Propel Newsletter Archive Page

Popeyes UK CEO – ‘tech brand selling chicken’ is in good shape, looking to open 20-plus sites a year: Tom Crowley, UK chief executive of Popeyes Louisiana Kitchen, has said TDR Capital’s recent £50m investment in the 30-strong business has put it in “good shape” for further growth, with a target of opening 20-plus sites a year. Crowley told this month’s Propel Multi-Club Conference the US fried chicken quick-service restaurant brand will have 35 sites in the UK by the end of 2023 and could reach 60 by the end of next year. When it launched in Britain in November 2021, the business put down an initial target of having 350 UK sites within ten years. He said: “From the very beginning, I wanted to understand how this would work in Nottingham, in Gateshead and in Liverpool as much as London. If this is going to scale the brand, you need to understand that very quickly. London is on the agenda, but for me it’s not a priority. The priority is growing the brand across the UK. It’s a global quick service restaurant (QSR) brand and has 4,000 restaurants across the globe. Very good QSR brands in the UK are above 500 stores. Looking at what we’ve got at the moment, we don’t see any real challenge with that. But right now, the focus has to be on the stores we’re trading and the next door we open.” Crowley said TDR’s investment was a “big landmark” for the business. He added: “It secures our growth for the next three years. So, within that time, we should be self-funding. There is a good chance that the business in three years’ time is growing at the same speed that we are now but without debt, which would be a phenomenal place to be. We are in good shape. I think around 20 a year feels about right. You have to normalise change because you open one and it’s chaos. Then you open three in a row and it’s still chaos. Then you open ten and it’s bigger chaos, but you have to normalise the growth rate. You get to a place where opening stores at one or two a month is normal for the business, and I think we"re now approaching that moment. We'll be at 35 by the end of this year, and I think 60 by the end of next year.” Crowley said technology has played, and is still playing, a huge role in the UK journey for the brand. He said: “Genuinely, I think I see this as a tech brand selling chicken. We’ve built our own ordering platform. In QSR, the consumer demand for tech is astonishing. Being there and being able to be at the front of that is really important. There has been a lot of talk about artificial intelligence and I think it’s coming at pace. Again, being small and nimble, you get the opportunity to try things, and if it does work, you can scale it. Tech is critical for the success of this business.” Crowley’s presentation will be among the videos from the Propel Multi-Club Conference that Premium subscribers will be given exclusive access to on Friday (29 September) at 9am. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription.

Industry News:

Restaurant Marketer & Innovator Awards opens for entries: The Restaurant Marketer & Innovator Awards have opened for entries. The awards, in their sixth year, recognise outstanding marketing and innovation in the sector and the closing date to enter is 11.59pm on Friday, 27 October. Awards are open to restaurant, bar and foodservice outlets. There are 14 categories: Best Communications; Best New Product Development; Best New Website; Best New/Improved Visual Identity; Best Digital Engagement; Best Use of Technology; Best Community or Charitable Initiative; Best Use of Data, Insight or Research; Innovation of the Year; Campaign of the Year; Launch Campaign of the Year; Marketer of the Year; Innovator of the Year and Future Marketing Leader of the Year. To recognise the important relationship between agencies and their foodservice clients, the awards will recognise both the operator and all agencies involved in the delivery of campaigns and projects. Past winners have recognised more than 50 brands and agencies including McDonalds, Honest Burgers, Brewhouse & Kitchen, BrewDog, Turtle Bay, Fuller’s, Wagamama, Gail’s Bakery, YO!, Grind, Rick Stein, Searcy’s, Boxpark, PizzaExpress, Greggs and The Breakfast Club. Finalists will be invited to an awards ceremony on Wednesday, 25 January, in London. The awards will be delivered alongside the Restaurant Marketer & Innovator Summit. Awards co-founder James Hacon said: “As the sector continues to react to the aftermath of unprecedented trading challenges over the last few years, we are seeing leaders start to refocus from survival alone to thriving with improved customer experience, enhanced brand innovation and evolving business models. Marketing, strategy, development and innovation roles are becoming increasingly important to the leadership mix. These awards continue recognising the success of brilliant brands, talented teams and individuals.” Propel managing director Paul Charity added: “We launched this event six years ago and have had thousands of people from across Europe attend the various segments. The awards recognise the very best within the spheres of foodservice marketing and innovation.” More details will be announced soon. Categories, entry information and judges can be found by clicking here.

