Chipotle – we need to build brand awareness to reach required sales and profit levels in UK and may never manage it: US brand Chipotle has said it needs to build its brand awareness in the UK to reach the required sales and profit levels here and admits it may never manage it. The comments were made by director Kenneth Slater in his report, dated 9 February 2023, accompanying Chipotle Mexican Grill UK’s accounts for the year ending 31 December 2021. It reported a rise in turnover from £4,828,549 in 2020 to £11,125,312. This was also higher than pre-pandemic levels, with a figure of £9,688,829 reported in the year ending 31 December 2019. Pre-tax losses narrowed from £6,364,931 in 2020 to £5,898,811, meaning the company is reliant on its parent company to meet its day-to-day capital requirements. This compares with a pre-tax loss of £4,366,257 in the last full year before the pandemic. “Continued development in the UK will partially depend on Chipotle Mexican Grill UK’s ability to generate strong sales and returns for our investor,” Slater said. “Specifically, due to lower consumer familiarity with the Chipotle brand, differences in customer tastes or spending patterns, or for other reasons, sales at restaurants in the UK may take longer to ramp up and reach expected sales and profit levels and may never do so. To build brand awareness, we may need to make greater investments in advertising and promotional activity, which could negatively impact our profitability. We may also find it more difficult to hire, motivate and keep qualified employees who can project our vision, passion, and culture. Refining our long-term supply strategy for our European locations remains an important objective. We also continue to focus on labour costs as we strengthen our teams and become more efficient in serving our customers. Lastly, we are focused on growing our delivery business while effectively managing the costs associated with this sales channel. We will continue to drive operational improvements and develop opportunistically as our brand gains traction, and we create a deep pipeline of future restaurant leaders. We will continue to focus on enhancing the digital capabilities in the UK restaurants to accelerate revenue growth and profitability in the future.” The company has 13 UK sites and said it is due to open three more early in 2023. The company received £82,128 in grants (2020: £598,158). Meanwhile, Chipotle is to open a new brand called Farmesa Fresh Eatery in a ghost kitchen in the US. Farmesa, which will launch later this month at Third Street Promenade in Santa Monica, California, will offer bowls featuring a protein, green or grain, two sides, one of five sauces and a topping option. Prices will range from $11.95 to $16.95. 

AlixPartners managing director Graeme Smith to speak at first Propel Multi-Club Conference of 2023, three free places per company for operators: AlixPartners managing director Graeme Smith will be among the speakers at the first Propel Multi-Club Conference of 2023, which takes place on Thursday, 23 March, at the Millennium Gloucester Hotel in London’s Kensington, and is open for bookings. The all-day conference will focus on “challenges and opportunities”. Smith will look at where the investment market now sits, who the buyers are and what can we expect in terms of M&A over the course of the year. Operators can book up to three free places per company by emailing paul.charity@propelinfo.com.

 

Sixth UK Food and Beverage Franchisor Database to feature 185 companies, released on Friday: The sixth UK Food and Beverage Franchisor Database, which will be sent to Premium subscribers on Friday (17 February) at midday, will feature 185 companies, with 15 new additions. It will provide insight on the offer, locations, cost and other key details of companies offering a food and beverage franchise in the UK, with more than 85,000 words of content. Several street food concepts are among the new franchisors featured. Among them is Pakistani theme-based café concept Naan Staap, which has five locations, all in London, and opened its first franchise site in November 2022. Also featured is fast-casual Greek brand Mikos Gyros, which opened its first store in London in 2017 and has since grown to eight locations in the capital. Lebanese street food concept Allo Beirut, which has six outlets in the Middle East and is looking to expand to the UK, is also featured. So too is Yakinori, a four-strong noodle and sushi concept founded in Birmingham in 2015. Premium subscribers also receive access to The New Openings Database; the Propel Multi-Site Database, produced in association with Virgate; the Turnover & Profits Blue Book; and the Who’s Who of UK Food and Beverage. Premium subscribers have also been given access to the entire recording of the 2023 Restaurant Marketer & Innovator European Summit Conference. Subscribers were sent 30 separate video presentations, featuring more than 80 speakers. 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 single subscription rate is £445 plus VAT for operators and £545 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription. Subscribers also receive access to Propel’s library of Friday Wrap interviews and 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. They also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out; regular video content and regular exclusive columns from Propel group editor Mark Wingett.

