Luke Johnson – landlords offering deals up to 50% lower than previous passing rents with significant contributions: Sector investor Luke Johnson has said landlords are offering deals of up to 50% lower than previous passing rents and there will be some “remarkable” deals for those with the belief to expand. Speaking at the final Propel Multi Club this year, he said: “Unquestionably, the whole landlord-tenant relationship is shifting dramatically. I’ve one business that is still expanding and has quite some big ambitions for next year and the deals landlords are offering are getting interesting. We are seeing rental levels of 30%, 40% or 50% lower than the previous passing rents with significant landlord contributions. There’s going to be some remarkable opportunities for those that have the funding and the confidence as well as the belief and demand to expand.” Johnson said once the industry has “got its collective confidence back on some sort of stable footing”, one issue it needs to go hard at is business rates. He added: “If occupancy costs are going to fall, which I feel over time they will – 30%, 40%, 50% – then the rates must jolly well fall in line with that or more – the £28bn or whatever retail ends up paying is wildly disproportionate and unaffordable to an industry that has been shattered like ours. I accept the government is going to have a big black hole in tax take but unless it wants to lose half of the industry’s whole contribution – plus other taxes it contributes such as VAT, PAYE – then business rates is the one to go for personally.” Johnson said he also believed there’s a “lot less faith in the idea that lockdowns really work” and “creative initiatives” were needed to argue the case. He added: “It’s not about civil unrest, it’s about using clever techniques to apply pressure. I doubt there is a single person in our industry who is not suffering mentally, if not physically, over this – fear of job loss, business being destroyed, pressure and anxiety. The debate is unequal, and we need to start filling in the vacuum and mounting the argument. We need to make that intellectual and even academic argument because the government is not going to do it for us. If it’s another three months of effective closure and the whole of Christmas demolished then big chunks of the pub, restaurant and leisure industry are facing an existential crisis, and we cannot do nothing and allow this to happen.”

Paul Charity to explore how pub landscape has transformed in a generation as part of latest Propel Premium column: Propel managing director and founder Paul Charity will explore how the pub landscape has been transformed in a generation as part of this week’s Premium Opinion, which will be sent to subscribers on Friday (20 November) at 5pm. “It's almost laughable how misguided public perceptions can still be about pubs,” he writes in his 1,000-word essay. Propel Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out, discounts to attend Propel conferences and events, and regular columns from Mark Wingett. An annual premium subscription costs £395 plus VAT for operators and £495 plus VAT for suppliers. Email anne.steele@propelinfo.com

 

Propel’s ‘lessons of lockdown’ video series to feature Shereen Ritchie next: In the latest Propel “lessons of lockdown” 15-minute video, Ann Elliott talks to Shereen Ritchie, UK managing director for restaurants at natural fast food brand Leon. Ritchie talks about the lessons of the first lockdown that she is applying to this lockdown. The video will be released at 9am on Monday (16 November).

 

JD Wetherspoon shuts all but one of its Scottish pubs within tier three: JD Wetherspoon has shut its Scottish pubs, besides one, within tier three areas as it waits for restrictions to ease. Chairman Tim Martin hit out after first minister Nicola Sturgeon announced Scotland's tier system and criticised more general UK covid-related restrictions for the pub industry after revealing like-for-like sales for the 15 weeks to 8 November fell 27.6%. Now 46 of its 61 pubs in Scotland have closed. The Auld Brig in Irvine is the only pub within the tier three restrictions to remain open because it is still attracting business through its base at the Rivergate shopping centre, reports The Herald. Under tier three restrictions, pubs and licensed premises can remain open but must close at 6pm and are banned from serving alcohol. 

