Coaching Inn Group secures £10m BGF investment to double portfolio: The Coaching Inn Group has secured a further £10m investment from the Business Growth Fund (BGF) to support a planned £50m expansion across the UK. The company operates 12 coaching inns and will use the capital to increase the size of its portfolio to 25 properties by March 2019. The £10m injection follows an initial investment of £4.5m from BGF in March 2015, which helped the group to purchase and operate an additional six properties. The group, which doubled its Ebitda in the first six months of this year and reported a 33% increase in sales, is listed as one of London Stock Exchange’s 1,000 Companies to Inspire Britain and has just been named “one of the one’s to watch” in The Sunday Times Fast Track 100. The Coaching Inn Group founder and chief executive Kevin Charity said: “Having set a target of doubling the estate in five years, we’ve almost hit that target in less than two years. This latest investment from BGF is testament to the strength of our business model and we’ve now set even more ambitious growth targets. The investment from BGF means we are on track to achieve our growth plan without financial distractions or cash flow restrictions. We now have a tried and tested formula and ultimately our goal is to acquire the right properties in the best locations, and sensitively restore them in line with the character of their local surroundings.” The investment was led for BGF by Mark Freer and James Syrotiuk. The Coaching Inn Group was advised by Irwin Mitchell, while the BGF was advised by Browne Jacobson and Keith Fleming.

Numis – we expect a flatter management structure at The Restaurant Group under new chief executive: Numis Securities leisure analyst Tim Barrett has said it expects a flatter management structure at The Restaurant Group under its new chief executive. Issuing a ‘Buy’ note on the company’s shares with a target price of 430p, Barrett said: “Our analysis suggests an elevated labour sales ratio (30%) and high central overheads provide scope for material efficiency savings. These will take time; initiatives such as automated rostering are already being implemented and we expect a flatter management structure under the new chief executive. However, the full profit and loss impact is only likely in 2018. Recently initiated closures of underperforming sites will offset a degree of inflation, but the most important source of growth would be a better like-for-like sales performance (Numis estimates -2% in FY17, +2% in FY18). With a dividend yield of 5.3% based on an unchanged dividend (as in the first half), we see income support for the stock before earnings recovery becomes more evident. The cash cover of 1.8 times and conservative gearing (0.5 times Ebitda or 2.6 times lease-adjusted) mean that although The Restaurant Group is justifiably seen as a turnaround situation, it is robust in cash and balance sheet terms. The Restaurant Group trades on a 2017E price-to-earnings ratio of 12.9 times (11.3 times 2018), EV/Ebitda of 6.9 times, and dividend yield of 5.3%. Based on maintenance capex, the stable free cash flow yield is 9.4%. In our discounted cash flow terminal value we assume Ebit margins recover to 11.6% (13% previous peak) supporting a price target of 430p and suggesting 32% upside. We estimate the current share price is discounting a further 200 basis points deterioration in the margin, leaving the shares oversold in our view. While our estimate cut implies downside to consensus, we believe this is discounted at the current price and we expect a growing interest among value investors ahead of the new managements’ first presentation in March.”

