Martin – I would go for a two-year immigration visa to ease staff shortages, job vacancies set to hit record high: Tim Martin, founder and chairman of JD Wetherspoon, has said he would personally go for a two-year immigration visa to ease the sector’s staff shortage. Martin told Propel’s Multi-Club Conference this month: “Just because you are not in the EU, doesn’t mean you can’t have a liberal immigration policy. The fact is we can have whatever immigration policy we want. I personally would go for two-year immigration visas. There is no easy way out in terms of recruitment. We have about 16,000 staff, so it is probably 15 per pub, or a few more, who have been with our company for more than five years. The average may be ten, 15 years, which gives you a structure that helps in terms of retention. It is very confusing because the experts said, like every previous recession, there is going to be high unemployment, and it didn’t happen. There are some good articles in the Washington Post on this, and they call it the ‘Great Reassessment’. Everyone during lockdown reassessed their lives and thought that if they were working to 1am and 2am, they could be more ambitious and instead look to have a job that allowed them to get home earlier, which has put pressure on the sector. But we are slowly emerging from it.” Meanwhile, job vacancies in the hospitality sector could hit a record high of 163,000 in December – a 279% increase on ten years ago – according to a study by student work app Stint. Having analysed the past ten years of vacancy data, Stint calculated this December there could be up to 75,000 more jobs available in the sector than two years ago. Although the number of vacancies in the hospitality industry has been increasing year-on-year, the pandemic has exacerbated this problem, with one of the key issues being bar staff, waiters and concierges not returning from furlough. Over the last six months of furlough, the number of people in the sector accessing the scheme fell by 831,000, yet during the same period, hospitality vacancies increased by almost 100,000. 

 

Updated Premium Database of Multi-Site Companies released tomorrow, 54 businesses being added: A total of 54 new multi-site companies, operating 369 sites, have been added to the next edition of the Propel Premium Database of Multi-Site Companies, which will be released tomorrow (Friday, 26 November), at midday. The updated Propel Multi-Site Database, which is produced in association with Virgate, includes a number of brands growing through franchise, expanding sports concepts, and regional pub and hotel operators. Premium subscribers will also receive a 3,900-word report on the new additions to the database. The comprehensive database is updated monthly and 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. The database features more than 2,000 companies in total. Alongside this, Premium subscribers will also receive the fifth edition of the New Openings Database, which is produced in association with StarStock, on Friday, 3 December, at midday. It focuses on newly announced openings and upcoming launches in the sector and is updated every month. The fifth edition also includes a 18,000-word report on the new additions to the database. Premium subscribers also receive access to another database – the Propel Turnover & Profits Blue Book, which is produced in association with Mapal Group. The Blue Book, which is also updated monthly, provides an insight into UK operator turnover and profitability over five years, profit conversion and directors’ earnings. Subscribers also receive access to Propel’s library of lockdown videos and Friday Wrap interviews and now also have access to a curated video library of the sector’s finest leaders and entrepreneurs, offering their insights on running outstanding businesses in the sector. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out plus regular video content and regular exclusive columns from Propel group editor Mark Wingett. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The regular single subscription rate of £395 plus VAT for operators and £495 plus VAT for suppliers remains the same. To subscribe, email jo.charity@propelinfo.com

Roxy Leisure to feature in Propel video series around challenges of attracting and retaining staff: Propel has created a mini-video series around the challenges of attracting and retaining staff in the sector. In the second episode of the series – which is sponsored by Harri, the enterprise employee experience platform built for hospitality – Chris Sleaford, chief operating officer at Roxy Leisure, talks to Abi Dunn, from Sixty Eight People, about bringing his team together after a very challenging 12 months and some unique new company benefits, and how the world has changed for the better since the industry has returned. The video will be sent at 9am on Thursday (25 November).