 

Goodbody – food-led sites are bright spot in weak October ahead of second lockdown: Goodbody leisure analyst Paul Ruddy has said food-led operators have a chance of breaking even despite weak October figures across hospitality as England looked towards its second lockdown. CGA’s Coffer Peach tracker for October stated the number of open sites reduced to 83% from 88% in September. Like-for-like sales across all outlets were down 28.9% with total sales down 33.9% (like-for-likes were minus 14.7% and total sales were minus 20.3% in September). Pubs and pub restaurants like-for-likes dropped 31.9%, restaurants fell 19.5% and bars plummeted 52.6%. Commenting on these results, Ruddy said: “This is a weak month of data as increasing covid-19 cases and government restrictions hit the sector. However, for the food-led operators, the small positive is most should have been able to break even in the month. We have limited data from operators, but JD Wetherspoon noted like-for-like sales down 27.6% for the 15 weeks to 8 November, a marked slowdown from the minus 15% reported for the first 11 weeks. The 27.6% fall included a weekend of zero sales, but Wetherspoon appeared to underperform the overall market in October, likely due to its drink-led focus (60% of sales), but also owing to the fact it passed on the VAT cut to customers. Young’s noted trading in its managed house division had been encouraging since the end of September, at 73% of last year's levels (end of September to 5 November). The sector faces more challenges in the short term given England is largely closed, and restrictions remain in place in Scotland. However, the furlough scheme being extended provides an offset and the operators in our coverage have sufficient liquidity to see them through this lockdown. A key question in the short term is what sort of restrictions will be in place for the busy Christmas period.”

 

Nightclub bosses urge PM to deliver finance package to prevent ‘tsunami of job loses’: Nightclub bosses have written to prime minister Boris Johnson asking for a financial package to prevent a “devastating tsunami of job losses”. Nightclubs in the UK have now been closed for eight months due to the pandemic with no confirmed reopening date, while bars and pubs have been allowed to reopen since the first lockdown. The #SaveNightclubs campaign, which is a nationwide coalition that represents more than 100 nightclubs and thousands of staff, has written the open letter urging the government to “act now or permanently lose the country’s nightclub industry and the enormous economic contribution it makes to the UK”. The letter stated these venues are likely to be closed for an entire year, evidenced by the second lockdown and the extension of the furlough scheme until March. It read: “Unlike hospitality and gyms, which were able to trade over the summer months, we have not been able to open at all, resulting in zero revenue since March. Venues are facing mounting rent bills, ongoing running costs and the prospect of business rates in April 2021. We urge the government to prevent a devastating tsunami of job losses, a wipe-out of future economic contributions and further ruin to towns and cities across the UK, which are already on their knees.” The letter said more than 70% of people working in nightclubs are self-employed and, therefore, could not receive furlough pay due to their ineligibility. It also asked the government to introduce protection from eviction for nightclubs during and immediately after the crisis, and extend business rates relief to April 2022. The letter was supported by a number of nightclub operators including G1 Group and Tokyo industries and trade group the Night Time Industries Association. Last month, a survey by the campaign group found four in five nightclubs (81%) will be shut by Christmas unless the government urgently intervenes.

 

Delivery set to surge over Christmas: Pubs and restaurants that offer a takeaway or delivery service can expect a surge in demand during the festive period, especially if they are forced to close, according to research by KAM Media. A snap poll by the research consultancy found 24% of respondents would consider purchasing a takeaway from their local pub or restaurant over the upcoming Christmas period. This figure rose to 36% if their local hospitality venues were forced to close. A quarter (25%) said they would consider a takeaway Christmas dinner on Christmas Day specifically, if venues were forced to close. One fifth (20%) said they would consider purchasing a “ready-to-cook Christmas meal kit” from their local pub/restaurant if they were closed on Christmas Day – this option was particularly popular with Generation Z and younger Millennials (26%). A quarter (25%) said they would consider purchasing a “New Year’s Eve ‘celebrate at home’ kit” from a local pub or restaurant. Meanwhile, 22% said they would consider visiting a pub or restaurant for breakfast or brunch on Christmas Day while a quarter (24%) said they would consider celebrating New Year’s Eve earlier in the day this year, by visiting a pub or restaurant for lunch instead of dinner. A quarter (26%) would consider buying a gift voucher for a pub or restaurant if venues aren’t open – and 22% would if they are. KAM Media managing director Katy Moses said: “Obviously, things can change and lockdown measures are unpredictable but the results are very positive, showing a significant proportion of consumers are very likely to support the hospitality industry this Christmas even if venues are forced to close.” The full poll results are available here.