Premium subscribers to receive two databases and access to videos from Propel Multi-Club Conference and summer party this week: Propel Premium subscribers are to receive two databases this week. The updated Propel Multi-Site Database, which is produced in association with Virgate, will be released on Friday (29 September), at midday. It will include 56 new multi-site companies, taking the number of companies featured to 2,983. Before that, the updated UK Food and Beverage Franchisor Database will be sent to Premium subscribers at midday tomorrow (Wednesday, 27 September). Ten new companies have been added, while five that are no longer franchising or trading have been removed, taking the total to 215 businesses featured. Premium subscribers are also to receive access to all the videos from this month’s Propel Multi-Club Conference and summer party. They will be sent 12 videos on Friday at 9am. Premium subscribers also receive access to four other databases: the New Openings Database; the Propel Turnover & Profits Blue Book; the Who’s Who of UK Food & Beverage; and the UK Food and Beverage Franchisee Database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before; regular video content and regular exclusive columns from Propel group editor Mark Wingett.

Only a Pavement Away celebrates placing 400 members into hospitality roles: Only A Pavement Away, the industry charity aiding prison leavers, veterans and those facing homelessness find employment in the hospitality sector, is celebrating placing 400 members into hospitality roles. It comes as the sector charity raised £42,000 from its fourth annual Cook & Dine event, which will go towards its ongoing mission to provide pathways out of homelessness into purposeful employment within the industry. Only A Pavement Away has set out to place 5,000 people into employment over the next five years. Its chief executive, Greg Mangham, has also been honoured with prime minister Rishi Sunak’s daily Points of Light award, in recognition of the invaluable work the charity has done over the past five years. Mangham said “I am honoured to have been awarded the Points of Light award and be part of placing 400 members into work. This is such an important milestone, and none of it would have been possible without the support of the industry at amazing events such as this. Thanks also to Tom Aikens, our newly appointed patron, who prepared such a fabulous meal for us all with the support of volunteers from across hospitality.” Only A Pavement Away is seeking further hospitality partners interested in supporting the charity.

Company News:

Brighton Pier Group CEO – underlying business remains solid, bar portfolio is sound and will pick up again: Brighton Pier Group chief executive Anne Ackord has told Propel the underlying business remains “solid” and its bar portfolio is “sound and will pick up again”. During its interim results, Ackord said trading continues to be impacted by events “outside our control” in what is a challenging environment. The company reported for the 12 weeks to 17 September 2023, total sales were £12.3m, down £0.3m versus the previous year with train strikes, inclement weather and a major fire at the Royal Albion Hotel opposite the pier all disrupting trade. Ackord told Propel: “We are cautious on our outlook. However, the business fundamentals are good, and if you take away the external factors that affected the first half, then the business remains well placed. For example, The Pier is a totally unique free to enter asset and has a wide demographic. Take away the train strikes and other one-off factors, and the underlying business remains solid.” The eight-strong bars division “continues to be impacted by the headwinds in the UK economy”, with its younger demographic “more severely affected by price inflation, resulting in lower spends and reduction in numbers of visits”. Total sales for the 12 weeks to 17 September 2023 were £1.9m, down £0.3m versus last year. Ackord said: “The bars portfolio is sound and will pick up again. We have made two management changes, putting new teams in two key sites that are already showing results. In central London, our Belgian bar, Lowlander, has been affected by roadworks and pedestrianisation for some time, but it is performing well despite this, and once the roadworks are completed, it should receive a significant boost. Overall, the bars have been impacted by economic circumstances, so interest rates starting to slow and inflation coming down will hopefully benefit not just the bars but the group as a whole.” Ackord also said the group remained in a position to add to its portfolio. “We are always looking at growing both organically and by acquisition, and if an acquisition opportunity arises that fits our strategy and existing businesses, then we will pursue it,” she said.