Tokyo Group reports 11% like-for-like turnover rise despite site closures for refurbishment: Nightclub operator Tokyo Group, led by Aaron Mellor, has reported turnover increased on a like-for-like basis by 11% for the year ending 31 December 2015, despite a period of site closures for refurbishment. This was driven by the performance of its Digital site in Newcastle, where admissions were up nearly 2%. The announcement came in a filing with Companies House of a financial statement covering six of the 32 sites controlled by Tokyo Industries – Digital in Newcastle and Brighton, which has closed and been rented to a third party, Tokyo in Oldham, Huddersfield and Newcastle, and Fibbers in York. It reported “another strong set of results in what continues to be a competitive market place” for the venues financially backed by Barclays in what was a year of consolidation for the estate. The company reported turnover of £4,725,580 for the year ending 31 December 2015, compared with £5,118,732 the year before. However, the previous year also included a six-month period of trading for the Brighton site. It saw a pre-tax profit of £956,766, compared with £1,990,076 the previous year. The company made a one-off lease premium payment of £550,000 following the closure of the Brighton site. The company stated: “While we continue to be ambitious in our programme of expansion, we have taken the opportunity to consolidate this year and, rather than expand, we have commenced a programme of upgrading our venues and diversifying our business. We have invested heavily in our Huddersfield venue, which now offers a fully immersive lifestyle experience with a redesigned music venue upstairs, Brewhaus (offering craft beers and artisan food) on the ground floor, and a ‘speakeasy’ basement bar Louies Liquor Store selling a wide range of incredible bourbons and cocktails. It should be noted the venue was closed for an extended period to allow a complete refurbishment programme. We also invested in our Oldham venue and established a Stein Bierkeller to refresh our offering and this has been well received to date. As a direct result of these periods of disruption, admissions for 2015 have decreased by 14% year-on-year. Group turnover is £4.7m, which is 8% down on last year. However, last year also included six months of Brighton trading at circa £325,000 plus there was a one-off lease premium payment of £550,000. Therefore, on a like-for-like basis, turnover has actually increased by 11% which, given the period of closures in Huddersfield, represents a great result. This has largely been achieved due to the continued success of Digital Newcastle, which again featured high in the best Top 100 Clubs in the World in the 2016 OJ Mag poll. Admissions at this site are almost 2% up on the previous year, while spending per head has been maintained despite local competition.”

BrewDog passes minimum £500,000 target in £10m mini-bond raise within two days: Scottish brewer and retailer BrewDog has passed the minimum £500,000 target in its £10m mini-bond campaign on crowdfunding platform Crowdcube within two days. The mini-bond will pay 7.5% interest per annum over four years, with the move funding the company’s further expansion. The minimum investment for the BrewDog Bond was £500 – and it will be paying out the return bi-annually. In total, 1,072 investors pledged £814,815 and the campaign has now closed. The pitch stated: “BrewDog has retained a strong financial record in its first nine years of trading. The company has been profitable every year since 2008, and reported UK sales growth of 131% in 2015. Over the past five years, the craft brewery’s average annual operating profit growth has been 109%, and the projected turnover for 2016 is set to reach in excess of £70m. The BrewDog Bond will help us to expand into more international markets, as well as invest in the Aberdeenshire brewery to help keep up with ever-increasing demand from European markets. BrewDog will also be investing in its new American facility in Columbus Ohio, harnessing the burgeoning US craft beer market. BrewDog’s growing bar division will also benefit from this raise, as it continues to offer more people the opportunity to explore amazing craft beer in more cities around the globe. BrewDog is one of the world’s most successful crowdfunded businesses. Since launching the first ever round of Equity for Punks in 2009, BrewDog has accrued a 50,000-strong army of craft beer crusaders, who have collectively invested more than £26m to date. Having such an engaged community means BrewDog has not only generated significant investment for the business, but has also fostered a community of people who care about its future.” The company added: “We will dispatch to bondholders an exclusive BrewDog ID card that can be used to secure a 10% discount in all BrewDog bars, whether in the UK or overseas. Plus the cardholder will receive a free beer on their birthday, on us, and £10 of BrewDog beer bucks to redeem in one of our bars. Each and every BrewDog Bondholder will also receive a discount on their online purchases of 20%!” It is the second time BrewDog has launched a mini-bond on Crowdcube, with its first in September last year raising nearly £2.5m.

Saudi group completes acquisition of McDonald’s Singapore, Malaysian franchise rights: McDonald’s has completed the sale of franchise rights for its restaurants in Singapore and Malaysia to Saudi Arabia’s Lionhorn as part of a plan to move away from direct ownership in Asia. McDonald’s told Reuters it had transferred its ownership interest in 390 restaurants, more than 80% of which were company-owned, to Lionhorn, which is led by Sheik Fahd and Abdulrahman Alireza, who are franchisees for almost 100 McDonald’s restaurants in Saudi Arabia. McDonald’s did not disclose the financial terms of the deal. The Lionhorn deal is in line with McDonald’s plans to bring in partners in Asia as it switches to a less capital-intensive franchise model. The company said it has franchised about 1,300 outlets as part of its target to become 95% franchised by the end of 2018. Meanwhile, Yum Brands has said it plans to sell most of its KFC outlets in the UK, with the deal expected to generate about £300m. The company already franchises about 600 restaurants in the region. Yum sees franchising as its best long-term strategy in the UK.