 

Sales boost for food and drink ahead of lockdown: Pubs, bars and restaurants saw a final flurry of sales in the run up to the second lockdown as consumers sought to enjoy meals and drinks out. CGA’s Volume Pool data showed food sales on the last two days before lockdown – Tuesday, 3 November and Wednesday, 4 November – were up 28% and 11% respectively on the equivalent days in 2019. These are the best daily comparisons since early September, when venues were still enjoying the halo effect of the government’s Eat Out To Help Out scheme. The strong performance is despite the closure of almost a third of Britain’s licensed premises ahead of lockdown, and widespread trading restrictions including a 10pm curfew. The figures are also a sharp contrast to food sales in the final days before hospitality’s first national lockdown in March. In the last two days before venues shut – 19 and 20 March – food sales were down by 69% and 74% year-on-year. Meanwhile, CGA’s Drinks Recovery Tracker showed year-on-year drinks sales were down by just 4% and 3% on the two days before the second lockdown. The final day of trading saw a major injection of sales for spirits in particular, with revenue up 32% year-on-year, compared with a 55% drop the previous Wednesday. Wine also enjoyed a bumper final day with sales up 25%, and beer and cider saw a strong final week too. Rachel Weller, head of consumer research and marketing at CGA, said: “The confident mindset is strikingly different from earlier in the year, when fears about infection kept many people at home, and it suggests people have become accustomed to the new normality of pubs, bars and restaurants. There is a long way to go before sales consistently reach pre-pandemic levels, but the enthusiasm of consumers before lockdown bodes well for the time when venues can trade again.”

 

London hotel market continues to struggle as occupancy stays flat: The London hotel market is continuing to struggle with occupancy remaining flat in October from September and average daily rates declining, according to the latest data from STR. Year-on-year declines remained significant with occupancy down 66.5 percentage points, at 29.3%. This compares with an occupancy rate of 29.2% in September. Average daily rate was down 44.8 percentage points year-on-year in October, to £89.11. This was lower than the £93.55 recorded in September. Meanwhile, revenue per available room in October dropped 81.5 percentage points year-on-year to £26.07.

 

Police apologise to coffee shop after mistaken warning for flouting rules: Police have apologised after a North Shields coffee shop was wrongly accused of flouting covid-19 rules. Wheel House Coffee Bar closed after police threatened to fine bosses for selling takeaway drinks – despite being allowed under current government lockdown rules. Northumbria Police admitted officers “issued the incorrect advice to the owner” but insisted it was quickly clarified. However, the shop lost half a day's takings, while staff were forced to deal with the shame of being wrongly branded rule-breakers. “We do completely understand the police thought they were doing what was correct, however in the end they were wrong,” said co-owner Leigh Elliot. “It was upsetting and embarrassing to be told we were essentially breaking the law, in front of our customers.” The venue claimed police called later that afternoon advising it to “open as usual” until lawyers could check up on the rules. Elliot added: “It was so disappointing they did not know the correct law when they were enforcing it. And disappointing further for them to say they have apologised when we do not feel we have had a real apology really.” Police had reportedly told management it was banned from serving from the shop's door.