Almost a quarter of a million millennial workers estimated to have left sector as exodus puts emphasis on younger staff: Almost a quarter of a million millennial workers – those aged 25 to 40 – are estimated to have left the industry between December 2019 and October 2021, according to new research from workforce management app, Deputy. Its “Rebuilding Hospitality: The Changing Shape of the UK Workforce” report found this has accelerated a trend of replacing these employees with Generation Z workers. Examining bars and pubs, accommodation, cafes and coffee shops, fast food and takeaways, and restaurants, the report reveals a significant shift in industry staffing. The proportion of millennials working in the sector has declined from 49% to 42%, equating to a loss of around 210,000 workers. At the same time, the proportion of workers from Generation Z – those aged under-25 – has risen by 5%, which equates to around 150,000 workers. Fast food and takeaways have seen the proportion of Generation Z grow from 26% to 38% of the workforce while millennials declined from 51% to 43%. In bars and pubs, the proportion of under-25 staff has risen from 31% to 35% and dropped from 51% to 48% for the 25 to 40 age group. The proportion of Generation Z workers at accommodation providers has increased from 26% to 29% while for millennials it has fallen from 45% to 41%. At cafes and coffee shops, the proportion of under-25 workers has grown from 31% to 33% with the figure down from 55% to 50% for those aged 25 to 40. Independent economist Shashi Karunanethy analysed 1,528,542 shifts from Deputy’s rostering systems worked by more than 14,000 UK hospitality workers in the past 22 months for the report.

App connecting hospitality venues with remote workers launches: A new app that links hospitality venues with remote workers has launched – with 150 venues and 400 business users pre-registered. The Reef App allows people looking for convenient out-of-office workspaces to book places in venues such as cafes, restaurants and hotels that have available space. Those already signed up include Livelyhood Pubs, Neighbourhood and Bar Public, and there is no cost to venues to list on the app. Reef App, which aims to eventually list venues across the world, also allows venues to offer discounts on food and drink to users working within their premises. Founder James Coughlan said: “So much has changed over the last 20 months, and most of us are working in very different ways now. Workers at businesses as well as individual remote workers who subscribe to Reef App, can book spaces as they need them, logging on and working in more inspiring locations, or catching up with colleagues or clients. Venues are very much in control of when they have available space and what space they have on offer, with the aim of bringing in additional custom and footfall at times to suit them.”

Job of the day: COREcruitment is supporting a London-based bar and venue company that is expanding and diversifying. A COREcruitment spokesman said: “The business has been working to open new venues as well as developing its offering, including its food. We are looking to meet with hands-on senior leaders, ideally at operations director level, who is looking for an exciting, creative and long-term opportunity with a supporting and knowledgeable executive team. The role is based in London and will look after the whole group as it expands outside of the capital. The business is looking to pay circa £100,000 plus benefits and bonus.” Anyone interested can email Hollie@corecruitment.com   

 

Leon to open site at Asda superstore: Natural fast food brand Leon, which is owned by EG Group, is to open its first site at a supermarket, Propel has learned. The company is set to launch a site at the Asda superstore in Bletchley Way, Milton Keynes. Asda is also owned by the EG Group, which is backed by the Issa brothers and TDR Capital. It is thought Leon will take space in the store’s new food court. The store in Bletchley is currently undergoing Asda’s biggest makeover of the year. Estimated to cost more than £6.5m, the store’s new food court will also house the EG Group-partnered American bakery brand Cinnabon and S'barro, the New York-style pizza chain. It will also host Snowfox Group’s Panku street food concept. EG Group acquired Leon in a circa £100m deal earlier this year. It said the acquisition of Leon as a proprietary brand would complement the growth strategy in its non-fuel operations and enhance its foodservice brand portfolio, which already includes third-party brands such as Starbucks, KFC, Burger King, Greggs and Subway. The Issa brothers added there was a “fantastic opportunity” to further develop Leon’s menu offer, its various concession formats including drive-thrus, and to build on the existing network by exploring opportunities across EG Group’s own sites and other strategic locations. Leon opened its first drive-thru restaurant, in Gildersome, Leeds, on Wednesday (24 November). Founded in 2014, Leon has since grown to 70 sites throughout the UK and in the Netherlands, Ireland and Gran Canaria. It has also recently begun a concession at the new Asda on the Move site in Holtspur, Buckinghamshire, while further openings in London’s King’s Road and Kingston are also in the pipeline. 

