the world, but in an environment that sells great food, cocktails, wine and coffee.”

Carlsberg UK swings into the black: Carlsberg UK has reported that it made a pre-tax profit of £11.27m in the year to 31 December 2013, a turnaround from a loss of £11.6m the year before. Turnover was £991.6m, a fraction down from £994.5m in 2012. The company reported that a new bottling plant, opened in 2013, provided increased flexibility in packaging output. It said: “Both Somersby Cider and Carlsberg Citrus have enabled the UK business to broaden its portfolio appeal. San Miguel continues to grow at a strong rate, outperforming key competitors and driving the growth in the world beer market. Operating profit before exceptional items was £5.2m (2012: £10.5m) reflecting the investment in new systems and the operational asset base, along with continued weakening market conditions.” Carlsberg UK received a capital injection of £20m from Carlsberg UK Holdings during the year.

Inventive’s Manchester rum bar doubles revenues: New Inventive Bar Company’s rum-themed Revolución de Cuba bar in Manchester is in rude health as it marks its second anniversary, the company has said. Revenues have doubled over the past year, and staff numbers are up to 115, from 56. It now has a weekly footfall of 10,000 and around 3,000 people on a Saturday night. The restaurant accounts for around 20% of turnover. The Manchester venue was the fifth standalone Revolución de Cuba to open in the UK and is one of Inventive’s 67 venues nationwide. General manager Ronnie Timmermans said: “The hospitality industry is a competitive industry in which to work, yet we have surpassed all expectations. There isn’t any real secret to our success. De Cuba has a unique offering with something for everyone, every day of the week and our approach to staff development attracts a hardworking and committed workforce.”

Spearmint Rhino back in the black: Lap-dancing chain Spearmint Rhino has reported a pre-tax profit of £551,217 for the year ending 31 December 2013, up from a loss of £284,874 the year before when there was an exceptional item of £1,449,127. Turnover dropped to £7,701,465 from £8,500,046. The company owes founder John Gray £600,000 plus £3.1m (2012: £3.4m) to the parent company. Directors remuneration dropped to £101,000 from £162,769 the year before.

Franks Steakhouse to open fourth outlet: The owner of Franks Steakhouse in Northampton is to open a fourth outlet, under the Franks Steakhouse name, in Watling Street, Towcester, before the beginning of the new year. Tom Hewer, an experienced publican and restaurateur, opened his first Franks Steakhouse in Wellingborough Road, Northampton in 2011, selling steaks cooked over a Josper Oven and served on wooden boards. A year later he opened a sister restaurant, Franks Hamburger House, also in Wellingborough Road. Hewer, who owns WH Thomas butchers in Ecton, has also just taken on the Artizan Arms in Artizan Road, Abington, which is due to reopen next month.

Quiz the Nation hits £195,000 crowd-funding target: Quiz the Nation, the pub-based game show presented by former Krypton Factor host Gordon Burns has completed its CrowdCube funding, raising its entire £195,000 target for a 19.6% equity share in just 14 days. Equity has been secured from 98 investors, with the largest individual investment coming in at £50,000. The company is now looking to over-fund in order to accelerate the rate at which they can reach pub operators and grow the business. Bill Holroyd CBE, the philanthropist and serial entrepreneur who founded the charity Onside Youth, is the joint largest individual investor in Quiz the Nation. He said: “I have been involved in the hospitality industry in one way or another ever since I studied Hotel & Business Administration at Blackpool and The Fylde College. I am absolutely passionate about the industry and I am delighted to be supporting this new venture, which I see as a great way to give something back to the pub sector. Quiz the Nation is a win-win offering for pubs: costs them nothing and has the power to dramatically increase footfall and revenue on Sunday evenings – traditionally a quiet night.”