 

Job of the day: COREcruitment is supporting a quick service restaurant business as it looks to appoint a European digital business manager. The position will be based in London, paying up to £55,000 and the position requires business level language skills in either French or German as well as fluent English. The European digital business manager will be responsible for overseeing the digital performance of the European business. Reporting directly to the European finance director, this role will provide key insight and analysis while managing key third-party suppliers, including the appointed delivery partners, to ensure the restaurants execute a best-in-class delivery experience. The European digital business manager will focus on four key areas – digital performance insights and analytics, CRM and digital marketing data, delivery partnership management and digital operations performance. Anyone interested can email Oliwia@corecruitment.com

 

Caffe Nero had been trading at 55% to 65% of pre-pandemic levels in recent weeks: Caffe Nero had been trading at 55% to 65% of pre-pandemic weeks before the second lockdown – and is forecasting a funding requirement of £26m. The company, which currently operates 800 sites across the UK, has also said it doesn’t consider 69 of its outlets, in its recently launched company voluntary arrangement (CVA) proposals, to be viable based on historical performance and expectation of future trading. These are thought to include central London-based sites in Piccadilly Circus, Tottenham Court Road, Central St Giles and Covent Garden (Maiden Lane). It is understood prior to the recent takeaway-only restrictions, overall sales in recent weeks were between 55% and 65% of levels prior to the pandemic, which the company said represented an “unsustainable drop”. Some stores are understood to be trading at as little as 25% to 40% of pre-covid levels. After taking advantage of support provided by the government, between March and September the business is thought to have lost £110m of sales and £36m of Ebitda versus the same period in the prior year. Propel understands even with the significant and ongoing actions taken by the management team to mitigate the impact of the pandemic, the business is currently loss-making and the directors are forecasting a funding requirement in excess of £26m, hence the CVA move. Propel understands if the CVA proposals, which look to move the majority of the group’s sites and concessions to a turnover-based rent, are approved when voted on, on Monday, 30 November, the group’s shareholders will make available a minimum of £5m of new funding to the company, to allow it to meet its obligations under the CVA. Propel understands landlords will receive a payment of approximately 30p in the pound in respect of landlord/non-critical creditor arrears, which is thought to be more favourable than is typical.

 

BrewDog secures £25m CBILS: Scottish brewer and retailer BrewDog has secured £25m through the Coronavirus Business Interruption Loan Scheme (CBILS) to help it through the coronavirus pandemic. The company updated on its position as it filed its accounts for the year ending 31 December 2019. It stated: “As a result of the covid-19 pandemic, the company has conducted an assessment on the potential financial and operational risks to the business. Despite the potential impact across the business, the directors do not currently expect any impairments due to the headroom available when an impairment test was undertaken at the year-end. Subsequent to the year-end, the company raised £3.3m through the issue of a bond on 22 January 2020 paying 6% interest (5% in cash and 1% in beer). The company also converted a £5m repayable, on demand, loan into a structured-term loan, repayable in quarterly equal instalments over ten years. Interest will be calculated quarterly and charged at 2.1% per annum over the base rate. Furthermore, the company entered into an invoice financing arrangement, which states the company can obtain a pre-payment of up to 90% of outstanding accounts receivable in the UK, up to a facility limit of £20m. It should be noted the agreement does not contain any financial covenants that the company is to adhere to. The company also secured a £25m CBILS loan – repayable over three years.” Co-founder James Watt said: “2020 has been challenging all round so far with covid-19 having a big impact on businesses all over the planet. Despite the difficulties, we have managed to weather the storm better than expected with very strong grocery sales and very strong online sales compensating for the temporary closures of our bars and the closure of our on-premises wholesale channel.” As previously reported, BrewDog lost £8m in the first half of 2020 with revenue down about £20m against budget. For the year ending 31 December 2019, group revenue rose to £214.9m, compared with £171.6m the previous year. Adjusted Ebitda increased to £17.1m from £7m the year before. The company made a pre-tax profit of £1.1m, compared with a loss of £576,000 the previous year. Sales in its UK bar division rose to £47.1m, compared with £34.9m the year before. The division made a loss of £601,000 compared with a loss of £418,000 the previous year. 