 

UKHospitality – price rises still significantly hindering sector businesses despite drop in inflation rate: Price rises are still significantly hindering sector businesses despite the drop in the rate of inflation, UKHospitality has said. Despite a drop in overall UK price inflation to 10.1% for the month from 10.5% in December, food costs remain at a 45-year high. The price of olive oil, sugar and low-fat milk all increased by more than 40% in the year to January, according to the Office for National Statistics (ONS). Food inflation remained high at 16.7% in the year to January, a slight drop from 16.8% in December. The fall in overall inflation, which was the third monthly decrease in a row, was largely due to the price of fuel and cost of restaurants and hotels slowing, the ONS said. But this was offset by rising prices of alcohol and tobacco. UKHospitality chief executive Kate Nicholls said: “The rate of inflation decreasing for three months in a row is promising, but it remains the case that price rises continue to significantly hinder hospitality businesses. A drop in the cost of visiting venues in January is a clear reflection of venues squeezing every drop out of their margins in a bid to attract custom, in order to stay afloat after a Christmas hit by rail strikes and amid the annual new year drop in consumer spend. The cost of energy alone is enough to keep much of the sector teetering at the cliff edge. The substantial reduction in energy support in April, as well as continued labour shortages, will increase the sector’s vulnerability, constrain growth and likely add to further price rises. This can be avoided if the chancellor takes action at the Budget to tackle the root causes of inflation in hospitality, allowing the sector to help reduce inflation. Intervening in the energy market, reforming the Apprenticeship Levy and introducing a lower business rates multiplier for the sector are all measures that can see the sector tackle immediate challenges and rapidly deliver economic growth for the UK.”

 

West Midlands mayor pledges to appoint night-time economy adviser for region ‘imminently’: West Midlands mayor Andy Street has pledged to appoint a night time economy adviser (NTEA) for the region “imminently”. Street has been pushing for the role, to champion hospitality in the West Midlands, since October – to complement the NTEAs in Greater Manchester (Sacha Lord) and Bristol (Carly Heath), plus London night czar, Amy Lame. Since then, Lawrence Barton was appointed Birmingham’s first night time economy champion in November, while in December, The Night Time Industries Association (NTIA) launched a campaign to establish an NTEA in every major city in the UK. “It’s incredibly sad to see a number of independent hospitality businesses losing their fight for survival,” Street said. “I know just how difficult it is at the moment, which is why I’ve already written to the government urgently requesting a regional energy hardship fund for businesses. Energy companies must also face their responsibility here, and I will shortly be convening a summit of suppliers where we will show them the businesses who’ve effectively been mis-sold extortionate energy deals. They must do the right thing and renegotiate in such instances. For hospitality businesses specifically, I’ve also asked the government to look at a VAT cut on food, given what this can do for bottom lines. Finally, we will be appointing our night time economy advisor imminently. The sector needs a WM champion now more than ever.”

 

Barcelona lays down rules on dark kitchen locations: Barcelona has approved a measure to force dark kitchens to be located only in an industrial suburban district. It is part of a total ban on so-called “dark stores” – distribution hubs used by companies that provide grocery home deliveries – in the city. The ban by the Barcelona government seeks to “preserve (traditional) neighbourhood stores and residents’ quality of life”, it said in a statement, arguing dark stores’ activities were causing excessive disturbance. The facilities will have to be converted into food warehouses without home delivery or into open supermarkets. Amsterdam and Rotterdam last year approved a one-year freeze on new dark stores while France said they should be classified as warehouses, even if they sell products similar to supermarkets.

 

Job of the day: The Scotsman Group, the privately owned and operated business, is seeking a group executive chef. A spokesperson said: “This is a key appointment, and as such we are seeking an exceptional individual who is passionate about food and has the ability to inspire our kitchen teams. Responsibilities will include leading and managing the area operational support team on a day-to-day basis, procurement of new products and management of the online purchasing system, implementation of cost control on food by streamlining and managing par levels, and project managing any food related projects from concept to implementation. You will also review customer service scores across all the guest facing platforms, work with the people team on recruitment and the strategic direction of the teams including our apprenticeship programme and chef school, have responsibility for all system pieces that require input from the food team and support the training and development of our venue chef teams. You will be able to cook and deliver a multitude of different styles of cooking and train the team effectively. In return for the above, we offer a competitive salary, generous company benefits including bonus, life assurance, private healthcare, and the opportunity to work for one of the most rewarding brands in Scotland.” To apply, click here.

