Hawksmoor secures £4m loan, in talks to refinance bank debt: Hawksmoor, the Graphite Capital-backed steakhouse concept, secured a £4m loan to aid its liquidity during the crisis, and is in talks with its banking partner regarding a refinancing of its bank debt. In a filing to Companies House, the company said “trading in both reopening periods in 2020 was very strong and ahead of forecasts”. It also said it had taken appropriate measures to “safeguard the business during the periods of lockdown in the interests of all key stakeholders, including working with its banking partner to resolve potential covenant issues”. In the Companies House statement, the group said: “In July 2020, loan notes totalling £44.2m as at 31 December 2019 that had been due for repayment on 29 November 2019, had their maturity extended to 30 June 2022. A refinancing of the external bank debt held by the company's subsidiary was secured in August 2018, which extended the maturity of £6.8m of debt until 31 December 2021. As this maturity date falls within the 12-month period under consideration for the going concern assessment, the directors have commenced discussions with their banking partner and are confident the outstanding balance of £7.3m will be successfully extended given the group's historic trading performance. The group has produced base case cash flow forecasts for the 12 months following the date of this report, which assume a reopening of all restaurants from Easter 2021 and has modelled various sensitised cash flow forecasts allowing for a longer lockdown period (including to June 2021) and subdued trading for the next 12 months.” During the lockdown periods, the company said it took a number of steps to safeguard the business and its employees. These included securing additional funding to provide sufficient liquidity to pay suppliers and cover fixed costs as well as making use of the government’s Coronavirus Job Retention Scheme. 

Mark Wingett looks at fallout from Budget as part of Premium Opinion column, updated 1,600-strong multi-site operators list available for subscribers at end of March: Propel insights editor Mark Wingett looks at the fallout from the Budget, and whether it is nothing more than another short-term sticking plaster for the sector, in this week’s Propel Premium, which will be sent to subscribers at 5pm on Friday (5 March). Meanwhile Thomas Rose, co-founder of property advisory firm P-Three, explores the role a new generation of food halls will play in the recovery of town centres and why they are generating investor interest. There will also be the latest sector rumblings from Premium Diary. The updated Propel multi-site operators list will also be sent to subscribers at the end of March. The list is the most comprehensive guide that shows which operators are trading in the UK hospitality industry. The guide of circa 1,600 companies provides company names, the people in charge, how many sites each firm operates, its trading name and its registered name at Companies House if different, and what each business specialises in. In a new feature this year, there is a synopsis of what the business does and significant news associated with it. Propel managing director Paul Charity said: “The anticipation for this list has been phenomenal. Each and every day we have people asking when it will be ready. We’ve seen a lot of companies hit by the pandemic and no longer trading but there are many new operators with multiple branches or plans to go multiple that have been added to the Propel multi-site operators list. This is the most comprehensive list for UK companies with lots of useful information. It has taken three months to research and this list shows the biggest churn of companies we’ve ever seen – hundreds out of the list and hundreds in.” 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 Friday Wrap video series continues with Robin Rowland: Propel continues its new Friday Wrap video series on Friday (5 March) at 3pm. The new series, which is sponsored by innovative staffing solution provider Stint, sees Mark Stretton, former industry journalist and now head of sector PR firm Fleet Street Communications, and Propel insights editor Mark Wingett discussing this week’s key issues facing the UK’s hospitality sector, with a leading sector operator or expert. This week they are joined by Robin Rowland, operating partner at investment firm TriSpan, and non-executive director at Fuller’s, Caffe Nero and UKHospitality, to look back at the Budget announcement and what immediate and long-term impacts it will have on the sector as it starts on the path of recovery. 

