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Morning Briefing for pub, restaurant and food wervice operators

Fri 17th Feb 2023 - Propel Friday News Briefing

Story of the Day:

Le Pain Quotidien to expand through franchising in UK: Le Pain Quotidien, the Belgian restaurant and boulangerie brand, is to launch a franchising model in the UK, as it looks to expand across the country, Propel has learned. Le Pain Quotidien, which operates ten company-owned sites in the UK – nine in London and one in Oxford – has begun working with franchising broker Platinum Wave as it looks to build relationships with existing and prospective single site and multi-unit franchisees. The brand currently operates in 15 countries around the world, and already operates a mixture of company-owned and franchise estates in the likes of Belgium and France, while it has master franchisees in the US and Brazil. Chief executive Annick Van Overstraeten told Propel: "We have been developing our franchise portfolio across numerous countries, with more set to come online this year, whether that is through a master franchise agreement or where we are already operating within a country through multi-unit franchisees or even single unit franchisees. In the UK we believe there is a real appetite from existing franchise operators to take on new brands, for something different outside the more traditional quick service restaurant burger and pizza model. We are already beginning to see that come through with the initial conversations we have had.” Tom Harries, who took over as managing director of the brand's UK business last summer, said: “Our brand works in good neighbourhood locations that are more affluent than average but doesn't require very high-end markets. The research we have carried out suggests it will work very well in some of the cathedral and large university cities where there's an international community as well. These are areas where there's already businesses like Waitrose for example, like John Lewis, complementary brands to ourselves, and we sit well in those types of market place. That's what we see in our London restaurants outside of the St Pancras/Covent Garden showcase sites but with our neighbourhood sites in Marylebone, Hyde Park and South Kensington. Those are the size and the types of units that we believe can spread throughout the UK via the franchise route.” The brand operates about 220 sites globally across its franchise and company-owned models.

Industry News:

Omnia and day clubs added to itinerary for Propel study tour to Las Vegas: Three more amazing stops have been added to Propel’s Las Vegas study tour. Trip organiser Myles Doran said: “We have added the most successful nightclub in the world to the line-up, Omnia, and we will get to meet the team behind the magic during peak trading hours to see first-hand how it delivers the sizzle. In addition, we have added not one but two of the best day clubs on the strip to the line-up, TAO Beach at the Venetian and Wet Republic at the MGM Grand. We will also get access to behind-the-scenes detail that will blow your mind due to the scale of the operation. There will be much to learn and be inspired by over the course of the four days so if you have ever wondered what best-in-class looks like, this is a must attend tour for operators, entertainment teams and marketers.” If you would like to join the tour, then contact myles@hospitality-inc.co.uk or call him on 07710 783485 for more information and to confirm your place. Final bookings will close in two weeks’ time.

Karen Turton to speak at first Propel Multi-Club Conference of 2023, three free places per company for operators: Karen Turton, founder and chief executive of entrepreneurial learning consultancy Purple Story and former director of Nando’s and Turtle Bay Restaurants, will be among the speakers at the first Propel Multi-Club Conference of 2023. The conference 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”. Turton will talk about how businesses can improve their performance through a leadership step-change and where the chief executives and managing directors should focus as they inspire their teams through the next 12 months and beyond. 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 more than 85,000 words of content, released today: The sixth UK Food and Beverage Franchisor Database, which will be sent to Premium subscribers today (Friday, 17 February) at midday, will feature more than 85,000 words of content. It will provide insight on the offer, locations, cost and other key details of 185 companies offering a food and beverage franchise in the UK. Among the 15 new entries is adventure golf and Asian street food concept Putt Putt Noodle, which plans to add 40 more sites by 2026. Also featured is gaming and board cafe concept Geek Retreat, which has grown to 43 sites since being founded in 2013. 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. In this week’s Premium Opinion, which will be sent to subscribers today at 5pm, he looks at the latest events surrounding The Restaurant Group and its shareholder Oasis Management. Meanwhile, Simon Anderson, food hall consultant at Ideas Food Consultancy, and ex-chief operating officer at Market Halls, asks where do food halls go from here? 