 

The Grill Pub Co seeks funding partners for further expansion, in talks on sixth site: The Grill Pub Co is seeking funding partners as it looks to ramp up expansion of its country pub and grill concept, Propel has learned. The Grill Pub Co has five sites, having opened its latest venue – The Horseshoes in the Shropshire hamlet of Uckington – in April last year. The business is in discussions for a sixth opening in Cheshire and is looking for funding partners (debt and/or equity) to help with its ambitious growth plans over the coming years. Managing director Leon Burton told Propel: “Despite industry pressures, we remain a very attractive profitable business with little debt and substantial growth opportunities. We have the appetite, the team and an attractive financial position to take advantage of the opportunities over the coming years, despite the difficult backdrop.” Burton said the concept was opening on average one site per year, but would like to “double or triple this with the right funding partners”. He added the group was looking to bolster its presence throughout Staffordshire, Cheshire and Shropshire but said there were “not the number of sites currently coming to the market that we expected given the significant pressure on the industry as a whole”. However, he said the group was “in a fantastic financial position to take advantage as and when they do”. Burton said current trading “remains strong and performing above expectation given the economic backdrop”. Revenue in January was 20% above last year.

McDonald's launches new ‘Saver Meals’ trial after announcing price rises: McDonald’s is trialling a new budget range across 120 of its sites, but at the same time is increasing the price of five popular menu items, blaming the cost-of-living crisis. The new range, which will be trialled for the next 12 weeks, includes three different burgers with sides and a drink for a new Saver Meal. The new range will be rolled out nationwide if it proves successful in the 120 branches, which are based in the south east. Under the new range, a cheeseburger or mayo chicken with a side and drink will be £3.99, while a double cheeseburger with a side and drink is £4.79. It comes after McDonald’s raised the price of a cheeseburger for the first time in 14 years last year. From today, the brand will also push through further price hikes as it sets new recommended retail prices. Exactly how much the prices will go up will vary, but the company said some items will increase by between 10p and 20p. The company said that each McDonald’s branch is free to set its own prices – except on the new saver menu, where different franchises tend to charge the same amount. According to The Mirror, the items that are going up in price are: mayo chicken – 99p to £1.19; bacon mayo chicken – £1.59 to £1.79; bacon double cheeseburger – £2.49 to £2.69; triple cheeseburger – £2.69 to £2.89; and medium carbonated drink – £1.39 to £1.49. McDonald’s UK and Ireland chief executive Alistair Macrow said: “We’re living through incredibly challenging times and we’re all seeing the cost of everyday items, such as food and energy, increase in a way many of us have never experienced. Just like you, our company, our franchisees who own and operate our restaurants and our suppliers are all feeling the impact of rising inflation. Since we opened in the UK in 1974, we’ve committed to offering great tasting food at affordable prices, and that commitment will not change. But today’s pressures mean, like many, we’re having to make some tough choices about our prices.”

Wadworth signs up to Asset Match: Devizes brewer and retailer Wadworth has started trading on Asset Match, the platform that provides liquidity in private company shares, Propel has learned. Asset Match will be operating a market in all four share classes comprising; A ordinary shares, ordinary shares, 10.25% preference shares and 9.5% preference shares. Wadworth was founded in 1875 by Henry Alfred Wadworth and is an independent family business with more than 150 pubs across the south and west of England. The principal activities of the company are the brewing and packaging of beers, the wholesaling and retailing of beers, ciders and wines, spirits and minerals and the ownership and management of licensed properties. The brewery combines the tradition of craft beer with modern production techniques and systems, while the estate is split between tenanted and managed pubs.

 

Coca-Cola FY revenue growth boosted by Costa’s UK performance: The Coca-Cola Company has said its revenue growth in 2022 was boosted by Costa Coffee’s post-pandemic recovery in the UK. The company, which acquired Costa for $5.4bn (£3.9bn) in 2018, reported full-year 2022 revenue growth of 11% to $43bn. Sales in the company’s coffee segment grew 13% over the year, primarily driven by the strong post-pandemic trading of its circa 2,700-strong UK Costa Coffee business. It reported that its coffee section grew 11% for the quarter and 13% for the year, primarily driven by “cycling the impact of pandemic-related Costa retail store closures in the UK in the prior year and the continued expansion of Costa coffee across markets”. James Quincey, chief executive of The Coca-Cola Company, said: “While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment. We are keeping consumers at the centre of our innovation and marketing investments, while also leveraging our expertise in revenue growth management and execution. Our growth culture is leading to new approaches, more experimentation and improved agility to drive growth and value for our stakeholders.” 

