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Morning Briefing for pub, restaurant and food wervice operators

Tue 20th Oct 2020 - Update: Shiva, working lunches, Ireland, Britvic and Escape Hunt
Shiva to open two boutique hotels in central London this month: Shiva Hotels will unveil its new purpose-built boutique hotel and restaurant – The Guardsman – in Buckingham Gate on Friday (23 October) and Covent Garden “lifestyle luxury hotel” Middle Eight on Wednesday, 28 October. The Guardsman in Vandon Street promises guests the “atmosphere, discretion and personal service usually associated with a private members’ club”. It will have 53 bedrooms, while the top three floors will house six exclusive residences comprising a selection of one, two and three bedrooms. Dining and socialising spaces are set across two levels. At the core of the hotel is the restaurant, which is open to residents and their guests only. Select British classic dishes will always be available but menus draw on seasonal produce from selected purveyors, London markets and organic farms, with no rules on specific dining times. Meanwhile, Middle Eight is to make its debut after being originally slated for a spring opening in Great Queen Street. The site, led by founder Rishi Sachdev, has 168 rooms, across five categories, also houses 12 suites. Middle Eight also has two restaurants – Sycamore Vino Cucina offers an all-day Italian-inspired menu and The Balcony overlooks Sycamore and is more secluded, offering a global menu in a tranquil setting. An area called QT has a street entrance and is described as “a destination in and of itself”. QT will host private events for now but in the future it will be a bar and a venue for comedy and music, and has a screening room for video art and performances. 

Working lunches in pubs and restaurants could be exempt from lock-down restrictions: Working lunches could be exempt from covid lock-down restrictions. Meeting people inside pubs and restaurants in tier two and tier three areas such as London, York and Manchester is not allowed as part of efforts to try and contain the spread of coronavirus. But No 10 and local authorities suggested that such meetings were permitted so long as they are for “work purposes”. Government guidance stipulates that up to 30 people from different households may meet indoors for work purposes, as long as the place they are meeting is set up to follow covid guidelines. A Number 10 spokesman said that while current guidance advises people to limit their social contact and work from home as much as possible, “people are permitted to meet indoors for work purposes in high or very high areas”. Will Beckett, co-founder of steak restaurant chain Hawksmoor, told The Daily Telegraph: “It’s entirely unclear whether it’s allowed. Definitively, it would have a positive impact on the economy if it was deemed to be allowable, but it seems to be a recipe for a loophole.” Kate Nicholls, chief executive of UKHospitality, added: “It is unclear, it’s a real grey area. The government has given an exemption for business meetings up to 30 or meetings or gatherings that are deemed necessary for work purposes, but it’s provided no guidance on where those meetings can take place. We’re asking for urgent clarification because in central London, if the working lunch is gone, there’s no trade.”

Ireland re-enters six-week lock-down: Ireland’s prime minister has confirmed that the country will return to the highest level of coronavirus restrictions from midnight on Wednesday. Micheal Martin warned that the evidence of a potentially grave situation in the weeks ahead was now “too strong” to ignore. He asked everybody in Ireland to take the threat of covid-19 seriously – and stressed that a “herd immunity” approach was not possible. However, Martin added that a full lock-down is “simply not a realistic option”, meaning that some exemptions to the country’s Level 5 restrictions will be made. Although non-essential shops will be forced to close, schools and childcare facilities will be allowed to remain open. “Even as the winter comes in, there is hope, and there is light. If we pull together over the next six weeks, we will have the chance to celebrate Christmas in a meaningful way,” he said.

Britvic signs deal for 20-year Pepsi bottling agreement: Britvic has reached agreement with PepsiCo for a new and exclusive 20-year franchise bottling agreement for the production, distribution, marketing and sales of its carbonated soft drink brands – including Pepsi, 7UP and Mountain Dew – in Great Britain. The new agreement extends the relationship, which commenced in 1987, to 31 December 2040 and includes the Rockstar energy brand, for which Britvic will take responsibility from 1 November this year. Britvic also announces today its intent for all plastic bottles in GB to be made from 100% recycled plastic (rPET) by the end of 2022 – three years earlier than originally planned, and ahead of the previous target of 50%. This will cover the entire GB portfolio of Britvic-owned and PepsiCo brands, and demonstrates both companies’ commitment to sustainability and to a healthier planet. Simon Litherland, Britvic chief executive, said: “I am delighted that we have formally extended our relationship with PepsiCo in Great Britain for a further 20 years. The powerful combination of the Britvic-owned and PepsiCo portfolio offers customers and consumers a broad range of great-tasting, trusted brands for any occasion. We are excited to add Rockstar to our offering and look forward to working together to grow the brand. The announcement of our intent to move to 100% recycled PET in GB by 2022 is a significant moment for Britvic and our partnership with PepsiCo, demonstrating our joint commitment to protecting the planet today and for future generations. Both Britvic and PepsiCo have sustainability at the heart of their business strategies, and we will continue to work together to deliver on our shared ambition to protect the environment and offer healthier choices in the years ahead.”

Escape Hunt completes acquisition of Middle East franchise: Escape room operator Escape Hunt has completed the acquisition of its Middle East master franchise partner, Escape Hunt Entertainment subject only to the formal registration of the sale which is scheduled to take place on 22 October 2020. The Dubai site is re-opening for business today under Escape Hunt’s control. EHE owns and operates an escape room site in the Galleria Mall in Dubai and also has sub-franchise relationships for four sites in the region. As a result, the Dubai site will become an ‘owner managed’ site alongside the company’s existing estate in the UK and the sub-franchisees will become direct franchisees. Together with Basingstoke and Cheltenham, which are currently in build, this takes the total number of owner managed sites to 13 with a further two sites in legals. The management team from EHE has been retained and will continue to run the business in the area. The company stated: “The acquisition is expected to significantly increase the contribution from the region. In 2019, the Dubai site had turnover of approximately £490k and we would expect to run the site on similar operating metrics to a UK site. In addition, with the Dubai site becoming a 100% beneficially owned subsidiary, Escape Hunt’s revenue share from the Middle East sub-franchisee network will rise from 5% to 10%. In the light of covid-19, the Middle East regional sub-franchisee network is being reviewed and sites will either re-open and remain part of the network, or new partners will be sought to expand the regional network in time.” Richard Harpham, Escape Hunt’s chief executive, added: “We are excited about the prospects for the region and believe the Dubai site in particular has the potential to deliver very attractive returns from a high quality, attractive venue in the Galleria Mall as was being demonstrated prior to the covid-19 pandemic. We are delighted that Abdulwahab Bahrawi and his team are now part of the group and expect them to play an increasingly prominent role in driving our international franchise business in the future.”

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