Gordon Ramsay Restaurants appoints new HR director: Gordon Ramsay Restaurants has appointed Angela Lovell as its new HR director, Propel has learned. Lovell joins the fast-growing company after two and a half years as HR director at Sage Housing. Before that she spent two and a half years as HR director at Miss Selfridge, and more than four years as head of HR at the Arcadia Group. Earlier this month, Ramsay confirmed he will open a site in Liverpool under his Bread Street Kitchen concept. As Propel revealed last month, the chef, who is accelerating the roll-out of his Bread Street Kitchen, Street Pizza and Street Burger concepts, has secured the former Jamie’s Italian in Liverpool’s Paradise Street, Liverpool ONE, for an opening. Ramsay currently operates three Bread Street Kitchen & Bar sites in London, plus a Bread Street Cafe in Ealing. He also recently opened a Bread Street Kitchen in Edinburgh, on Drake & Morgan’s former The Refinery in St Andrews Square. The chef is also understood to currently be the lead bidder to take space on the upper floor of 22 Bishopsgate in the City. Meanwhile, Propel understands Ramsay is eyeing a further site in London for his Street Burger concept. The chef is understood to have applied to take the ex-By Chloe site at One Tower Bridge.

Caryn Savazzi to step down as Loungers people director: Caryn Savazzi is to step down as people director of Loungers after four years with the cafe bar operator, Propel has learned. Savazzi joined the circa 185-strong business at the end of 2017. She was previously people director at The Breakfast Club and UK head of HR at TGI Friday’s. Loungers chief executive Nick Collins told Propel: “After four years leading the people side of the business, Caryn Savazzi will be leaving Loungers on 16 December. During her time at Loungers, Caryn has built a fantastic team around her and had a huge impact on how we have evolved as an employer, positively influencing the experiences of thousands of Loungers. Caryn has always pushed for Loungers to become better in terms of how we look after everyone who works in the business, and that has never been more apparent than during the last 20 months, when as we have grappled with Covid, Caryn has worked tirelessly in ensuring our team were protected, reassured and responded to. The business has grown enormously during Caryn’s tenure, and as Loungers approaches 200 sites and over 5,500 team-members, a different type of leadership is required on the people side of the business. As such, we are now looking for someone new to guide us on the next stage of the journey. Caryn will continue to be a great friend of Loungers and has our enormous gratitude, having played such an important role in our continued success.”

South African seafood restaurant concept Ocean Basket to make UK debut: Ocean Basket, the South African casual dining brand focused on seafood, is to make its debut in the UK next year, Propel has learned. The business, which was founded in Pretoria in 1995 by Fats Lazarides, is understood to have secured the former Cafe Rouge site in Bromley’s Market Square, for an opening next spring. It is thought the site will be the first of many the brand will look to open in the UK. The brand, which is led by chief executive Grace Harding, currently operates 200 restaurants in 19 countries including Cyprus, South Africa, Mauritius, Kazakhstan, Dubai and Malta, under a franchise/licence model. It said it is “committed to offering quality seafood at a great price in a relaxed, modern Mediterranean home”. Richard Negus, of AG&G, acted for the vendor on the Bromley deal, while Sammy Weinbaum, of CDG Leisure, acted for Ocean Basket.

Salt acquires two former Hop Stuff taprooms and ex-brewery: Yorkshire-based Salt Brewery, part of Ossett Brewing Group, has acquired two former Hop Stuff taprooms and its ex-brewery in London as it looks to grow on a national scale. The brewery, Salt London, based in White Hart Avenue in Greenwich, will more than double the production capacity of the Salt brand, preparing for the next phase of growth. The taprooms, based at Market Yard and Royal Arsenal, will be rebranded as Salt craft + pizza, forming part of an ongoing commitment to investment in the area. The venues will have a specially curated menu of wood fired pizza alongside Salt beer and selected guest ale. There will also be cocktails, wine and spirits available. Salt founder Jamie Lawson said: “It’s always been an ambition to take our beer to London, and what better way than having our own branded outlets in the capital. There is such a huge craft beer presence in London that it feels like it’s the perfect time to be branching out and putting our stamp on the city. Our aim is to break the traditional mould and make great craft beer accessible to all.” Hop Stuff’s assets were bought by Molson Coors in a pre-pack administration deal in July 2019. It came after Hop Stuff, which had raised more than £1.5m from crowdfunding investors, ran into financial difficulties earlier that year. The company was forced to cease production at what was then its new brewery after a dispute with HM Revenue & Customs that subsequently led to the landlord seizing the premises after Hop Stuff was late with a rental payment.