 

Heavenly Desserts set to launch in second international market this year: Artisan dessert restaurant Heavenly Desserts is set to launch in a second international market this year. The fast-growing brand made its international debut just before Christmas with a restaurant in the district of Mississauga, near Toronto in Canada. It has also sold the master franchise rights the US, Pakistan and Denmark, and will open its first Pakistani store in the second or third quarter of 2023, in Karachi. Opening around the same time will be a second Canadian store, in Toronto itself. Back in the UK, the business has started 2023 with openings in Brighton and Gallions Reach, London, as it rapidly approaches the 50-store mark (currently 44). Second and third-quarter openings lined up in the UK include Slough, Milton Keynes, Manchester city centre, Leamington Spa, Aberdeen, Glasgow Fort and Tooting, south London.

 

Edinburgh brewer hits £280,000 crowdfunding target to help open Scotland’s first specialist alcohol-free brewery: Edinburgh brewer Jump Ship has hit its £280,000 target to help open Scotland’s first specialist alcohol-free brewery within 48 hours of the crowdfunding campaign launching. Founded in December 2019 by Sonja Mitchell, on the back of a successful crowdfunding campaign with her flagship beer, Yardarm, Jump Ship has now expanded its core range to four beers as well as two seasonal releases and two collaborations. It has tripled it sales in the last two years, including 240% growth in wholesale in 2022, driven by strong growth in the on-trade, and is listed with more than 130 independent stockists. It has also made exports to the US and Finland, with a planned roll out to a further 300 Finnish stores this year. The company has so far raised more than £287,000 and is offering 11.56% equity, giving a pre-money valuation of £2.2m. Of the proceeds, 71% will go towards installing the brewery and 29% towards expanding the team, by hiring a national account manager and digital marketing manager. Jump Ship sells directly to independent restaurants, bars and bottle shops with a focus on premium outlets, including Buzzwork Holdings and the Signature Pub Group. Future growth plans will focus on expanding distribution to multiple retailers, strengthening its position in the on-trade and growing direct-to-customer sales. Mitchell said: “We’ve found a beautiful site, just outside Edinburgh, where we can install Scotland’s first specialist alcohol-free brewery, and we’re due to sign the lease shortly.”

 

FCB Coffee set to open tenth site: FCB Coffee, which operates at stations across the south east of England, is set to open its tenth site later this month. Situated in the lower level of Waterloo station, next to the Jubilee Line entrance and Waterloo Road exit, the stand-up coffee kiosk will open on February 24. As with its other sites, FCB Waterloo will have an exclusive partnership with London-based Plot Roasting and will showcase monthly guest roasts and filter coffees. It will also offer a menu including coconut porridge, pastries, smoothies, ciabattas, sandwiches, flatbreads and vegan sausage rolls. There will also be a selection of cakes and sweet treats, 75% of which is vegan. FCB has also introduced fully recyclable lids made from cardboard and is moving to takeaway cups made without any plastic.

 

Cookies & Cones moves into wholesale following opening of £250,000 production facility, planning 11th site: Essex American-style dessert company Cookies & Cones has moved into wholesale following the opening of its new £250,000 production facility and is planning to open its 11th site. The new 6,000 square-foot space, in Progress Road, Leigh-on-Sea, houses a takeaway and head office for the company as well as production facilities. Founder Matt Davis said: “Now that we’ve moved into our new production facility, we have the capacity to offer wholesale, and yesterday we launched our new wholesale catalogue for 2023! Four years ago, I opened my first store in Leigh-on-Sea, and since then we have grown from strength to strength. We have endured a pandemic and are now trying to survive a global financial crisis. However, one thing has been constant, and that is our wonderful customers. Ten stores (soon to be 11), over 80 staff and national companies approaching us to work with them!”

 

Heineken UK revenue up by almost 20% helped by popularity of Birra Moretti: Global brewer Heineken reported that its net revenue in the UK was up by almost 20% last year, thanks to “the partial recovery of the on-trade, premiumisation and pricing”. It was helped by the growing popularity of its Birra Moretti brand, which became the country’s largest premium beer by value in 2022. Globally, the company forecast operating profits to grow at a mid-high single-digit rate in 2023. However, in Europe, volumes are predicted to decline this year. The company reported a 4.5% fall in pre-tax profit to €4.3bn (£3.8bn). Revenue rose by more than 30% to €34.7bn. Heineken said it hopes to keep its beer prices steady and will take some pain from inflationary pressures. However, it warned input costs in Europe could increase in the high teens this year, citing significantly higher energy costs as the reason. “We will continue the discipline to price responsibly as per local market conditions, aiming to cover ‘most’ of the absolute impact of inflation in our cost base,” Heineken said in its trading update.