 

Yellowwoods ups stake in Wahaca: Yellowwoods, the investment vehicle that backs Nando’s, has upped its stake in Wahaca, as part of the Mexican restaurant brand’s recent restructuring. According to The Telegraph, the Yellowwoods, which is owned by Dick Enthoven, the billionaire South African behind Nando’s, has injected a further £4m into Wahaca. It is thought that now gives the investment vehicle a majority stake in the Mark Selby-led business, which last month secured approval for a company voluntary arrangement (CVA) that saw the company close 11 of its circa 25 sites. The CVA would also lead to lenders to and shareholders of the company writing off £25m of debt and injecting £5m of new money into the business to put it on a more sustainable footing. Lenders led by the taxpayer-backed NatWest will also see roughly 60% of their exposure, or £13m, written off, while shareholders are writing off the entirety of the £12m they are owed by the company. Selby told Propel: “Yellowwoods has supported us for years and throughout this covid pandemic and we are all focused now on getting through the current lockdown and beyond. Our main energy as a team is on being the most sustainable restaurant business out there and we are excited about the future.” Nando’s UK operations, which encompass more than 300 restaurants, are headed up by the tycoon’s son, Robby Enthoven. Meanwhile, Propel understands Matt Heather, formerly of Mitchells & Butlers (M&B) and Pho, has stepped down as Wahaca’s operations director. Heather joined Wahaca at the end of 2019. 

 

Boston Tea Party to take ex-River Cottage site in Bristol: All-day dining casual cafe brand Boston Tea Party is to consolidate its estate in Bristol, with the closure of two sites and a move into larger premises, formerly occupied by River Cottage Canteen. Boston Tea Party will close its sites in the Whiteladies and Clifton areas of Bristol to move into the ex-River Cottage premises at the top end of Whiteladies Road, in St Johns Court. Staff from both closed sites will move to the larger premises, which are expected to open next year. The River Cottage site closed at the end of March after seven years of trading. Boston Tea Party currently operates 22 sites, with two openings in the pipeline in Lichfield and Worthing. In an update to Companies House last month the business said it had modelled a conservative trading scenario post-lockdown, which would initially be at 30% of previous levels. As a result, the business said it had been trading ahead of its funding model, which provides it with a “considerable cash cushion”. It agreed with bank Santander all covenants would be relaxed, with working directors taking a 50% pay cut. The group also received finance from the Coronavirus Business Interruption Loan Scheme, on the basis trading would gradually return to normal levels over a two-year period.

 

Deliveroo lines up former Worldpay CFO as non-executive director: Deliveroo has lined up former Worldpay chief financial officer Rick Medlock to become a non-executive director and chair its audit committee as it continues preparation for a mooted $2bn-valued initial public offering (IPO), reports Sky News. Medlock’s experience spans several tech-focused public companies. He is a non-executive director of medical devices maker Smith & Nephew, and has chaired audit committees at Sophos, a provider of cybersecurity services, and Thus, the telecommunications group. Last month it was reported Deliveroo had given JP Morgan the mandate, alongside Goldman Sachs, to manage its IPO, which could be unveiled within months. A float on the London Stock Exchange, which would be valued at $2bn, could come as soon as the first quarter of 2021. During the summer, Deliveroo ended a nine-month search for a permanent finance chief by appointing Adam Miller, a former executive at the travel group Expedia, to the role – a move that stoked speculation about its IPO preparations.

 

Time Out Market CEO hints at return to Spitalfields plan: The chief executive of Time Out Market has hinted a previously rejected application to open a market on a Spitalfields site in east London could be revived and said London was one of just two major cities where he would consider opening multiple locations. Time Out’s first UK market will now open in Waterloo in 2022, but chief executive Didier Souillat told Property Week the business was open to looking for another location in the capital and could return to one it got rejected on. Souillat said: “The only cities that can handle two Time Out Markets are New York and London.” In 2018, Tower Hamlets Council’s development committee unanimously rejected plans for a 19,350 square foot market at the old London Omnibus stables on Commercial Street. But Souillat said: “I think the residents are now seeing how the concept can have such a positive impact and how it could add to the local community. What are you going to do with the space? Put in a warehouse or invite millions of people to visit this treasure of a place? We have not made our mind up yet and have to pause for the moment. I love Spitalfields, the area and building.” Last week the group announced plans to expand its global footprint with the opening of its seventh location, in Dubai, set for the first quarter of 2021. Time Out Market Dubai, which will be the first in the Middle East, is located in Souk Al Bahar and will span across 30,000 square feet.