Beds and Bars signs Balmers in Switzerland as St Christopher’s franchise partner: Pan-European hostel and bar company Beds and Bars has signed Balmers in Interlaken, Switzerland, as a franchise partner of its St Christopher’s Inns hostel network.
Balmers, headed by chief executive Fabienne Balmer, offers various-sized dormitories, hammock rooms and camping, with stunning views of the Alps. It also offers year-round activities such as skiing, paragliding, kayaking, hang-gliding, rafting, rock climbing, jet boats and glacier treks. Facilities at Balmers include a beer garden and grill, and the “tent bar”. The franchise is expected to begin around mid-February 2017. St Christopher’s Inns operates 20 backpacker hostels, bars and pubs in ten cities and seven countries across Europe. In 2015, it was listed in the Sunday Times Track 200 list of Britain’s top private companies based on the fastest rate of overseas growth. In August, Beds and Bars became one of only seven companies in the UK to achieve the Platinum Standard set out by the Investors in People (IIP) framework. Beds and Bars (then Interpub) first attained IIP status in 1998, when chief executive Keith Knowles’ late wife Franca started the initiative within the company.

Rockfish to open Exmouth restaurant this month, fifth site: Rockfish, the seafood restaurant group founded and run by restaurateurs Mitch Tonks and Mat Prowse, will open its Exmouth restaurant on Wednesday, 14 December. The new restaurant is on Exmouth seafront next to the marina, keeping true to the Rockfish values of siting its restaurants close to a town’s fishing activity. The other Rockfish restaurants are in Brixham, Plymouth, Torquay and Dartmouth. Tonks told the Express & Echo: “I am really excited about being in Exmouth, it is another of the places I holidayed as a child. I think Exmouth is the perfect location for a fish restaurant and we look forward to making the restaurant a big part of the community, drawing more visitors to the town.” Rockfish recently appointed Hawksmoor Group co-founder and chief executive Will Beckett to the role of non-executive chairman. Beckett was part of a private group that supported the business in a fund-raise in 2014 alongside other food and restaurant industry leaders John Barnes, Steve Leadbeater (chief financial officer at Two Sisters group) and Henry Dimbleby (Leon, Street Feast/London Union). The investor group also included food critic Giles Coren, who became a fan after eating at The Seahorse in Dartmouth, Tonks’ seafood institution that regularly features among the best restaurants in the UK.

Bourgee to open third site, in Bury St Edmunds: Steak-lobster lounge restaurant concept Bourgee, which operates sites in Southend and Chelmsford, is set to open a venue in Bury St Edmunds, Suffolk, next year. The town’s iconic Cupola House in The Traverse will offer diners Bourgee’s brand of “affordable luxury”, with the opening creating 30 jobs. The company was founded by James Welling and Mark Baumann in 2014. Welling told Bury Free Press: “Having seen the consumer demand first-hand across Essex, we are eager to challenge what East Anglia has come to expect from their restaurant choices, showing customers they can have the quality dining experiences they have come to know and love from nearby London without the need for travel or a high credit card limit.” At Bourgee, all meat is cooked on a specialist Josper grill, with diners given graphite blades imported from Germany to cut the meat without tearing. Cupola House was seriously damaged by fire in 2012, when it was a Strada restaurant, and has since been rebuilt and restored. In October, Bourgee said it had also agreed deals for a site in Norwich, with discussions at an advanced stage on a property near Colchester. Welling told Propel the company would build a cluster of sites in Essex and East Anglia before gradually advancing across the country in an “organic, measured way”.