Starbucks UK gives free period products to staff in first for British coffee industry: Starbucks UK is giving free period products to its staff in a first for the coffee industry in Britain. Employees are being offered free 100% organic cotton tampons and pads at work. Starbucks has partnered with sustainable period care brand Time Of The Month (TOTM), whose mission is rooted in breaking down the stigma and shame that surrounds periods. The initiative was brought in after Starbucks employees in the Women’s Impact Network presented the solution to business leaders, as part of wider work in the company to normalise periods and improve period dignity in the workplace. In addition to helping end period poverty, the partnership supports TOTM’s mission to alleviate anxiety about working during a period. Holly Clarke, chair of Starbucks Women’s Impact Network EMEA, said: “The difference that providing free sanitary products can make to our partner’s experience at work is staggering, helping to improve accessibility for all and remove anxieties we know many people face around periods, especially when at work. The idea to partner with TOTM was born from a team of seven members of the Women’s Impact Network, a group of 140 partners who aim to empower women to find their own version of success and feel confident in their workplace. We’d love to see others in the industry take a similar stance and work towards eradicating period poverty across the UK.” Starbucks already offers its staff a range of benefits including free food and drink on shift; access to a paid apprenticeships programme; a bonus day of holiday for a special day each year, such as birthdays or weddings; and interest-free loans that can be paid back over 12 months, to cover the costs of a rental deposit when moving home.

Airship and Toggle offer free ticket for Propel’s Las Vegas study tour: Airship and Toggle are giving away a ticket to Propel’s Las Vegas study tour next month. A spokesperson said: “We want you to attend so badly that we’re giving the ticket away for free! All you have to do is drop your name (and email) in this metaphorical hat (aka the link below) and you could be in for an all-expenses paid adventure to Vegas on 25 March, with a full four-day itinerary with Sam Brown, Dan Brookman and the 30 other operators already signed up. Entry for the competition is open until midnight on Monday (20 February). We look forward to seeing one of you at the airport.” To enter, click here.

Job of the day: COREcruitment is working with a well-being company that is looking for a wellness, fitness and e-commerce managing director. A COREcruitment spokesman said: “As well as investment and the expansion of its physical business, the company is also developing itself into a multi-channel business with online services, e-commerce, and partnerships with major brands – globally. This is an excellent opportunity for a business scaler to get involved at an early stage of this expansion. A background in wellness/fitness would be a real advantage. For this role, the company is looking for a track record of developing and growing a business with multiple revenue streams – including e-commerce.” The salary is up to £120,000 and the position is based in London. For more information, email hollie@corecruitment.com

Licensing update: John Gaunt & Partners licensing solicitors has just published its latest licensing update. This month it includes some news for John Gaunt & Partners with the hire of Heidi Lawrance, who will join Luke Elford in its London office. There are also updates regarding the coronation and late-night levies. Leigh Schelvis also takes a detailed look into licensing considerations regarding security for premises. The full update can be accessed here.

Company News:

MeatLiquor – trading has been fine but the battle against rising cost of sales is relentless at the moment: Scott Collins, founder of MeatLiquor, has told Propel that current trading across the ten-strong business has been fine – taking in to consideration the numerous trade disruptions – “but as with everyone we're battling against the ever-rising cost of sales”. Collins said the group's performance in 2022 was really good, but he thinks it “will be less so for this year”. He said: “As an entrepreneur you have to be optimistic. This week it kind of feels like the weather's broken, it's a short pay day month and Valentine's was a good day across the board. We're not exactly what I'd call a romantic venue but we had a brilliant mix of people dodging the day and celebrating it. The fact they did proves that maybe we have still got something here.” Last year, the business closed its joint venture site with City Pub Group in Clapham and exited from Boxpark Croydon. The company, which operates eight sites in London and one each in Brighton and Leeds, has further opportunities lined up to expand in the capital. Collins said: "We've got two sites that we can take this year in London, but they are nice flexible deals. So, we don't have to take them and we're going to ride the next couple of months to see where the market is before we decide on how we progress with them. They're both very exciting sites.” It comes as the group reported turnover for the year to 27 June 2021 of £9,013,000 (2020: £13,032,000), with Ebitda of £559,000 (2020: £678,000) and a loss after taxation amounting to £198,000 (2020: £189,000).

Stonegate Group launches publicans support platform as it plans to invest more than £10m to ‘deliver better pubs’: Stonegate Group is investing more than £10m “to deliver better pubs for publicans and their communities”. To support this, its pub partners business has launched “Pub Hub”, a platform for publicans offering ideas and advice on how to grow sales, reduce operating costs and run a successful business. Among many new features, Pub Hub provides access to a suite of marketing content and supplier promotional activity as well as training programmes for publicans and their teams. “Pub Hub” is the latest in a series of improvements that Stonegate Group has implemented to enhance the support provided to publicans. Stonegate’s rating by its publicans has improved from 5.5 to 7.5 in the KAM Licensee Index report over the last two years. Nick Andrews, managing director of Stonegate Pub Partners, said: “Our investment in pub partners and the launch of ‘Pub Hub’ reflects our vision of being the partner of choice and supporting publicans to run excellent pubs that serve their communities.”