Former Naked Deli CEO launches beer concept with Asda: Craig Bell, the former chief executive of Newcastle-based The Naked Deli, has launched a new draught craft beer concept with Asda. From this week, shoppers in Milton Keynes can sample from a menu of 12 regularly changing brews and seek expert advice to find something to suit their tastes. Once customers have selected their preferred drink, colleagues will use draft beer pumps to freshly pour their selection into refillable one-litre or two-litre glass containers to be taken away. The specialised beer containers can then either be kept and used, brought back to store to be refilled again or returned and a deposit refunded. Asda has partnered with Craft on Draft, a specialist retailer of craft beer and cider, which was founded by Bell earlier this year. Bell said the business would look to highlight unusual beer from smaller and local breweries that aren’t easily available elsewhere, with prices that are closer in line with the on-trade. A litre of craft beer or cider will be priced from £5.90 to £8.20. Craft on Draft will also be stocking a selection of low and no-alcohol beer. Propel understands the two companies will trial a further site within the Asda in Sheffield next year before exploring the option to expand to further sites. Bell said: “We’re proud to be launching this new concept exclusively with Asda and have secured some interesting beers for the whole of December, with even more low and no alcohol options to come in January.”

Rio Brazilian Steakhouses to open third site next week with two more to follow: Rio Brazilian Steakhouses, which already operates restaurants in Jesmond and Middlesbrough, will open its third site, in Newcastle Quayside, on Monday (29 November). Further openings are slated for Durham and Sunderland in 2022, with expansion outside its north east heartland also being planned. The Newcastle restaurant will have covers for 80 and be open daily, offering Churacasso-cooked meat and an unlimited salad bar. Lunch menus are £22.95 and evening sittings £33.95, with vegetarian, vegan and fish options available for £16.95. Children under five eat for free, while five to eight-year-olds can dine for £6.70 and nine to 12-year-olds for £10.30. The restaurant will be based above the Tomahawk Steakhouse site owned by the same operator, Howard Eggleton. His company also runs Tomahawk venues in Harrogate, Stockton Heath and London’s Hoxton, and Pollo by Tomahawk takeaway sites in Jesmond, Yarm and Castleford. A company spokeswoman said: “We have another couple of sites on the horizon in the north east that are due to open in 2022, and we’re always scouting in London for new venues and in negotiations with landlords, so watch this space.”

Maximal Concepts to launch first UK venture with London izakaya opening: Asian restaurant group Maximal Concepts will make its UK debut in the new year with the opening of a Japanese izakaya bar and restaurant in Knightsbridge. The Aubrey London will be based in the Mandarin Oriental Hyde Park, showcasing traditional Japanese cooking techniques and offering a creative cocktail menu. It replaces Bar Boulud, the burger bar from New York chef Daniel Boulud that closed in October 2020 following the expiry of its ten-year contract at the hotel. With The Aubrey, Maximal Concepts is aiming for an “immersive experience where art and design meets high quality drinks and innovative dining”, like many of the group's concepts in its Hong Kong base. Founded in 2012 by Malcolm Wood, Xuan Mu and Matt Reid, Maximal Concepts operates food and beverage concepts across Asia including John Anthony, Sip Song, Limewood and upscale Chinese restaurant Mott 32. Its first concept to rolled out internationally, Mott 32 currently has franchises in Hong Kong, Vancouver, Las Vegas and Singapore – which are set to be followed by nine more locations by 2024. The Mandarin Oriental Hyde Park, meanwhile, underwent an extensive restoration in 2019, including the hotel’s destination restaurants and Mandarin Bar.