Former Happy Eater becomes gourmet burger restaurant as takeaway owner expands: A “gourmet burger takeaway” operator has now opened a 100-cover restaurant in Burnley, Lancashire on the site of a former Little Chef outlet. David Hankinson, 33, has spent more than £100,000 turning the former Happy Eater site in Barracks Road., Burnley into a 100-cover burger restaurant. Hankinson, who has operated Kenank’s as a takeaway in Rosegrove Lane, Burnley for the past 18 months, said: “There were logistical problems with the takeaway because it had grown so popular. We couldn’t keep up with demand and struggled with the freshness and quality of the food in a restricted space – that’s why we needed to expand. I’ve poured literally every penny I own – bar the roof over my head – into this business. It’s been a pretty big job.”

New pub chain launched in County Durham: A new pub chain, The Fat Brewer Company, has been launched in County Durham by local businessman Christian Burns. He launched the company after three decades in the hospitality trade with his new enterprise aiming to develop its own beer and staff, with a dedicated brewery and training school. Burns is also about to launch a brewery which will produce hand-crafted beers to sell through his own pubs and other retail outlets. The training school, The Fat Brewer’s Hospitality Training Academy, in Crook, County Durham, is running British Institute of Innkeeping-approved hospitality courses. The firm’s customer experience manager, Tony Morris, said: “It has been amazing to watch [people’s] development throughout the course, which involved two weeks’ work experience at the company’s Kings Bar & Restaurant in Crook. A very exciting future will see The Fat Brewer Company launch new bars which will be designed specifically around the hand crafted ale house concept.”

BrewDog – Tokyo opening is going well: The Scottish brewer and retailer has reported its Tokyo opening in March this year, located in the Roppongi area of the city, is going well. In the company blog, BrewDog stated: “Roppongi wasn’t one of the more established craft beer bar areas in Tokyo, but we felt it had that edgy, ‘bad boy’ image that would work really well with BrewDog. It’s a playground for Japanese and foreigners alike. We try to promote hard-to-find beers, both from Japan and around the brewing universe. We also try to source beers from less ventured categories, which attracts a super diverse audience! There is a core, steadily-growing band of regulars, the beer geek crowd who we can rely on seeing for any new releases, sumo wrestlers, and a decent proportion of gaijin (non-Japanese). So it’s petty damn diverse!”

Betfred owner seeks to reopen famous Salford pub in redevelopment plan: Fred Done, owner of the Betfred chain of betting shops, has submitted plans for a building development that will see a boarded-up Grade II listed pub, the Black Friar, in Salford reopened. Done’s company FICM lodged plans with Salford Council this week to build 380 flats in two blocks, with the pub, at the junction of Trinity Way and Blackfriars Road, which dates from 1886, forming the cornerstone of the scheme. It would become the main entrance to the development and also provide communal facilities such as a resident’s party room. Jon Matthews, director at 5plus, the architects of the scheme, said the scheme would give “a new lease of life for the Black Friar pub.”

Former Gaucho boss plans to sell London’s most expensive beef: Former Gaucho managing director Martin Williams is planning to open his new M restaurant brand with the most expensive beef in London. Martin Williams left the steakhouse chain in March and will open the first of three M restaurants next month. The menu at the City branch includes a 150g cut of Kobe beef from a prized Japanese breed, which costs £149. Japanese beef has returned to London only recently, after a 13-year ban prompted by the BSE scare was lifted. Williams told the London Evening Standard: “Kobe is phenomenally expensive and phenomenally rare. Most people have Japanese wagyu, not Kobe.” He believes M will be the only restaurant in London selling “proper” Kobe. The 15,000 sq ft site on Threadneedle Street will house two 100-cover restaurants, a wine bar, a “secret den for City boys” and sleeping pods. The site’s second restaurant, Raw, is more casual and allows diners to cook their own food at the table. He plans to open a second M in the West End this time next year, with a third planned for 2016.