Hospitality market in new ‘guest-centric’ era and there’s no room for ‘mediocre’: The eating and drinking out market is entering a new “guest-centric” era, with operators able to get closer-than-ever to their guests to understand what they think, feel and say – and there is “absolutely no place for ‘mediocre”. These were just some of the findings from a webinar with senior figures from Azzurri Group, Bistrot Pierre and Nando’s, hosted by Propel and Yumpingo, the complete guest experience management platform. Bistrot Pierre chief executive Nick White said: “There is just no place for being mediocre – customer won’t let that happen. The whole sector will have to raise its game. There is no way that people can go out and not have a brilliant time; we just can’t let that happen.” The conversation examined the changes these companies have delivered in the past six to 12 months, amid the evolving multi-channel nature of their brands, and how they have harnessed technology to “surface the voice of the guest” in their organisations. Joel Robinson, digital and technology director at Azzurri Group, said: “The fundamentals of the sector haven’t changed – we are still focused on delivering great experiences, supported by great food and drink. The change is the digital and tech capability, which is now an increasingly critical enabler or disabler of those fundamentals. These capabilities allow us to become more customer-centric; it’s about getting the right information to the right people and giving them some accountability.” Vikram Badhwar, global head of operations technology of Nando’s, added: “We are now getting a whole host of insights that we never used to and we’re working with our operators across the world to understand what information we can and should actually give. Within a shift, there’s a whole host of information we can share, but we need to understand what is meaningful and what is going to make a difference.” The webinar also explored how best-in-class brands are harnessing net promoter scores (NPS) as the leading metric in their businesses to drive their operations, teams and guest experience management, to deliver more happy guests and ultimately higher sales and profits. The conversation touches on many aspects of a comprehensive white paper authored by the senior team at Yumpingo. This new report, Recovery through the eyes of your guests: How innovations in experience management are driving business growth in a post-covid landscape, shines a light on how leading hospitality companies are establishing a successful real-time guest analytics and insights to drive their performance, in terms of both NPS and revenue growth. The webinar is available to watch and viewers can also download the white paper here.

UKHospitality vents fury as report reveals Test and Trace barely used check-in data from pubs and restaurants: UKHospitality has vented its fury after a report revealed check-in data from hundreds of millions of people who visited pubs and restaurants before lockdown was barely used by Test and Trace. The confidential report, obtained by Sky News, admitted the failure of the £22bn service to use the data for alerts or contact tracing meant “thousands of people” were not warned they might be at risk of infection, “potentially leading to the spread of the virus”. To make matters worse, when coronavirus data from venues was used, public health officials encouraged pubs and restaurants to contact customers directly – a breach of data protection law that could leave businesses facing legal action. The report said lack of guidance from Test and Trace for local public health teams on how to use the data left businesses “being asked to, or volunteering, to contact customers and visitors”. UKHospitality chief executive Kate Nicholls said: “It is incredibly frustrating. Our teams worked really hard to capture that data on the understanding it was going to be used should there be problems. To hear it wasn’t used, and in fact we had further restrictions without really any clear evidence that there was a problem with hospitality, is a major cause for concern.” Asked about the data protection law breaches, Nicholls urged regulators to remember businesses were acting on “unclear” guidance from the government, which changed the law in September to make it mandatory for certain venues to collect customers’ information. Test and Trace not only failed to use covid-19 data collected by venues, but also failed to employ the QR code alert system built into the £40m contact tracing app. According to the most recent Test and Trace figures, more than 100 million people have checked into venues with the app, but analysis by software developer Russ Garrett showed only 284 alerts have been sent for 276 venues. Asked about the failure to use check-in data to stop coronavirus spreading, a Department of Health and Social Care spokesman said alerts were sent to any user who had checked into a venue identified as “at risk”.

Government increases State Aid cap to £10.9m: The State Aid cap has been increased from £3.3m to £10.9m – giving more sector businesses access to government-backed grant schemes. Paul Scully, minister for small business, consumers and labour markets, confirmed the move on Twitter. He wrote: “We continue to back businesses of all sizes through the pandemic and I’m delighted to see the cap on covid-19 support grants raised to £10.9m. Extending our support will help retail and hospitality chains and the thousands of staff they employ.” It follows the Budget, where chancellor Rishi Sunak confirmed “restart” grants of up to £18,000 for hospitality businesses. The measures will see properties with a rateable value of £15,000 or under given an £8,000 grant; properties with a rateable value between £15,000 and £51,000 will receive £12,000; while properties with a rateable value of £51,000 or above will get £18,000. The cap is a legacy of the UK’s participation in the EU’s State Aid scheme, which controlled the way subsidies were dished out to companies by the government. Now the UK has left the EU, it has set out plans for new State Aid rules, but has so far largely used those applied by Brussels. 