Heavitree finishes FY with numbers similar to pre-pandemic, energy costs a concern: South west tenanted pub operator Heavitree Brewery has said it finished its financial year to 31 October 2022 returning numbers similar to those achieved before the start of the covid pandemic. The business, which operates circa 65 pubs in Exeter and south Devon, said having reported a pandemic-affected small operating loss at the 2021 year-end, “it is pleasing the company returned a satisfactory performance in the second half of this year to follow the steady performance reported on at the half-year”. This resulted in an increase in turnover of 57.64% to £7,280,000 compared with £4,618,000 the previous year, while operating profit stood at £1,422,000 (2021: loss of £59,000). Chairman Nicholas Tucker said: “The much-reported hikes in the cost of living, rises in mortgage rates and the cost of doing business are inevitably putting pressures on the general trading environment for all our operators. Energy costs are of a particular concern, and we have seen some renegotiated contracts during the last six months that have resulted in a tripling, or even quadrupling of electricity and gas costs. Another example of the many inflationary pressures the sector is exposed to is reflected in the extraordinary wholesale beer price increases announced by one of our main suppliers; a 9% increase in September of last year followed by a further 15% increase in January of this year. These beer price rises are not immediately impacting our pubs due to timings within our contractual agreements, but some level of increase will be applied during the year ahead.” The company continued its programme of selling non-core assets to reduce the level of borrowing during the year. It said: “The term loan with Barclays has been reduced by £1,998,000 and overall bank debt that includes the overdraft facility has been reduced by £2,805,000 during the year under review. This programme will continue, and other sites will be considered when they become available.” It said that its net debt has reduced overall in the year by £3,539,000. Tucker said: “Our team has recently let three tenancies to new, quality operators. At present there are no vacancies within our estate.”

Cornish Bakery reports record profits and sales across tourist locations, high street sites show strong recovery, six new outlets set to open: Growing independent chain The Cornish Bakery has reported record profits and sales across tourist locations and strong recovery for its high street stores for the year ending 30 May 2022. The company reported an Ebitda profit of £4.2m and a pre-tax profit of £3.1m, alongside major ongoing investment in new openings. The business said record sales and profit margins were achieved across tourism locations, with a strong recovery also evident in its high street and factory outlet centres. Cornish Bakery also enjoyed a “lucrative” partnership with the Commonwealth Games at the NEC in Birmingham, where it now has five outlets. During the year, new bakeries were opened in Plymouth Barbican, Beverley, Stamford, Rye, Whitby and Caledonia Park in Scotland. The company is set to open six new branches in the coming months – in Truro, Bakewell, Canterbury, Cheltenham, Harrogate and Bury St Edmunds. In line with its commitment to internal culture and a motivated team, Cornish Bakery’s lowest ever staff turnover is currently being recorded. Its employee net promoter score moved from “good” to “great”, while an “industry-leading” net promoter score of 57% was achieved across the full estate. The period also saw Cornish Bakery’s first full year of operation under a rebrand, which has been rolled out via eight high-end refurbishments over the winter months. Cornish Bakery founder Stephen Grocutt said: “Aim higher is one of Cornish Bakery’s core values, and we just keep going higher and higher. Winning beautifully is very important to us, and I draw great satisfaction seeing many happy teams and customers. I’m delighted Cornish Bakery is raising the quality bar across the sector. Just watch us in 2023!”

Former Barworks senior ops team duo secure first site for new pub venture: Mike Harrington and Lee Godwin, previously part of the senior operations team at London bar group Barworks, have secured the first site for their new pub venture, Propel has learned. The duo left Barworks in September last year to launch Breaking Glass Bars. Now the company has exchanged on the William IV pub in Shepherdess Walk in London’s Islington. Godwin told Propel: “We plan to restore the site to a traditional pub in keeping with its history, reinstating the first floor function rooms and commercial kitchen. The offering will consist of a modern British menu as well as a premium drinks range at an accessible price point. The site will be self-funded and we will look to secure investment funding for expansion of the group later in the year.” Harrington had been part of the operations team at Barworks since 2013, becoming head of operations in 2015, and then operations director in 2017. Godwin had been senior operations manager since 2015, and together they oversaw the expansion of the group from six sites to a peak of 19, before the business sold 13 venues to Urban Pubs & Bars in December 2021.