Expanding Manchester restaurant group to open lounge bar: The Manchester-based Italian restaurant Avalanche, which is already planning two new venues in Cheshire, is investing £200,000 in the launch of a new lounge bar called Lusso Lounge. The owners of Avalanche will refurbish the Booth Street venue SubZero, below the restaurant, as part of a £2m expansion strategy. Managing director Zara Ishaq said: “Since its launch in 2012, Avalanche has gone from strength to strength and has surpassed our projected turnover figure for 2013. We’ve built up a customer base of loyal individuals and are proud to have gained a credible reputation in a city that is famed for its great restaurants and bars. We’re hopeful that Lusso Lounge will enjoy the same success as Avalanche and are working hard to ensure that we create a venue that Manchester will love.” The restaurant had a turnover of around £2m in its first year. The new venture is expected to create 25 jobs.

Carluccio’s unveils new autumn menu: The Carluccio’s chain has unveiled its new autumn menu, with eight new dishes. They are: pasta e fagioli soup with borlotti beans and tomato, £5.45; two new antipasti, deluxe, with Ventriciani salami, pancetta-wrapped prawns, pate, bruchettine, buffalo mozarella and balsamic onions, for £18.95, and a vegetarian, Verdure, for £13.95; tortellini all’Emiliana, stuffed with prosciutto and served in a cream and ham sauce, £9.95; pollo alla Napoletana, roasted chicken thighs with cherry tomatoes, £12.95; lenticchie e salsiccia, Italian sausage on a bed of lentils, £14.95; Branzino con patate e salsa, fried sea bass with rosemary potatoes, £14.95; and one new side dish, patate gratinate, £3.50. The chain also has one new aperitif, Mandarino, made with mandarin juice vodka, Cocchi Americano, peach bitters and Pino Grigio wine, £6.95.

Former Tokyo nightclub to open a nightclub plus ‘brewhaus’: The former Tokyo nightclub in Lincoln has been taken over by a trio of local music promoters, who will split the site in a nightclub and a bar offering 72 world beers. The Grade II listed Constitutional Quarter on Silver Street will open its doors on 11 October as new club, Circle, plus a ground floor bar called Brewhaus. The upstairs Circle nightclub features new lighting and sounds with a “festival-style” LED wall, “Vegas booth” seating with table service, mixed media artwork by Dirty Hands Co and a VIP den. The ground level area of the building has been opened up in order to create the new Brewhaus bar, run by experienced leisure manager Rob Smith, a contemporary bar with an industrial-style look created by designer firm Collective Design. The bar will offer live weekend music sessions, an in-house pizzeria and a bar menu created by drinks consultancy The Liquorists. As well as 72 world beers to choose from, there will be a separate Tap Room bar where guests can pull their own beer.

Stonegate Pub Company wins late licence for former Bramwell site in Inverness: Stonegate Pub Company has won a 3am licence for a former Bramwell Pub Company site in Inverness. It now called The Caledonian but previously traded as Smith & Jones. At the licensing hearing, Archie MacIver, representing Gs nightclub in Castle Street, argued that the Caledonian’s application should be turned down. “There will be four or five other pubs in Inverness watching this intently,” he said. “If this is approved, it sets a precedent that will lead to others requesting late licences.”

Cote lines up West Bridgeford site: The French brasserie chain Cote is lining up an opening for the up-and-coming dining quarter in the West Bridgeford suburb of Nottingham. The chain has lodged a request with the local council to open a new restaurant at the former David Holmes store on Central Avenue. Planning permission is being sought to change the use of 2-6 Central Avenue into a 114-seat Cote Brasserie restaurant with a pavement terrace of 30 seats on one side of the premises, and an estate agent on the other side. If the plans are passed, the restaurant will open in late 2014 or early 2015.

Southampton restaurant switches away from Italian: A Southampton restaurant has re-invented itself after owners decided the Italian market was overcrowded. Brothers and business partners Alfredo and Jimmy Ndoci have ditched the Italian cuisine of Scoozi and transformed their Oxford Street restaurant in the Chop House, focused on lamb and pork chops, burgers and rotisserie chicken. Alfredo Ndoci said: “We are excited about this new concept. We wanted to offer something new and different to the marker and at the moment we are the only restaurant like this in the area.”