£4m restaurant Varanasi opens as Birmingham’s ‘largest ever’: A £4m restaurant – Varanasi – has launched in Birmingham as the “largest” to open in the city. The 500-cover, 20,000 square foot venue in Broad Street is spread over three floors, with a cocktail bar on each, while the majority of the venue is underground. There are also two luxury private dining rooms accommodating up to 30 covers each and televisions in each bathroom, while all furniture has been imported from Asia and Dubai and hand-crafted chandeliers have been shipped from China. Named after the Indian city of Varanasi, the restaurant is the brainchild of a millionaire who “wishes to remain anonymous” and has been inspired by the “opulence and decadence of Dubai”. The menu has been curated by Michelin-starred chef Alfred Prasad using “British ingredients to create authentic Indian cuisine with a twist”. Pride of place on the cocktail menu is The Jewel of Varanasi. Priced at £500, the drink is served in a crystal brandy balloon and made with Hennesey Paradis, Grand Marnier, vanilla pods, quail’s egg, and lemongrass syrup. It is shaken and served with an edible flower, black truffle shaving and 24-carat gold leaf. The building previously housed pub Waxy O’Connor’s and was empty for eight years. General manager Pawan Chhabra said: “The team has spent the past two years working tirelessly to create an iconic restaurant for the Midlands. With gold leaf, hand-painted artwork throughout, we have strived to create an experience like no other. We hope it will be a jaw-dropping restaurant for the city.”

Mad Men-style whisky and cocktail bar Swift launches in Soho: Mad Men-style whisky and cocktail bar Swift has opened in Soho offering more than 240 different bottles of whisky. The two-storey bar in Old Compton Street is the brainchild of four London bar personalities – cocktail duo Bobby Hiddleston and Mia Johansson, who used to tend bar at Milk and Honey, and husband-and-wife team Edmund Weil and Rosie Stimpson, who operate Nightjar and Oriole. Swift offers light aperitifs and pre-dinner drinks in its upstairs bar, with a “pre-theatre, continental Europe-meets-local-pub vibe and an emphasis on champagne, fortified wine and beer”. A range of small plates are on offer, including native and rock oysters, and Guinness Welsh rarebit with caramelised onion and sourdough toast. Downstairs At Swift features an “intelligently compiled” list of whiskies from around the world in a 1950s-inspired art deco setting. It also offers a 20-strong cocktail list. Hiddleston, who also previously worked at New York’s Dead Rabbit, recently named world’s best bar, said it was time London had a cocktail bar that brought scotch whisky back into the spotlight. He told Scotchwhisky.com: “While there are bars you can get really good scotch whiskies in, there’s not too many places that have a really diverse selection.”

Bramley Bars unveils plans to reopen historic Hampstead village pub: South west-based pub company Bramley Bars has unveiled plans to reopen the historic Old White Bear in Hampstead village, which has been closed for almost three years. Bramley Bars has submitted plans to refurbish the 300-year-old pub in Well Road and reopen it in 2018. Proposals outline a “dual use” plan to rent the upstairs floors to Heathside Prep School while the revamp is under way to meet the school’s “urgent need” for extra classroom space. The pub closed in February 2014 after it was sold by Punch to offshore firm Braaid Ventures. The new owners saw plans to turn the bar into a house rejected after the council listed it as an Asset of Community Value. Protesters against previous plans to change the use of the building had marched through the streets – some dressed as bears – in a bid to save the pub. Actors Ricky Gervais and Peter Egan were among those who supported the campaign. Dan Brod, a lifelong Hampstead resident and co-owner of Bramley Bars, which runs three pubs in the south west, told Camden New Journal: “Bramley Bars’ ethos is for all our pubs to offer great wine, beer, and English country food in lovely premises that are at the heart of their local communities. This is how we intend to run the Old White Bear.”

Camden’s Lock Tavern owners get go-ahead for Manchester restaurant and rooftop bar: Rose Five, owners of The Lock Tavern in Camden, has had its plans approved for a Manchester city centre restaurant and music venue with rooftop bar. The company is set to transform Capes Dunn art auctioneers in Charles Street into a 770-capacity, five-storey bar, restaurant and music venue called The Auctioneers. The basement will house a small events space and bar with seating around a stage, while the ground floor will feature a large bar, kitchen and street food space with long bench seating and a “cafe bar feel”. The first floor will feature a larger live music space with stage, dressing room and bar, while the second floor will comprise a bar, kitchen and terraced area with retractable canopy. On the third floor, an all-weather rooftop bar is planned, with a glazed extension, terraced area and views over the grand Principal Hotel. Manchester Confidential said it understood planning was granted under the proviso the new venue would not be a nightclub, although internal areas may stay open until 4.30am.