Peel Hunt – three core elements to creating equity value at Marston’s: Peel Hunt leisure analyst Douglas Jack has argued there is three core elements to creating equity value at Marston’s. Issuing a “Buy” note on the shares with a target price of 120p ahead of the company’s full-year results next week, Jack said: “In our view, there are three core elements to creating equity value. [These are] growing pub profitability. The estate is well placed to benefit from the structural shift to hybrid commuting and falling market supply. We expect like-for-like sales to be flat in early 2022E, despite the VAT rate on food and soft drinks rising from 5% to 12.5%. Costs should be under control – relations with suppliers are strong; 5%to 6% growth in the national living wage was previously budgeted; utility costs are growing at 5% per annum and are hedged for six to 18 months; and most debt costs are fixed. The brewery joint venture should build profitability as the on-trade rebuilds its volume levels, helped by merger synergies running ahead of the expectations. Net debt has fallen from £1.4bn to £1.2bn over the last two years and should fall below £1bn in 2024E, a large reduction relative to a market cap of £0.5bn. Higher costs have been a big factor in causing hospitality share prices to fall by more than 10% during the last three months. However, Marston's scale, hedging and scope to raise prices (its beer price discount to the sector is almost 10% in both estates) should provide some protection, while sector supply continues to fall. Marston's shares trade on just 8.4 times 2023E EV/Ebitda (on an IAS 17 basis). Returning to the historical average of 9.7 times would equate to 56% equity upside. Hawthorn was recently acquired for 11.5 times EV/Ebitda. In our view, increasing visibility on Ebitda recovery and debt reduction should drive the re-rating.”

Extrawurst to make UK debut next month: Extrawurst, one of the leading German bratwurst fast-food to go brands, will make its UK debut next month. The brand will open a restaurant at the Merry Hill shopping centre in the West Midlands on Friday, 17 December. The restaurant will offer a menu including schnitzels, thin cutlets of seasoned chicken and Frickadelles – a German delicacy of flat pan-fried meatballs. The menu is completely personalised, allowing diners to choose a main, a side and a signature sauce along with toppings and spices. Sam Shutt, chief executive of Extrawurst UK, said: “We are excited to launch our first UK site, in Merry Hill, and we’re looking forward to bringing authentic, delicious German bratwurst to the people of the Black Country.” Propel revealed in September that Extrawurst was heading to the UK. The brand, which has more than 30 sites in Germany, appointed Shutt, former Debenhams head of retail hospitality operations, partnerships and business development and Philpotts managing director, to lead its plans to open “hundreds of sites” across the UK in the next three years with a master franchise model.

C&C Group strikes partnership deal with Lockdown Liquor: Drinks company C&C has agreed a partnership deal with premium blended cocktail company Lockdown Liquor. The deal will see Lockdown Liquor’s full range exclusively distributed through all C&C’s wholesale businesses – Tennent’s Wholesale, Bibendum Wine and Matthew Clark – across the on and off trade. The move builds upon Lockdown Liquor’s recent product launches, listings with national groups and a lucrative first funding round. Since its inception in April 2020, the company has amassed more than 130,000 sales, with a turnover of circa £1.6 million.

Clink Hostels secures €30m funding, plans to follow Dublin and Lisbon openings with pan-European expansion: Clink Hostels, the youth accommodation provider founded by sisters Anne and Shelley Dolan in 1997, has secured €30m in debt funding from Bain Capital and is eyeing expansion across Europe. The company currently operates hostels in London and Amsterdam, with work on a Bain Capital-funded 628-bed Dublin hostel underway and plans in the pipeline for a 700-bed Lisbon hostel. The €30m cash injection is now expected to fund ambitious growth plans, including a network of hostels across Europe. With the Dublin hostel set to open in the spring of 2023, followed by the Lisbon venture, Clink is on course to become the sixth (currently the seventh) largest hostel brand on the continent. Chief executive Mark Fenelon said of Clink’s next opening: “Dublin is an increasingly popular big city gateway, and what’s obvious is that there’s a real lack of high-quality ultra-budget accommodation for 18 to 30-year-olds, despite massive demand. With only two leading hostel market players in the city, we decided to grasp the huge opportunity, providing a real ultra-budget alternative to the cost-conscious, experience-seeking traveller in a market dominated by expensive hotel formats.” Prices at the Dublin hostel will be around €25 a night.