Patisserie Valerie launches winter menu: The Patisserie Valerie chain has unveiled its new winter set menu, with two courses for £9.95 and three for £12.95. The fixed-price menu has four starters, soup of the day, smoked salmon mouse, pork and tomato meatballs in a tomato sauce or goat’s cheese tartine; four mains, confit of duck, bangers and mash, chicken and vegetable stew with basmati rice or asparagus and peas ravioli; and four desserts, creme brulee, hot apple, cranberry and almond crumble tart, chocolate fondant or a slice of gateau.

Douglas Jack – we recommend buying Marston’s shares: Numis Securities’ analyst Douglas Jack has issued a ‘Buy’ note on Marston’s shares, with a target price of 180p, after yesterday’s full-year update from the company. He said: “As expected, trading slowed in Q4, largely due to unhelpful weather in late August. However, like-for-like trading and expansion are in line and we are holding our forecasts, which include a 12% increase in earnings during 2015E, a year which offers a 5% dividend yield, by our estimates. Following recent weakness, we are upgrading our recommendation to ‘buy’. We forecast Marston’s to have generated 10% underlying PBT growth in 2014E, after excluding 2013’s 53rd week (£3m) and the impact of disposals (£10m) and forecast 12% PBT growth in 2015E, driven by new build expansion and aided by strong cost mitigation. Our positive recommendation reflects this and the 5% dividend yield (2015E).”

Brands depart Torquay’s Fleet Walk: The Fleet Walk shopping centre in Torquay is losing three restaurant and cafe brands this month. Burger King closed its Fleet Walk site this week, which comes after the new that both Pizza Hut and Caffe Nero are set to leave Fleet Walk. A spokesperson for Pizza Hut confirmed: “The Pizza Hut in Fleetwalk Shopping Centre, Torquay, will close next week. We have two popular restaurants located in Exeter and are making every effort to find our members of staff jobs at other restaurants.” Caffe Nero is due to leave Fleet Walk at the end of October. A Caffe Nero spokesperson said: “I can confirm that we are closing our store on Fleet Walk, only to relocate it to a new location on Union Street. This will open a couple of days later, but will mean that happily, we’ll continue to serve our customers in Torquay from our new site.”

Greene King lines up hotel for its Metropolitan Pub Company division: Greene King is converting the former Tulse Hill Tavern in South London into the Tulse Hill Hotel, with the venue sitting within its Metropolitan Pub Company London portfolio of premium sites. The property, dating back to 1840, which is set to open early next month, will have nine bedrooms, a restaurant, private dining room for up to 14 guests, chef’s table for five, bar, lounge and al fresco dining. The renovation will retain much of the building’s original architectural details, including the signage and copper lanterns outside, while the interior will feature parquet flooring, wood panelling and a reclaimed 1920s bar.

G1 coffee supplier reports profit leap: Coffee roaster Matthew Algie, which supplies G1 Group and Gleneagles, has recorded a near 32% rise in profits in spite of raw material price rises and currency fluctuations. The Glasgow-based business, headed by chief executive Gary Nichol, said it had benefited from a wider product range which included launching new coffees at both the premium and lower cost end of the market. Accounts have been filed at Companies House that show an increase of 1.9% in turnover, from £32.1m to £32.7m, with pre-tax profits growing from £2.5m to £3.3m.

Judy Joo previews new London Korean restaurant at Fortnum & Mason: The celebrity chef Judy Joo is previewing her new “informal Korean” restaurant in Soho, Jinjoo, by taking over the kitchen at Fortnum and Mason’s Fountain Restaurant in Piccadilly, central London for one night only tonight (9 October). Joo, an alumna of Gordon Ramsay, who is bringing her Korean Food Made Simple show to the UK Food Network in January, will cook a three-course Korean feast, her interpretation of Korean street food as inspired by her heritage. The menu will include Korean fried chicken, braised wagyu shortrib and salted caramel hotteok (Korean sweet pancakes). Guests will also sample Hwayo Soju, a premium brand of the world’s most popular alcoholic drink not currently stocked in the UK, which will be launched in Fortnum’s on the same day. Tickets are £45 per person. Jinjoo opens at 6 Kingly Street, Soho, London in December. The ground floor will be a bar focused around snacks and cocktails with the restaurant in the basement. Joo was at one time the executive chef at the London Playboy Club.