 

South London pop-up micro wine bar to open first permanent site next week: South London pop-up micro wine bar and bottle shop Henny’s will open its first permanent site next week. Henny’s has been operating out of Tooting Market since 2017, but when the opportunity arose to move into its first bricks and mortar space, the team jumped at the chance, according to co-founder Niall Penlington. The self-funded venture will open on Thursday, 23 February, at 195c Balham Road in Balham – offering teas, coffees, beer, cocktails and pizzas as well as wines. And while the team very much “know their grapes”, they insist there is no room for snobbery and wine novices are very welcome. “We focus on organic and biodynamic wine, as we think this gives the true expression of a region and highlights the skills of the winemakers,” said Penlington, who has worked for Vagabond Wines and Bibendum. There will be a weekly changing menu and pricing will be “very competitive”, with margins kept as low as possible.

 

Edinburgh restaurant group returns to profit: Edinburgh restaurant group Castlegate Investments returned to profit in the year ending 31 December 2021. The group operates The Witchery by the Castle in Castlehill and, until it closed in June 2020, The Tower Restaurant, on the rooftop of the National Museum of Scotland. It reported a pre-tax profit of £1,149,614 compared with a loss of £109,220 in 2020. In the last full year before the pandemic, ending 31 December 2019, it made a profit of £1,017,785. Turnover rose from £2,364,572 in 2020 to £4,256,889. In 2019, when it still operated The Tower Restaurant, it reported turnover of £7,310,470. The business received £476,232 in government grants (2020: £951,039) and £5,913 in investment wine sales (2020: £154,134). Director James Thompson, in his report accompanying the accounts, said the results would have been “a lot worse” without government grants, rates relief and the reduced rate of VAT, plus “significant support” from its bankers. He added: “The business had traded well when open and there is good reason to be optimistic about the future.”

 

Tortilla to open in Greenwich next week as it increases London footprint: Tortilla, the UK’s largest fast-casual Mexican restaurant brand, will expand its London presence with an opening in Greenwich next week. The restaurant in Crescent Arcade, opposite the Cutty Sark, will launch on Friday, 24 February. The venue – the brand’s 84th – will seat more than 40 people over two floors, creating 20 jobs. Richard Morris, chief executive of Tortilla, said: “We’re excited to further expand our brand in London with this fantastic spot in Greenwich.” Last month, the business said it has a “healthy pipeline” of further openings planned for later in the year, including its debut site in Northern Ireland.

 

Jobs lost at Burleighs Gin but hopes remain for rescue deal: Leicester gin distiller and retailer Burleighs, which owed almost £1.6m to creditors when it collapsed into administration, could be on the verge of being rescued. Administrators from Begbies Traynor have identified Darren Gould as the potential saviour of Burleighs Gin, which slipped into administration in December after temporarily closing its distillery and ceasing to take orders due to “unforeseen circumstances” just weeks beforehand. Gould, a former director of Burleighs’ holding company, has established a new company, Burleighs Gin Distillers, in a bid to rescue the business, reports The Business Desk. Gould, who holds directorships with real estate and management consultancy company Lexer Investments and Safeguard Construction, resigned from Burleighs Holdings in November 2021. Begbies were called in to look after the day-to-day running of Burleighs after the firm posted two notices of intention to appoint administrators in November. Documents subsequently released by the administrators showed creditors are owed £1.58m owed. In a statement, the administrators said “significant delays” to the sale process had resulted in all of Burleighs’ staff being made redundant at the beginning of January, but hopes of a rescue deal remain live.

Daylesford revamps training scheme as it aims to create new talent pool: Lifestyle organic brand Daylesford has revamped its Future Foodies  training scheme as it aims to create a new pool of talent. The year-long programme, based at Daylesford Organic Farm in the Cotswolds, has seen more areas of the business added into the programme so trainees cover areas such as charcuterie, bakery and the events kitchen. Trainees can also “pick a residency” as part of the programme, including The Wild Rabbit and The Fox and all departments in head office including new product development, menu development and sustainability. On the recruitment side of things, Daylesford will be working closely with schools and universities in the surrounding areas to promote hospitality as a career choice to school leavers and graduates. The internship offers a full time fixed term contract starting in September, with a view to becoming a permanent member of the team upon graduation. It offers a salary of £22,000 per annum plus comprehensive benefits and the option of subsidised accommodation. 