TGI Friday’s confirms plans to launch cocktail-led bar and restaurant concept 63rd+1st: TGI Friday’s UK, the Robert Cook-led group, has confirmed it is launching a cocktail led bar and restaurant concept, named 63rd+1st. Designed to cater for a broad audience, the first venue under the new concept will open on the former Carluccio’s site in Cobham, Surrey, on 8 January. Inspired by the original Friday’s founded in 1965 in Manhattan, on the corner of 63rd Street and 1st Avenue, the concept will be a “visible departure from the iconic Friday’s brand but harks back to the same principles of classic cocktails, quality food and legendary atmosphere”. At the heart of 63rd+1st is the bar, while a New York-influenced menu will include a selection of sharing plates, salad bowls, and entrees celebrating both “surf and turf” with a focus on quality and provenance. Brunch will be served daily. Spanning 180 square metres, the Cobham restaurant will seat 96, with outdoor dining for an additional 20 covers. Further 63rd+1st restaurants will launch across the UK in 2021. Cook said: “This is an exciting time for the Friday’s business and a reflection of our long-term commitment to growth. We have seen a credible performance this year, despite the challenges of covid-19. We have been agile, responsive, and continued to innovate throughout 2020 and this is a further demonstration of our ambition. We also recognise in this new world audiences are becoming increasingly discerning and their attitudes towards food and drink are evolving. Naturally, we will adhere to government guidelines upon opening to ensure the health and safety of our guests and staff, but we are very optimistic about the potential of 63rd+1st and we see this as a huge opportunity to drive further growth, in tandem with the core Friday's brand in 2021.” It is thought sites in Canterbury, Harrogate and Cambridge are under discussion for the new concept.

 

Deltic asks government for £1m-a-month bailout: The Deltic Group is asking the government for a £1m-a-month bailout as it heads for a sale to private equity, the Mail on Sunday has reported. It added: “Deltic Group, which runs 52 ‘super-clubs’ around the UK including Pryzm and Atik, all closed due to covid-19 restrictions, will start assessing bids on Monday (16 November) from an initial 20 private equity firms and ten industry rivals after being put up for sale in October. Chief executive Peter Marks said he needs a ‘firm offer’ either to buy the company outright or invest alongside existing shareholders by the end of the month as he will run out of cash in mid-December. If no deal is reached, Deltic will be put into administration or a company voluntary arrangement insolvency process by consultancy firm BDO, which is leading the sale. Marks, who is a shareholder alongside other management and four property investors, said the firm was worth £80m pre-covid but investors’ bids are now likely to be far lower to reflect it burning through £700,000 a month to cover fixed costs while its clubs are shut. It has also accrued an outstanding rent bill of £8m. Marks and rivals, including Fabric founder Cameron Leslie and Ministry of Sound chairman Lohan Presencer, have asked business minister Paul Scully for support. Marks said his plea for a grant of about £1m per month is a third of the £3m Deltic contributed to the Treasury in taxes while it was trading successfully.”

Todiwala to close Café Spice Namasté after 25 years in business: Chef Cyrus Todiwala will close Café Spice Namasté, which is the longest-running Bib Gourmand restaurant in the Michelin Guide, at the end of January after 25 years in business. According to Bloomberg chief food critic Richard Vines, the chef is planning on opening a new restaurant in east London, after the closure of his site in Prescot Street, near Tower Bridge. Earlier this year, Todiwala left Tandem – his first restaurant outside London. The venue at Highcross Leicester shopping centre was launched as a joint project between the chef and Leicester-based Raphael Hospitality. Todiwala also operates Mr Todiwala’s Kitchen at Lincoln Plaza London in Canary Wharf and Mr Todiwala’s Kitchen at Hilton London Heathrow Airport.