Greene King wins diversity award, passes £10m Macmillan fundraising mark: Brewer and retailer Greene King has landed The CorpComms Awards 2021 for its work promoting diversity and inclusion. The company’s Calling Time on Racism action plan set out a series of commitments to increase the representation of its Black, Asian and ethnic minority employees. It has already changed the names of three pubs called the Black Boy and one called the Black’s Head, launched a reverse mentoring programme and an employee-led diversity group, partnered with the Slave-Free Alliance and International Slavery Museum, and chaired an industry group to drive equality and diversity in the sector. Greene King’s corporate affairs director, Greg Sage, said: “We are delighted to win this award and see our early work recognised. We know there is still much more to do, and our journey to becoming a truly anti-racist organisation is only just beginning.” Meanwhile, Greene King has also passed the £10m fundraising mark for Macmillan Cancer Support, raised over the past ten years through the company’s pubs, offices and brewery.

London’s Chinatown chosen for UK debut of Asian sugar-free ice cream and frozen yogurt brand: Yolé, the world’s first no-sugar ice cream and frozen yogurt brand, will make its UK debut, in London’s Chinatown, later this month. The brand has an extensive presence in south east Asia, with its flagship in Singapore and more than 30 stores in Indonesia, Taiwan and Cambodia. Yolé has now taken on a 309 square-foot unit at 74 Shaftesbury Avenue, where its products will be available in soft serve or tubs to take away. The menu will also include freshly made milkshakes, boba (bubble tea) and ice cream bars, with toppings able to be customised. Milad Nawaz and Salman Qureshi, owners of Yolé, said: “Chinatown London is such a buzzing location, and it makes a lot of sense for us to be here, given the popularity of Yolé in south east Asia. We cannot wait to open and showcase what we’re all about.” Hanover Green represented Chinatown London while Yolé dealt direct.

Canary Wharf all-day restaurant and cocktail bar to open next week: Shutters Canary Wharf, a new all-day restaurant and cocktail bar based on the ground floor at One Canada Square, will open next Wednesday (1 December). It will be open daily, with brunch served from 8am-11am followed by all-day dining from noon to 10pm, featuring a fish-led menu focusing strongly on Cornish produce. The breakfast offerings include steak and eggs, smoked west coast haddock kedgeree and sweetcorn and coriander fritters, while among the all-day options are Cornish crab, steamed St Austell Bay mussels, griddled octopus and whole baked Cornish sole. A Mexican-inspired cocktail bar will sit on the upper level, while a separate counter will be stocked with juice, smoothies, pastries and Shutters’ own blend of coffee, hand-roasted in Cornwall. By night, the counter will serve wine and build-your-own deli boards of cured meat, cheese and lighter bites.

Dayashankar Sharma launches new Indian delivery and takeaway brand: Dayashankar Sharma, the brainchild behind fine-dining Indian restaurant Heritage Dulwich, has launched a new premium Indian delivery and takeaway brand. Based in south east London, the venture is called Jhakaas, meaning “epic” or “superb” in Hindi. Sharma’s dishes focus on four key cities – Delhi, Bombay, Kolkata and Chennai – and reflect his 30 years working in acclaimed restaurants such as Zaika and the Michelin-starred Tamarind. Jhakaas’ delivery radius spans 3.5 miles from its location in Brockley Rise, and up to five miles for pre-orders booked at least 24 hours in advance. Sharma opened Heritage Dulwich, based in Rosendale Road, in February, although the restaurant had to originally operate as a takeaway and delivery service due to lockdown restrictions.

Sarap Bistro opens in Mayfair with menu speciality: Filipino restaurant Sarap BAon’s sister site has opened at 10 Heddon Street in London’s Mayfair, in the site formally occupied by Fallow. Sarap Filipino Bistro will look to continue the success of Brixton-based BAon, which managed to weather the pandemic despite only opening in late January 2020. The menu is centred around the Lechon suckling pig – a speciality of the Philippines and a signature at BAon. However, for Sarap Bistro, founder Ferdinand “Budgie” Montaya is serving it in a unique format, with the pig served whole and stuffed with bold lemongrass aromatics and truffled adobo pork rice. The lechon must be ordered 48 hours in advance and is designed to be shared between four to six people. Among the drinks selection are Filipino-inspired cocktails as well as lager and ale from local breweries.