Permanently Unique Group reports ‘strong’ FY trading: Permanently Unique Group, the independent restaurant business formerly known as Tattu, reported strong trading in 2022, with a 27% increase in like-for-like sales – generating turnover of £27m, Ebitda at a site level of £6.2m and company Ebitda of £4.7m, Propel has learned. The business said it saw its highest turnover to date following the first full year of trade post-covid and the launch of its London flagship restaurant last May. Adam Jones, founder, told Propel: “The company enjoyed significant success post covid which allowed us to invest substantially into London, and more recently in establishing our new Greek-Mediterranean concept Fenix, due to launch in Manchester later this year. The current trading year isn’t without its challenges, given the combination of higher costs and decreasing consumer confidence. We are very fortunate that even in this climate, the group is on target to grow sales and maintain profit at a high level. This will place us in a solid position to continue expansion both in terms of launching new brands and our first international Tattu outpost next year.” Earlier this year, the business rebranded as Permanently Unique as part of plans to launch a new concept and grow the brand internationally. The high-end restaurant group, which was founded in Manchester in 2015 by brothers Adam and Drew Jones, said the updated name comes at a time of growth for the business both in the UK and internationally. A further site in Manchester is penned in for 2024, which will debut a third brand new concept for the group, embodying “live music, refined cuisine and a show stopping drinks programme”. Last year, the business entered the London market with the launch of Tattu London at The Outernet development, following the success of its existing locations in Leeds, Birmingham and Edinburgh and the original Tattu in Manchester.

North Lincolnshire and East Yorkshire McDonald’s franchisee reports business ‘recovering strongly despite challenging trading conditions’: Kingston Restaurants, which now operates nine restaurants in north Lincolnshire and East Yorkshire, has reported the business is recovering strongly from the covid pandemic “despite challenging trading conditions”. Turnover fell slightly to £59,573,181 for the year ending 31 December 2022 compared with £59,718,473 the year before. The company said this was primarily due to the sale of its Bridlington restaurant in June 2022, along with the temporary closure of two outlets for refurbishment and the normalisation of the VAT rate in April 2022. The business, which sold two more its sites in February 2023, saw pre-tax profit drop to £2,822,508 from £5,862,316 the previous year. In his report accompanying the accounts, owner George Michniewicz stated: “During 2022, the company has continued to deliver sound results and continues to recover strongly from the pandemic despite some difficult and challenging trading conditions. Operating profit has reduced significantly. This is reflection of the high inflationary trading environment we have experienced driven by food and packaging, labour and utility costs, along with the VAT impact. The demand for home delivery food has slowed primarily as a result of the pressures on household incomes. Going forward, as cost pressures mount, we are increasingly focused on initiatives that enhance efficiency and productivity, helping to offset some of these headwinds. We have resumed our capital programme that has proven to deliver value by enhancing the customer experience. The programme will be rolled out over the next three years involving significant capital investment. Two restaurants have already been completed with a further two planned in 2023.” The business did not receive any government grants (2021: £20,627). The company paid dividends during the year of £700,000 (2021: £120,000). Since the year end, dividends totalling £550,000 have been declared. Polish national Michniewicz began working for McDonald’s in the 1980s and oversaw the launch of the brand in his home country. He became a franchisee in 1993, when he acquired the restaurant in Jameson Street in Hull city centre.