Former student bar managers open own venue in Northern Quarter: Two former student bar managers, Gavin Williams and James Kennedy, have opened Allotment Bar at the former home of Nickleby’s Pub on Dale Street in Manchester’s Northern Quarter. The venture has created 11 jobs and is aiming to turn over £700,000 in the first year. Williams said: “We are privileged to be surrounded by a vibrant business community and residential housing and see our location as a real unique selling point. Exciting times are ahead and we are looking forward to establishing ourselves and being recognised as a top provider of food and drink in Manchester.” The pair, both in their 20s, who ran bars in and around Manchester during their student days, put up £75,000 to pay for the £150,000 refurbishment of the premises, with RBS lending the rest.

Tennent’s wins award for gluten-free lager: A new gluten free lager created by Tennent’s, the Glaswegian brewer, has struck gold at one of the world’s most influential beer championships. Tennent’s Gluten Free 1885 was launched in Italy in August this year. The beer, a gluten-free version of the Tennent’s 1885 Lager which is now exported to 26 countries worldwide, received a gold medal at the recent World Beer Championships in the United States. Billy Mason, group operations director for C&C Group, owner of Tennent Caledonian Breweries, said: “This is a fantastic award for everyone at Wellpark Brewery.”

Wetherspoon kickstarts Northern Ireland expansion with Methodist chapel in Belfast bought for £800,000: JD Wetherspoon has begun an expansion drive in Northern Ireland after many years of not opening new pubs. Chairman Tim Martin has previously told Propel that the company now had a good team in place in Northern Ireland after several years in which the wider pub trade struggled. Wetherspoon has bought a former Methodist Church in the university area of Belfast for a reported £800,000, double its £400,000 asking price. The sale of the landmark red sandstone listed building, with interconnecting church halls, between University Road and Fountainville Avenue was completed this week on behalf of Wetherspoon by agent DTZ McCombe Pierce. Wetherspoon is also in talks to purchase the site of the former JJB Sports store at Royal Avenue in the city centre. Martin, who was born in Northern Ireland, told local media: “We are very keen to open another of our pubs in Belfast and are pleased to have purchased this site in University Street. We are confident that a Wetherspoon pub will be good for the city and also act as a catalyst for other businesses to invest in Belfast.”

Burger King ups the ante in US discount war: Burger King in the United States is lowering its chicken nugget prices to 15 cents (9p) each as fast-food chains compete to lure budget-minded customers. A ten-piece chicken nugget order will cost $1.49 for a limited time in the US, the company said, half the regular price of $2.99. While a majority of franchisees will offer the discount, the company has not decided how long it will run, a Burger King spokeswoman said. Fast-food restaurants are trying to draw cash-strapped Americans with new and discounted fare as younger diners increasingly flock to fast-casual chains such as Chipotle Mexican Grill. McDonald’s is selling 20 chicken McNuggets for $5, or 25 cents apiece, as well as a $2 jalapeno burger. Burger King has recently offered a two-sandwiches-for-$5 deal.

Pizza Hut to open in Hartlepool shopping parade: Pizza Hut has been given permission to open a takeaway shop in a unit built on the site of former pub, The Shakespeare, in Catcote Road, Hartlepool. Hartlepool Council planning committee approved the proposal, a renewal of plans which had previously elapsed, despite concerns by residents of litter, an increase in anti-social behaviour, and a potential for a rise in the sale of alcohol as a result of the takeaway. Geoff Lilley, a council member for Putting Hartlepool First, said: “I feel for the people who live opposite because those shops have become like an arcade of fast food outlets, and I also think we might see one or two of those potentially going to the wall, which I suppose happens.”