Alcohol sales during lockdown provide Treasury with £800m windfall: Heavier drinking during the pandemic has landed the Treasury with a £800m tax windfall even though pubs, clubs and restaurants have been closed. The government netted £12.7bn in tax from alcohol duties, £800m more than it anticipated and up from £11.5bn in the previous year, according to the Office for Budget Responsibility (OBR). Britons switched to supermarkets and off-licences for their drinks, which more than offset the losses suffered by pubs, clubs and restaurants that were either closed, under curfew or faced covid restrictions on sales, said the OBR. It stated: “Alcohol duties have been revised up by £0.8bn (6.6%) this year relative to our March 2020 forecast – one of the few tax streams that has outperformed our pre-virus forecast. Total receipts have held up as alcohol consumption has been one of the few tax bases unscathed by the virus. Higher sales in supermarkets and other shops have more than offset the loss in receipts from the closures of pubs and restaurants for large parts of the year.” Will de Peyer, a former Treasury special adviser and director of Tendo Consulting, said there was a risk that trends of home drinking set during the pandemic could have an economic impact if they continue. He told The Telegraph: “Pubs and restaurants will be crossing their fingers that Britons’ love affair with alcohol continues when the hospitality sector is opened up again. If people get used to doing their drinking at home it could have serious consequences for the local.”

US suspends tariffs on single malt Scotch whisky: The US has agreed to suspend tariffs on UK goods, including single malt whisky, which were imposed in retaliation over subsidies to the aircraft maker Airbus. Tariffs will also be lifted on UK goods such as cheese, cashmere and machinery. The duties will be suspended for four months while the two sides seek a long-term settlement. On 1 January, the UK dropped its own tariffs on some US goods put in place over a related dispute about US subsidies to Boeing. It is the latest twist in a decades-old trade row that has seen the EU and the US target billions of dollars’ worth of each other's exports with taxes. Since the UK left the EU, it has been lobbying Washington to drop the duties on its own goods as it seeks a wide-ranging trade deal with the US. Trade secretary Liz Truss said the move “paves the way for an improved trading relationships with the US across the board”. Karen Betts, head of the Scotch Whisky Association, added: “The tariff on single malt Scotch whisky exports to the US has been doing real damage to Scotch whisky in the 16 months it has been in place, with exports to the US falling by 35%, costing companies more than half a billion pounds. So, everyone in our industry – from small companies to large – is breathing a sigh of relief.”

Job of the day: COREcruitment is looking for a head of finance and IT with a strong background in the food sector. Based in north London, this position will support growth for a food wholesale business and will pay up to £90,000. The head of finance will provide financial and IT direction. They will be partnering with the managing director and senior leadership team in the creation and implementation of the business strategy and operating plans. They will modernise the finance and IT functions so accurate accounting and high-quality reporting, coupled with effective use of data, can be used in supporting strategy formulation, decision-making and implementation. This role will take the finance and IT functions and the underlying processes and systems “to the next level”. Anyone interested can email Oliwia@corecruitment.com with their CV.