Cocktail bar concept Peachy Queen secures central London site: Cocktail bar concept Peachy Queen is set to open a flagship site in central London, after securing a site in Covent Garden. Propel understands the concept, which is owned by the Good Time Group, has secured the former Abandon Ship site at 63 Neal Street for an opening later this year. The Good Time Group was founded in January 2021 by brothers Matt and George Machan. The first Peachy Queen opened in Bournemouth, in July 2021, with a second opening in Putney last April. Peachy Queen is described as a “bar that serves iconic cocktails delivered by our rockstar family – a home away from home where you come for one drink and party all night, scandalously good times”. CDG Leisure acted on behalf of the landlords on the Covent Garden deal. 

Greene King receives approval for its goal to halve greenhouse gas emissions by 2030: Brewer and retailer Greene King has announced the Science Based Targets initiative (SBTi) has approved its near-term science-based emissions reduction target. Last year, Greene King committed to reducing absolute scope 1 and 2 greenhouse gas (GHG) emissions by 50% by 2030 from a 2019 base year and reducing absolute scope 3 GHG emissions 50% within the same timeframe. Those targets have now been verified by the SBTi. Greene King chief executive Nick Mackenzie said: “We know the scale of what has to be done and this is an important milestone as it shows our climate action plan is based on science. The hard work starts now as we are just starting out on our journey and beginning to put our commitments into practice. The climate crisis is the greatest challenge of our time, and it’s clear from climate science findings that nothing less than rapid and deeps cuts to emissions before 2030 are required. It’s vital we play our part in this – it’s the right thing to do, helps our customers make more sustainable choices and ensures the long-term commercial sustainability of our pubs and breweries across the UK.” Greene King has also publicly committed to being net zero by 2040, and plans to submit this net zero commitment to the SBTi for approval later this year. 

St Austell Brewery appoints new finance director: St Austell Brewery has appointed Philip Dainton, formerly of Medex Scientific and the Thresher Group, as its new finance director. Dainton joins the Kevin Georgel-led business after six years as finance director at the Horsham-based Medex Scientific. Previous to that he spent eight years at MVision Private Equity Advisors, three and a half years at Kew Green Hotels and four years at the Threshers Group. In his new role he will support St Austell chief financial officer Colin Stratton. 

Exclusive Collection acquires McDonald’s Hotels site in north Warwickshire: Independently owned hotel business Exclusive Collection has acquired Ansty Hall in north Warwickshire from Macdonald Hotels. The 62-bedroom property, near Coventry, becomes the seventh country-house hotel in Exclusive Collection’s privately owned portfolio. The hotel will be operated in tandem with the other Exclusive Collection properties while a new brand identity is established alongside the completion of any initial capital expenditure projects. Managing director Danny Pecorelli said: “It’s been a long-term ambition to extend our reach towards the Midlands and Ansty Hall fits nicely with the collection through its significant history and stunning setting. We will be embedding B Corp standards and our core values into the hotel and its people, gently bringing the hotel in line with the Exclusive Collection brand. While each of our properties has its own voice and history, they’re all united by our purpose to create happiness in amazing places, with a real emphasis on using our business as a force for good.” Knight Frank acted on the deal.

Gail’s make north west debut: Fast-growing bakery brand Gail’s has opened its debut site in the north west, in Wilmslow, Cheshire. The site has opened in the town’s Water Lane with the site’s design taking inspiration from the local historic Quarry Bank textile mill. Last month, the Bain Capital-backed business confirmed it had lined up two further openings in the region – on the former White Stuff unit in Manchester’s King Street, and a unit in Shaw’s Road, Altrincham. Both are expected to open later this year. It has also submitted plans to convert the former La Boutique d’Or site in King Street, Knutsford. The opening of sites in the region reinforces the company’s long-standing ties to the area following The Bread Factory, Gail’s sister-brand and wholesale bakery, opening its Manchester bakery in Openshaw in 2017. To support its launch in the region, Gail’s has also linked up with Eat Well MCR, the hospitality collective, which operates across Greater Manchester and is all about “offering care and support to the most side-lined and vulnerable people by providing them with delicious and nutritious meals”. 