Burning Night Group to open Bierkeller in Birmingham on Thursday, Cardiff sports bar wins award: Burning Night Group will open its Bierkeller site in Birmingham on Thursday (8 December). The company, which operates similar venues in Liverpool, Manchester, Leeds and Cardiff, has taken a 15-year lease on the 22,000 square foot Birmingham property that formerly housed Brannigan’s bar. The Broad Street venue will comprise all three of its brands – the Bierkeller, Around the World and Shooters Sports Bar – and feature Bavarian oompah bands on Fridays and Saturdays. The venue will also feature a 4.8m x 2.4m P3.75 television, which will have the highest pixel density of any of the company’s huge LED screens and have a quality “better than any other bar we know of anywhere in the UK”. Meanwhile, the company’s Shooters bar at its Bierkeller site in Cardiff was named best sports bar in Wales at the first Welsh Hospitality Awards. Judges said the venue gave fans the chance to watch their sport in a “fabulous atmosphere with a great menu of food and drinks”. Burning Night Group chief executive Allan Harper said: “It’s always been our aim to put on great nights of sport for fans, giving them that whole package of live coverage, food and drink, so to be recognised for that is fantastic.”

Azzurri Group launches Radio Alice pizza concept: Azzurri Group, which owns and operates Ask Italian, Zizzi and Coco di Mama, is backing new pizza concept Radio Alice, which has launched in a former school building in Hoxton Square, east London. The concept is the brainchild of brothers Salvatore and Matteo Aloe, who have united with Gail’s Bakery co-founder Emma King, who will oversee the project. The Aloes own Berbere, which operates five pizzerias in Italy. They use mother yeast and stone-ground flour to produce dough that is left to ferment at room temperature for 24 hours, producing a pizza base that is crispy outside and soft inside. They then cook the base and add organic, seasonal toppings. The 113-cover restaurant, on the former site of the Monikers pub, also offers Italian organic wine alongside beer from Brew Fist in Italy and London’s Kernel Brewery. Radio Alice is named after an Italian pirate radio station from the 1970s. Salvatore Aloe said: “Radio Alice was fiercely Italian and deeply rooted in the rebellious. Their proud spirit and unconventional approach have always been an inspiration to us, and we hope today’s Radio Alice Hoxton will be much the same. We want our food to reflect that attitude so the ingredients are from traditional organic and slow-food producers in Italy and Britain.”

Bistrot Pierre eyes Southport as it opens 17th site, in Altrincham: Private equity-backed restaurant group Bistrot Pierre has opened its 17th site, in Altrincham, Greater Manchester, while it is also looking to launch a restaurant in Southport, Merseyside. Bistrot Pierre is understood to have made a deal to take over a site in Lord Street, Southport, with an official announcement expected soon. CBRE UK Property Management confirmed an offer had been made for a 23,000 square foot site formerly occupied by Russell and Bromley. If the ten-year deal goes through, rent for the building would cost the chain £70,000 a year, while it would pay additional business rates of about £48,000, the Champion reports. Bistrot Pierre’s 170-cover Altrincham restaurant is in The Stamford Quarter shopping centre and features floor-to-ceiling windows, French-styled interiors, a bar area, and outside seating. Bistrot Pierre, founded by Rob Beacham and John Whitehead in 1994, received £9.8m from private equity firm Livingbridge last year to support its expansion plans.