The Zetter Group set for expansion after takeover: London-based hotel and restaurant operator The Zetter Group is set for further expansion, after being acquired by hospitality investor Orca Holding for an undisclosed sum. The Zetter Group was founded by owners Mark Sainsbury and Michael Benyan 18 years ago, and comprises The Zetter Hotel in Clerkenwell and The Zetter Townhouses in Clerkenwell and Marylebone. Orca Holding said it now intends to retain and grow The Zetter Townhouse brand and is “actively looking” to open more properties in London and other key cities across the UK and Europe, such as Paris, Madrid and Amsterdam. Benyan said: “We are extremely proud of the culture of The Zetter Group, the hospitality brands we created and the impact they had on London’s vibrant hotel, restaurant and cocktail scene. The fact Orca Holding is passionate about The Zetter brand and has such exciting plans for its future, is great news for all involved and we wish it every success.” Laith Pharaon, chief executive of Orca Holding, said: “We see huge growth and development potential in The Zetter Group. This has been a difficult year for most hotels but the properties were previously achieving great success in their respective segments. This acquisition presents an opportunity for more strategic expansion of The Zetter brand and will benefit from Orca Holding’s global hotel development experience.” The Zetter Hotel launched in Clerkenwell in 2004, with the nearby 13-bedroom The Zetter Townhouse following in 2011. The 24-bedroom Marylebone Zetter Townhouse opened in 2015.

Marston’s seeks bondholder waivers again amid lockdown: Marston’s has again asked its bondholders for a number of waivers of its financial covenants to reflect the coronavirus lockdown. The company said it has formally asked holders of its secured class A notes for a “limited number of further technical waivers of its financial covenant” for the second half of 2021 and until January 2022. It is also seeking an extension of certain other technical waivers and amendments that were agreed to by the holders of its secured class A notes in May last year. Marston’s said the waivers/amendments being requested are “required solely as a consequence of the enforced temporary reclosure of its pubs in England, Scotland and Wales by the UK government and the devolved administrations, as a result of the covid–19 pandemic measures”. Noteholders have been asked to respond by 24 March and a meeting is scheduled for 26 March. Marston’s said the overall financial and liquidity position of the company and its subsidiaries remains sound – the group had £176m of headroom under its bank facilities as at 2 January 2021. Marston’s stated: “Marston's is confident that demand in its pubs will be strong once allowed to fully reopen (albeit with restrictions). As previously reported, the pubs performed well last summer after the first lockdown, outperforming the market in the 13 weeks to 3 October 2020 with like-for-like sales at the group's managed and franchised pubs 90% of the previous financial year during the corresponding period.” The group said it has previously received “overwhelming” support from its bondholders for certain waivers and amendments for 2020 within its secured estate, due to the government’s mandate to temporarily close pubs and restaurants across the UK.

Jamie Oliver's brother-in-law is let go as CEO of chef's business empire: Jamie Oliver has let his brother-in-law, Paul Hunt, go as chief executive of his business empire. Hunt had been considered a surprise choice to take over at the Jamie Oliver Group in 2014. It was during his tenure the chef’s Jamie's Italian chain fell into administration, after expanding from its debut site in Oxford in 2008 to 43 restaurants by 2016. The chain finally collapsed in the spring of 2019, putting 1,000 staff out of work. According to an internal company memo, former City trader Hunt, who has been married to Oliver's sister Anna-Marie for more than 20 years – agreed to leave his role this week. In a message to staff regarding Hunt's departure seen by the Daily Mail, Oliver wrote he had been brought into the group to “stabilise and reposition it”. The note said: “We’ve done that and as we looked ahead at the future of the business, we both thought it made sense to transition to a chief executive with global brand and technology expertise to lead the business into the next phase of its evolution. Massive thanks to Paul for his hard work and dedication.” Three years ago, Oliver had to respond to accusations Hunt was destroying his business, branding them “nonsense”. Insiders told The Times at the time they were “desperate to leave” the company after Hunt introduced a series of tough cost-cutting measures. However, Oliver wrote on Facebook: “There has been some negative press coverage with so-called friends of mine saying nasty, untrue things about Paul Hunt, who is the chief executive of my business. First, let me say the story is nonsense and I absolutely refute the picture they paint of Paul and my business. I’ve known Paul for years both as a loyal brother-in-law and loving father as well as a strong and capable chief executive who I charged with reshaping the business. He has radically transformed our business for the better.”