Morley’s chicken shop continues expansion: Morley’s chicken shop is set to open a new site in Finsbury Park, having launched in Brick Lane last week. The franchised fried chicken store has more than 40 sites, which are mainly in south London but more are appearing in the north and east of the capital. Rapper Stormzy is known to be a big fan, having recorded a music video in one branch for his song Big For Your Boots. The Finsbury Park site has taken over the former Jerkmaica site in Stroud Green Road while the Brick Lane restaurant opened in the building that used to be Moo Cantina. Food is currently available for takeaway and delivery.

 

London nightclub begins crowdfunding to avoid closure: London nightclub Egg is crowdfunding to prevent permanent closure. As part of the Music Venue Trust’s SaveOurVenues campaign, the 900-capacity, four-floored club has set a target of £200,000, with the aim of keeping its doors open in 2021 and beyond. “Egg London have been a part of the music industry in London for the past 17 years,” organisers said. “We're crowdfunding because we need your help to save our venue. Like many other venues, this pandemic has destroyed the dance industry and we haven't been able to open since March. Our main achievement is to make sure we can keep up with our payments to our staff and rent, enough to get us ready for when we're able to open back up.” They added: “Our music venue risks permanent closure because of the coronavirus pandemic. No venue expected this to happen and it has caused all funds to be sucked into keeping staff and the venue secure over the past eight months. If we cannot cover these expenses then the venue will be permanently closed.”

Hakkasan closes eponymous New York outlet, plans third Ling Ling opening: Hakkasan Group has permanently closed it eponymous restaurant in New York after eight years in the city. A representative for the Hakkasan Group confirmed the closure, writing in an emailed statement: “We have made the difficult decision to close our location due to the ongoing impact of covid-19.” The Theater District spot has remained closed since the pandemic-related shutdown in March. Ownership posted a message on Yelp in April letting customers know the restaurant would be closed indefinitely, but were hopeful the establishment would reopen. The restaurant subsequently laid off all 95 employees. Hakkasan debuted in New York in 2012. Meanwhile, Hakkasan Group, in partnership with Atlantis, Dubai, has announced plans to open a third Ling Ling restaurant, at Atlantis, The Royal in Dubai. Currently, Ling Ling has two international locations, in Oslo and Marrakesh, with a fourth location slated to open in Mexico City in 2021. The Ling Ling concept emerged in the Hakkasan Group portfolio as a natural evolution of the original Ling Ling lounge tucked away inside most Hakkasan nightclub locations around the world. It takes inspiration from izakayas, offering craft beverages intentionally paired with Cantonese fare. “We’re enthusiastic at the prospect of bringing Ling Ling’s intriguing menus and unmatched late-night experience to a new frontier and could not ask for a better partner than Atlantis, The Royal,” said Angela Lester, executive vice-president of business development for Hakkasan Group.

Odeon hires advisers as it scrambles for cash injection: Odeon Cinemas has hired financial advisers as its US-listed owner scrambles to secure a cash injection. According to The Telegraph, the UK chain, which has been forced to shut during the second lockdown, is understood to be working with City crisis experts from Alvarez & Marsal. The future of Odeon, which employs 5,400 staff across 120 cinemas in the UK and Ireland, was thrown into doubt last month when owner AMC Entertainment warned there was a “significant risk” it could run out of money by Christmas. Although AMC’s cash reserves stood at $430m (£326m) at the end of September, it is burning through about $100m a month – despite most of its US theatres having reopened. Alvarez & Marsal has been drafted to forecast Odeon’s cash requirements while AMC holds crunch talks with lenders, according to City sources.