New company Aria Leisure eyes former Quill site in Manchester for concept launch: Aria Leisure, a new company founded by Allied London commercial director Andrea George, Fazenda co-founder Terence Langley, and Leeds-based entrepreneur James Coubrough, is eyeing a site in Manchester in which to launch a new concept. A licence notice has been placed in the window of 20-22 King Street, which was last occupied by ill-fated fine-dining restaurant Quill, which closed in June less than a year after its launch. George confirmed her plans to launch a restaurant at the site, but said she could give little more away at this time. However, she told Manchester Confidential Aria Leisure had secured a chef and nailed down its new concept. Quill opened in October 2015 following a £1m investment and was known for its multi-course taster menus priced at £85 or £150 with matching wines.

Leon opens Oxford restaurant, 42nd site: Natural fast food brand Leon has opened its 42nd site, this time in Oxford. The 136-cover restaurant has opened in Cornmarket at a site formerly occupied by HMV, creating more than 30 jobs. The venue is set over two floors and features a children’s play area, while it will feature Leon’s Christmas menu, with new dishes made in collaboration with chef and food writer Gizzi Erskine. The restaurant is open daily from 7am to 10pm, and 8am to 9pm on Sundays, offering a 15% discount to students and NHS staff. Leon chief executive John Vincent told The Oxford Times: “We make naturally fast food that tastes good, does you good and is kind to the planet.” The new site is only Leon’s sixth venue outside London but a £19m funding deal from OakNorth Bank secured in the summer will be used to fund 50 openings in the next four years. Vincent said he plans to open in “high streets, railway stations and shopping centres, wherever people need us”. He founded Leon with Henry Dimbleby in 2004. The next site due to launch is at London Bridge.

Leaf Hotels acquires third Kent site: Hotel operator Leaf Hotels has added to its expanding portfolio with the acquisition of the 80-bedroom Best Western Clifton Hotel in Folkestone, Kent, on a long lease. Agent Fleurets acted on behalf of the long-standing owners Mr and Mrs Hail. Leaf Hotels managing director Kanagaratnam Rajamenon said: “We are delighted to have acquired the Best Western Clifton Hotel and look forward to building on the foundations laid by Mr and Mrs Hail as we finalise plans for the refurbishment of the hotel next year.” Fleurets head of hotels Paul Hardwick said: “The Hails have successfully grown the Best Western Clifton Hotel and are handing over an excellent opportunity we are sure will complement Leaf Hotels’ existing portfolio.” Leaf Hotels also owns the Ramada Hotel in Dover and the Holiday Inn Express in Canterbury.

Turtle Bay to open Croydon restaurant next month at former nightclub site: Caribbean restaurant brand Turtle Bay will open a venue in Croydon next month on the site of former nightclub Tiger Tiger. The 168-cover venue will open in High Street on Sunday, 29 January following an £800,000 refurbishment, creating more than 50 jobs. A special “audition day” for prospective staff members will take place on Tuesday, 13 December, which will include applicants being asked to limbo dance. A Turtle Bay spokesman told the Croydon Advertiser: “The mission is to capture the spirit of celebration the Caribbean is famed for around the globe – making customers happy by delivering a hedonistic combination of joyous food, wicked drinks and a fun, relaxed atmosphere. The Croydon restaurant will be no exception with its vibrant, welcoming and sociable atmosphere and bespoke design. In fact the team have pulled out all the stops for their first restaurant in the area, which will be a beach shack-inspired ray of sunshine.” Turtle Bay, which is backed by Piper Private Equity, was formed by Las Iguanas co-founder Ajith Jaya-Wickrema and has 34 sites across the UK, having opened its first site in Milton Keynes in 2010.

Cote sets sights on Shrewsbury: French brasserie Cote has set its sights on opening in Shrewsbury town centre. A planning application has been lodged with Shropshire Council for a change of use from retail to restaurant for a unit in Princess House, The Square. The plans include an outside seating area in front of the restaurant and three retractable verandas, the Shropshire Star reports. Katie Priest, who prepared the design and access statement on behalf of Cote Restaurants, said turning the empty unit into a restaurant would have several benefits for the town centre. Her report stated: “The proposed use would generate a significant amount of footfall in its own right and would be open from breakfast as well as during the daytime and evening. The proposed change of use will make positive use of a vacant retail unit that will further support the economy and vitality and viability of Shrewsbury.” Cote currently has 80 sites in the UK.