Rosa Thai’s Cafe brings plant-based sister concept back as virtual brand: Rosa’s Thai Veggie – the plant-based sister brand to restaurant group Rosa’s Thai Cafe – is to open as a delivery and takeaway-only kitchen, in London Fields, The launch on Wednesday (10 March) marks a return for the concept, which launched as a pop-up in 2018. Rosa’s Thai Veggie began as a three month-long vegetarian-only pop-up at its restaurant in Dean Street, Soho, and the decision to bring it back is a response to the “increased demand for vegetarian and vegan dishes witnessed across the group”. Initially launching in London Fields, Rosa’s Thai Veggie has ambitions to expand to further cloud kitchens and explore bricks and mortar opportunities down the line. The menu will combine reworked Rosa’s Thai Cafe classics, including founder Saiphin Moore’s signature stir-fried aubergine dish and tofu pad Thai, alongside new dishes including Chu Chi tempeh, a thick and creamy Panang curry with kaffir lime leaves and fresh chillies. Rosa’s Thai Cafe chief executive Gavin Adair said: “Our Rosa’s Thai Veggie pop up inspired a step change in our vegetarian and vegan dishes across the business several years ago. Saiphin continually pushes our food boundaries and it’s great to be able to give some of her most recent recipes a unique ‘home’ alongside existing Rosa’s classics.” Rosa’s Thai Cafe, which is backed by TriSpan, operates 22 sites across London, Liverpool, Leeds and Manchester.

Better burger brand Fat Hippo secures eighth site, in Liverpool: Better burger brand Fat Hippo has secured a new site in Liverpool, for an opening later this summer. The company, which was founded in 2010 by Michael Phillips, is understood to have secured the former STA Travel site in the city’s Bold Street. Phillips said: “The last year has been difficult for all businesses, especially the hospitality sector, but we couldn’t turn down the opportunity to bring Fat Hippo to Liverpool city centre. The building in Bold Street is the perfect location for our restaurant, and we’re excited to be able to welcome everyone for a taste of ‘the good kind of gluttony’.” Last month, the business opened a site in Headingley, Leeds. The company also operates sites in Newcastle, Jesmond, Durham and Nottingham and two outlets in Sheffield.

Danish espresso bar concept Hagen secures South Kensington site: Hagen, the Danish espresso bar concept, is set to open its third site in London, after securing a site in South Kensington. The company, which operates sites in Chelsea and Mayfair, has taken the former Flight Centre in Old Brompton Road, on a new ten-year lease. Taking inspiration from Copenhagen, the brand focuses on creating hygge spaces and serving premium speciality coffee. Tim Schroeder, founder of Hagen, said: “We’re excited to add such a historic part of London to our venues. We are looking forward to serving our Danish snacks, premium speciality coffee with a dash of hygge – al banco meets alfresco – to locals and commuters. For locals, by locals, as we like to say. Having the Natural History Museum, the Royal Albert Hall and the V&A as our neighbours is a real bonus, as they are all incredible historic buildings. Even though Hagen South Kensington will be new, we have taken a more sustainable approach by reusing materials and adding state-of-the-art operational systems to reduce our footprint. The past needs better connection with the future.” George Collison in the London restaurants team at Colliers acted on the South Kensington deal. 

Tossed appoints Ann Elliott as non-executive director, plans to start reopening this month: Tossed, the healthy-eating brand owned and led by Neil Sebba and Angelina Harrisson, has appointed Ann Elliott to its board as a non-executive director – and plans to start reopening sites this month, including two new stores. It is the first major appointment by Sebba and Harrisson since concluding a deal to acquire the brand about six months ago. Elliott will work with the executive team on strategy and growth, and provide the voice of the consumer at board level. Sebba said: “We first worked with Ann on the NHS Feed our Frontline initiative during the first lockdown, and were so impressed with her positive outlook, knowledge and experience in the industry. Her primary role will be to help shape and deliver our communication strategy over what is an uncertain trading period to come. Ann was our first choice for non-executive and we are excited to be working with her. We can’t wait to take this wonderful brand to the next level and beyond.” Elliott, who also sits on the boards of Hall & Woodhouse and Wireless Social, said: “Tossed is a great brand with lots of potential for the future and is perfectly placed in the dynamic and exciting fast-casual market. Neil and Angelina lead a great team.” Tossed will begin to reopen its locations in March, including new stores at Sun Street in Broadgate and New Providence Wharf, near Canary Wharf. Its seven other stores are located across the capital, at Baker Street, Bankside, Clerkenwell, Coleman Street (City), Gresham Street (City), Sheldon Square (Paddington), and St Martin’s Lane.