Rhubarb opens new Italian restaurant and cafe concept at London’s highest public garden: Rhubarb Hospitality Collection, the premium international hospitality group, has opened a new Italian restaurant and cafe concept in London. Larch is located at 1 Sky Garden Walk in the City and joins Rhubarb’s portfolio of bars and two restaurants within London’s highest public garden. On the ground floor, Larch houses an informal cafe serving coffee, freshly prepared sandwiches and pastries alongside a boutique store offering a curated range of gardening paraphernalia and books, souvenirs, gifts and illustrations. Upstairs, the 50-cover restaurant and bar showcases an Italian-inspired menu with a selection of antipasti, pasta, pizza and large main plates, alongside a dedicated “burrata bar”. There is also an extensive wine and cocktail list, with beer and spirits available. Outside there’s an additional 50 covers on the terrace. PB Jacobse, chief executive of Rhubarb Hospitality Collection, said: “We very much see this restaurant as part of the Sky Garden family, and we’re looking forward to seeing Larch carve out its own reputation.”

Connection platform for self-employed hospitality workers completes £29m Series B funding round: An online platform that connects self-employed chefs, waiters, bartenders and front-of-house staff with major hospitality brands has completed a £29m Series B funding round led by Balderton Capital. Launched in 2016, Brigad operates in France and the UK, in the hotel and restaurant, health and care sectors. The platform enables freelance professionals to pick and choose their hours and place of work. In the UK, Brigad operates in London, Manchester and Birmingham, and will expand into other major UK cities in the next 18 months. Alongside Balderton Capital, Wendel Group, Serena Capital and Square Capital also joined in the round, which takes Brigad’s total fundraising to £45m. The funding round will accelerate Brigad’s expansion, while the business also plans to offer more tools and events through the platform, reports Insider Media. Co-founder and chief executive, Florent Malbranche, said: “The labour market has experienced profound changes in the last two to three years and the hospitality industry is living with the fallout. We can’t afford to lose a generation of skilled hospitality industry staff, and Brigad’s platform means we don’t have to. Brigad’s mission is to make work attractive and accessible to all, and that means we respect and value the professional talent on our platform, providing them with missions that suit their skills and higher rates of pay.”

The Marksman team partners with Kerb to open seafood-led restaurant at National Theatre: The team behind Hackney pub The Marksman will open a new seafood-led restaurant at the National Theatre on London’s South Bank in May. Jon Rotheram, Tom Harris and John Ogier, who opened their east London pub in 2015, will launch the 90-cover Lasdun in partnership with street food collective Kerb, and promise a menu featuring “timeless brasserie style dishes brought to life through a classic yet contemporary lens”. The restaurant will take inspiration from the theatre’s modernist design and, the trio added it “aims to reinvent traditional notions of theatre dining”. The name itself is a tribute to Denys Lasdun, the architect who designed The National. Each dish will feature “seasonal, locally sourced ingredients, showcasing the very best produce Britain has to offer”. The menu will include signatures from The Marksman, such as seasonal pies to share, savoury buns, and the pub’s butter and honey tart. Grilled chops, baked whole fish and “classic” sides will also be on offer, alongside other fish-oriented dishes created for the Lasdun menu. 

Leon makes Welsh debut: Natural fast food brand Leon has opened its first site in Wales, at the Roadchef Magor motorway service station in Newport. Located on the M4, the site offers Leon’s organic and sustainable Mediterranean-inspired food including grilled wraps, rice boxes, poached egg breakfast pots and triple-certified coffee. Glenn Edwards, managing director at Leon Restaurants, said: “It’s really important for us to make our restaurants accessible to people up and down the UK. We’re delighted Roadchef is opening not only our first Leon in Wales, but the first Leon outside of England in the UK, a very exciting milestone for our brand.” 

Leeds’ first Filipino eatery opens: Leeds’ first Filipino eatery has opened. Kanto, which is the brainchild of two Filipino chefs – father-and-son team Cezar and Isaac Javier – has launched in the suburb of Beeston, just outside the city centre. Kanto, which is predominantly takeaway and based at 1 Ring Road, offers fresh Asian homestyle food influenced by the cuisines of the Philippines, Korea and Japan. The menu includes Katsu curry as well as Filipino Lechon Kawali pork chop. The Javiers have worked across numerous kitchens in the region. Cezar said: “There are a lot of new Asian restaurants opening in Leeds but both affordability and quality food are hard to come by. Kanto Leeds will be a place where you can expect an eclectic mix of consistently delicious pan-Asian style food at an accessible price for all.” 

One Aldwych narrows losses: London independent luxury hotel One Aldwych narrowed its losses in the year ending 31 March 2022. Turnover grew from £503,324 in 2021 to £7,071,469. This compares with £9,023,888 in the year ending 31 March 2020. Its pre-tax losses narrowed from £5,644,633 in 2021 to £4,078,056 (2020: loss of £6,305,030). It received £436,240 in government grants (2021: £2,345,742). 

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