Virgin Hotels to open in Las Vegas in early 2021: Virgin Hotels will open its latest US property early next year, with the renovation and rebranding of the former Hard Rock Hotel and Casino. The hotel, which opens on 15 January, is about one mile east of The Strip. The hotel will offer more than 1,500 rooms and suites across three towers, and will offer 12 food and beverage options including One Steakhouse by brothers David and Michael Morton, Olives by celebrity chef Todd English, Casa Calavera by the Hakkasan Group, Kassi Beach Club from restauranteur Nick Mathers, and signature Virgin Hotels brands The Kitchen at Commons Club and The Bar at Commons Club. Virgin Hotels opened its first US property, in Chicago, in 2015, before adding hotels in San Francisco in early 2019, Dallas late last year, and Nashville this summer. However the owner of the San Francisco hotel served notice to terminate the management agreement with Virgin Hotels earlier this year, and it is no longer listed on the group’s website. 

Gleneagles decides to close until 31 January: The Gleneagles Hotel will close for 11 weeks after tougher lockdown restrictions were announced for Perth and Kinross. The hotel shut on Friday (13 November), when the region moved from level two to level three, until 31 January. It said its golf courses and membership facilities would remain open, subject to government restrictions. The hotel said it planned to protect all jobs during the closure. It closed for four months earlier this year as part of the UK lockdown. Gleneagles' managing director Conor O'Leary said: “Having worked so hard to provide a safe environment across our estate, we are saddened by this development, especially in the lead-up to Christmas – the highlight of our calendar for both team and guests. However, we're committed to taking the additional measures necessary to protect the health and well-being of everyone at Gleneagles, and to play our part in minimising covid-19 cases in the region.”

Hawksmoor launches complementary at-home delivery food range: Hawksmoor has launched a new at-home delivery menu with dishes that just need reheating. Hawksmoor has already been delivering its Hawksmoor at Home food boxes, which give customers the opportunity to cook a Hawksmoor meal from scratch but the Hawksmoor at Home Local offer puts the work back into the Hawksmoor kitchen and means customers only need to finish off dishes at home. Dishes from the new range must be ordered a day in advance and diners can expect the business’ famed steaks plus treats such as Old Spot belly ribs with vinegar slaw, roast scallops with white port and garlic, bone marrow with onions and sourdough, potted beef and bacon with Yorkshire puddings and onion gravy, and whole or half native lobster with garlic butter. Puddings, cocktails and wine are also catered for. Delivery is within London zones 1-3. 

Barclays upgrades Whitbread on vaccine news: Barclays has upgraded Premier Inn owner Whitbread to ‘Overweight’ from ‘Equalweight’, lifting the price target to 3,350p from 2,500p, arguing it’s one of the most attractive recovery plays in the sector following last week’s vaccine news. The bank said it now has a greater level of confidence that 2023 can see revenue per available room back close to prior levels. “Operating leverage is high, with every 1% change in revpar representing circa 6% to group earnings per share in 2022-23, so we upgrade earnings per share by 43%, leaving us 19% ahead of Bloomberg consensus,” it said. “With growing confidence around a post-covid future, we believe investors will increasingly look through the next six to 12 months to recovered earnings.” Barclays said, importantly, unlike some other hotel groups, it reckons the recovery back to pre-covid revpar for Whitbread could materialise on a two-year view. This would come from market share gains, the relative outperformance of budget hotels during a recession, and relative shelter from a structural shift in business travel due to 90% domestic/50% leisure/100% budget exposure. “In addition, we also think Whitbread is more attractive now than ever for its asset backing (31% to 77% potential upside) and Germany optionality,” the bank said.

Crosstown launches festive range: Crosstown, the artisan doughnut and speciality coffee concept, has launched its festive range. The limited-edition doughnuts, ice cream, cookies, and gifts, are available for next day delivery nationwide. The selection includes new vegan options – a cranberry and apple doughnut and chocolate and coconut ice cream. These sit alongside a magnum whisky cream liqueur doughnut, brandy butter and Nikka whisky ice cream. The expanded gifting range includes local craft beer, wine, freshly roasted coffee, and new Crosstown merchandise. Co-founder JP Then said: “This year’s Christmas celebrations are no doubt going to be quite different! But that shouldn’t stop us from allowing you to celebrate the festive season in style.”