Gelato concept led by former Jamie’s Italian chief executive opens fifth site for Welsh debut: Gelato concept Swoon, led by former Jamie’s Italian chief executive Simon Blagden, has opened its fifth site and made its Welsh debut. As previously reported, the brand, which launched in 2016, has taken a site at the entrance to the Duke Street Arcade in Cardiff. It also has sites in Bristol, Bath, Oxford and Selfridges Foodhall in Oxford Street, London. “Exactly seven years after we opened our first Swoon Gelato, we’ve opened our fifth gelato bar,” chief executive Bruno Forte wrote on LinkedIn. “Hello Cardiff!” In October, Blagden said Swoon has plans to open a further four sites by 2025.

 

Thermae Bath Spa returns to profit, but lack of skilled therapists prevents it maximising revenue: Thermae Bath Spa returned to profit in the year ending 30 June 2022, but a lack of skilled therapists prevented it maximising its revenue. Accounts for Thermae Development Company, which operates the natural thermal spa complex in Bath, showed a pre-tax profit of £2,729,393, compared to a loss of £854,558 in 2021. In the last full year before the pandemic, ending 30 June 2019, it made a pre-tax profit of £2,530,415. Turnover increased from £2,555,238 in 2021 to £10,339,619. This was almost back to pre-pandemic levels (2019: £11,761,860). Turnover included £1,492,630 of redeemed gift voucher sales (2021: £220,847) and £125,272 of expired gift voucher income (2021: nil). It received £55,616 in government grants (2021: £960,270) while staff levels rose from 132 to 163. Net balance sheet assets are £3,460,143 (2021: £1,390,062). In her statement accompany the accounts, director Pearly Poussier said business “recovered smoothly and quickly” following covid, showing “an upward trajectory” aside from the months affected by Omicron. “The so-called pent-up demand for leisure did manifest itself for Thermae Bath Spa’s business,” she said. “Annual visitor numbers went from 57,235 in June 2021 to 259,460 in June 2022. Revenue is currently showing an upward trend. This trend looks to continue if the news of inflation and the cost-of-living crisis do not scare or discourage potential visitors. The main challenge was recruitment. The lack of skilled spa therapists in the market has impacted on the number of treatments Thermae Bath Spa could sell, and therefore revenue was not maximised.” She added that management sees facility’s age as being the biggest risk it faces, and it closed for two weeks during January 2023 to carry out essential maintenance works. 

 

Chorlton pizza concept Double Zero to open Manchester city centre branch: Chorlton pizza concept Double Zero is opening a new branch in the centre of Manchester. The restaurant will be in Fountain Street, the company confirmed in a post on Instagram. “We are over the moon and will be giving you updates on when we will be opening at some point over the coming months, and we simply can’t wait,” the post said. “This wouldn’t have been possible without all of our customers that have continued to support us over the eight years since we first opened.” Double Zero – named after the specialist pizza flour that makes the dough – opened in 2015 in Barlow Moor Road. The restaurant has a wood-fired oven, shipped in from Naples, and is known for its mezzaluna – or “half-moon” – which is half pizza, half folded calzone.

 

North east restaurateur closes Gateshead venture due to rising costs: North east restaurateur Andrew Drape has closed his Gateshead venue for good after rising bills and other costs took their toll on the business. River Beat has welcomed customers for the last eight years, serving up Asian tapas with a twist. Drape made the closure announcement on social media channels, saying: “I’m the one and only director, with no backers, so I was in getting into more and more debt. With rising rates, bills, staff costs and food costs you need £10,000 a month before you open the doors. And then there’s all the other costs – pest control, security alarms, accountants. The last pay packets to staff came out of my pocket.” While River Beat will now be liquidated, Drape also has another restaurant venture in Sunderland, Buddha Beat, which opened at the end of last year in the former D’Acqua restaurant site in John Street, where he signed a ten-year lease for the grade II-listed basement site. He told Business Live the Sunderland restaurant was reporting profit after just three weeks of trading, welcoming in more than double the number of customers too, in stark contrast to the Gateshead site, which has seen energy bills soar from £800 a month to £4,000. Drape said: “The Sunderland restaurant is going really well, and the support I’ve had from the council, including grants to open, has been brilliant.”