Hard Rock Cafe reports profit dip: Hard Rock Cafe UK has reported turnover rose to £20.7m in the year to 31 December 2013, a 3% rise from £20.08m the year before. Pre-tax profit was £4.8m, down 4% from £5.02 the year before. The results include a brief period of trading for the company’s third UK site, located in Glasgow, which opened in November last year. The company reported that customers spent an average of £29.13 on retail merchandise, against spend-per-head of £23.94 on in the restaurants. There were a total of 498,276 restaurant transactions, up 4.3% on 2012, and 320,079 merchandise transactions, down 3%. The company said: “The impact of opening Glasgow was to increase restaurant transactions by 23,931 and retails transaction by 6,667. The increases to the average spend in restaurant and retail are due to the weaker pound against the dollar and euro. It was also influenced by the restructuring of the menu and a small price increase in retail.” In total, the sale of food and beverage was worth £11.49m in 2013 up from £10.76m, while the sale of merchandise was worth £9.22m in 2013, down from £9.32m.

Chipotle Mexican Grill reports increased UK losses: Chipotle Mexican Grill has reported increased losses at its six-outlet UK operation in the year to 31 December 2013. Turnover rose to £5.99m from £4.04m in 2012. Losses before tax were 63% up at £3.28m, from £2m the year before. The company said: “We’ve seen positive improvement in our business fundamentals as we’ve worked to refine our model in the UK. Our food costs have declined year-on-year as we’ve worked with our suppliers and focused more proactively on our sourcing. Labour costs have decreased as we’ve strengthened our teams and become more efficient at serving our customers. We’ve experienced leverage throughout our operating costs as sales have grown during the year. Comparable restaurant sales have trended favourably throughout 2013 demonstrating a growing demand for our food and our brand.” Of the threats Chipotle faces in the UK, it said: “Continued development in the UK will partially depend on our ability to generate strong sales and returns for our investors. Specifically, due to lower consumer familiarity with the Chipotle brand, differences in customer tastes or spending patterns, or for other reasons, sales at restaurants in the UK may take longer to ramp up and reach expected sales levels, and may never do so. To build brand awareness we may need to make greater investments in advertising and promotional activity.” The company has losses of £6.02m, up from £3.31m in 2012, to carry forward against future trading profits.

Apostrophe founder Chen invests in Soupologie: Soupologie, the fresh “free-from” soup company, has received a significant investment from the founder of the Apostrophe cafe chain, Amir Chen who has agreed to join its advisory board. Chen was co-owner and chief executive of Apostrophe from 2004 to this year. He developed Apostrophe into one of London’s leading cafe brands, operating out of 23 locations across central London high streets, shopping centres, tourist attractions and at Heathrow and Gatwick airports. In 2011, Apostrophe established a joint venture with the award-winning caterer CH&Co, to whom Chen sold his remaining shares in April. Before Apostrophe, Chen was an investment banker with Lehman Brothers in London and New York. He said: “I have been so impressed with Soupologie’s products, the speed at which the company has grown, and the loyal following that the brand has acquired so quickly with the likes of Ocado and the major health food retailers. It is a testament to the dedication and uncompromising attitude of Soupologie’s founders, Stephen and Amanda Argent, and I look forward to working with them to make Soupologie a leading player in the health food market.” Through his position on Soupologie’s advisory board, Chen will help the company with innovation, gaining wider brand recognition and expansion into new markets. In announcing the news of Chen’s investment, Stephen Argent, founder of Soupologie, said: “We are thrilled that Amir is on board, as his invaluable experience in this sector will help us achieve our vision for Soupologie over the coming years. These are exciting times for Soupologie, and Amir’s contribution will help us grow and develop significantly, fulfilling our goal of making delicious healthy food accessible to as many people as possible.” Chen has made his investment through the crowd-funding site Crowdcube (www.crowdcube.com). It is part of a fundraising round by Soupologie, which are looking to raise £120,000.

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