Mark Greenaway to launch takeaway pie and mash concept, in London: Chef Mark Greenaway is to launch takeaway concept, Greenaway’s Pie & Mash, in London. Greenaway will open the outlet in Villiers Street in Westminster on Monday, 12 April. With the number of pie shops in London dwindling – there used to be more than 110 and now there are barely 20 – Greenaway, who is opening a fine-dining restaurant in central London this summer, said he saw an opportunity to “bring back a classic to the capital”. Along with classic pies such as chicken, mushroom and tarragon; and beef short rib and pearl onion, the menu will also include new combinations that change with the seasons such as confit duck, lentil and orange; and braised lamb shank, pea and mint. As well as takeaway, pies will also be available via Deliveroo along with an at-home ready to cook range. Greenaway said: “Opening a pie and mash shop is not something I would have thought about doing a year ago. However, living and learning the culture here in London during lockdown has pivoted my thinking and almost excited me to look for other opportunities ahead of my signature restaurant opening In the summer.” Greenaway currently runs Grazing by Mark Greenaway at Edinburgh's Waldorf Astoria Edinburgh hotel.

Deliveroo to take advantage of ‘dual-class shares’ in London launch: Deliveroo founder Will Shu will take advantage of new dual-class shares when the company lists in London. Deliveroo said the share structure, which was touted by Lord Hill in his review of London’s listing criteria and endorsed this week by chancellor Rishi Sunak, would give Shu the “stability” to take decisions that would allow the company to fulfil its long-term vision. Lord Hill recommended the UK should introduce the shares, which give founders more control over the decision-making of their company. Deliveroo said the dual-class shares would be limited to three years, after which point the company will move to a “traditional single-class structure”. Shu said: “We want to be the definitive food company, bringing consumers the best choice of food, giving restaurants new opportunities to grow their businesses, and providing riders with great work. We are always focused on developing the best proposition for consumers, restaurants and riders and look forward to bringing our service to new parts of the UK as we continue to grow.” Lord Hill said: “One of the whole points of our listing review was to encourage more of the growth companies of the future to list in London. The changes we recommended would make it easier for more companies to follow Deliveroo’s lead, sending out a message that London is open for business.” Sunak said the reforms made were to demonstrate why the UK is one of the “best places in the world” to grow a business and added: “It’s fantastic Deliveroo has taken this decision to list on the London Stock Exchange. Deliveroo has created thousands of jobs and is a true British tech success story.” Deliveroo reported six months of consecutive profits throughout 2020 and continues its Editions delivery-only kitchens expansion, as well as its on-demand grocery offerings.

Harts Group confirms plans to open an El Pastor in Soho: Harts Group, which owns Quo Vadis, Casa Pastor and Barrafina in London, has confirmed it will open an El Pastor site in Soho. As revealed by Propel last month, the company has taken on the former Hix site in Brewer Street with plans to relaunch it as El Pastor Soho in June. Sam Hart said: “Soho is our spiritual home in many ways. It's where Fino launched, it's where we have Barrafina and Quo Vadis. We plan to do justice to the legacy of this special, magnetic site with El Pastor Soho and create wonderful experiences for 2021 and beyond.” In December 2019, Mark Hix closed his flagship restaurant Hix Soho after a decade in business blaming increasing rent costs. Sam and James Hart and Crispin Somerville launched the original El Pastor in Stoney Street, just off Borough Market, in December 2016. Taqueria and production site Tortilleria El Pastor opened in Bermondsey in April 2018 followed by Casa Pastor and Plaza Pastor in Coal Drops Yard, King’s Cross, in October the same year. El Pastor Soho will comprise an 86-cover ground floor and 60-cover basement.