Arc Inspirations to open first East Midlands site: Arc Inspirations, the Martin Wolstencroft-led, premium bar operator, is gearing up to open its first East Midlands site. It will open a bar under its BOX brand on Thurland Street in Nottingham city centre in November, for its 20th site over its Banyan Bar & Kitchen, Manahatta and BOX brands. A high-quality sports bar and kitchen concept, there are already BOX locations in Leeds City Centre, Headingley, Deansgate in Manchester and Brindleyplace in Birmingham. Set in the grade II-listed former Nottingham and Nottinghamshire Bank, the new bar will be set over 16,000 square feet and can hold 650 guests over two floors. Two private party rooms upstairs will be named The Bow and The Arrow, while there will also be two 18-foot shuffleboard tables and three electric dart boards. The food menu will feature tater tots, a N’duja and hot honey pizza and a pizza fondue – alongside burgers, kebabs and more. Arc is also on a lookout for a Nottingham city centre location for its New York-inspired cocktail bar concept, Manahatta, after the company withdrew an application earlier this year to open on Victoria Street. Wolstencroft said: “We have been looking forward to opening our first-ever venue in the East Midlands. Nottingham is home to some of the best sports fans in the country, so we’re confident that a premium sports bar like BOX will fit right in. BOX has been a huge hit in major cities like Leeds, Manchester and, most recently, Birmingham, and we feel like this is the right time to bring the brand to the East Midlands.”

Roxy Leisure appoints Tom Hodgson as group property director: Roxy Leisure, the operator of the Roxy Lanes and Roxy Ball Room concepts, has appointed Tom Hodgson as its new group property director. Hodgson joins the business after 14 months as property acquisitions manager at Mission Mars, the Albert’s Schloss and Rudy’s Pizza Napoletana operator. He also previously worked for property advisory firms Pudney Shuttleworth and Christie & Co. Earlier this month, Roxy Leisure confirmed its third site in Liverpool will open in November. Roxy Lanes Liverpool School Lane will focus on ten pin bowling alongside American pool, shuffleboard, ice-free curling, tech darts, karaoke, beer pong and more. It will add to the company’s Roxy Ball Room Hanover Street and Cavern Quarter locations, which are both over-18s only, while the new Roxy Lanes will be open to under-18s during selected times. There will also be an updated food menu featuring premium Italian focaccia pizza and signature drinks. The Roxy Leisure group currently has 17 sites across the UK and said the Liverpool launch is part of its “extensive expansion plans”. The business is understood to be targeting a 19-strong estate by the end of the year, and aiming to add five more in 2024.

Kent-based Costa franchisee sees turnover grow but profits fall: Kent-based Costa franchisee Goldex Investments saw its turnover grow but profits fall in the year ending 31 October 2022. The business, which operates 46 Costa stores across Kent and Sussex, reported turnover increased from £11,520,781 to £12,174,994 in the period. But its pre-tax profit dropped from £2,223,997 to £690,000 as costs rose by just under £1.4m. Dividends of £175,000 were paid (2021: £269,688). Chief executive Diljit Brar, who founded the business in 2008, said: “In the past year, Goldex Investments and its subsidiary companies have maintained their share of the market with their existing stores. The turnover of Goldex Investments is derived from running Kent based stores, managing the trading activities of its subsidiary companies and other trading activities. The company has recovered and maintained its income post pandemic, despite the increased cost of living and the associated increased cost of sales. The company is well placed in the market for 2023 with strong demand in the restaurant sector. There are no plans to open any new stores in the next financial year. The director of the group proposes to continue its expansion of acquiring shops under the Costa franchise chain throughout the south east of England.” While the accounts are just for its UK-based Costa business, the group also operates three Costa sites in Morocco and has signed for three further travel hub sites in the north African country. It is the also the UK master franchisor for Kaspa’s and operates more than 100 of its stores here, as well as in two overseas territories, and also runs four German Doner Kebab sites here. It is also behind gym brand Goldex Fitness, an estate agency in Gillingham and a portfolio of coastal break apartments on the Kent coast.

Whitbread acquires City of London site for £56.5m for new Premier Inn, ‘structural shift in capital’s office market presenting opportunities’: Whitbread has acquired the freehold interest in New London House at 6 London Street, in the City of London, for a new Premier inn hotel. The 89,722 square-foot office, retail and restaurant building was acquired from clients of Orchard Street Investment Management for £56.5m.Whitbread intends to seek planning consent to repurpose and extend the building into a hotel-led, mixed-use development with a mix of complementary uses together with new public spaces. Jonathan Langdon, senior acquisition manager at Whitbread, said: “The City of London’s appeal as a business and leisure destination continues to underwrite our investments in new hotel developments in the Square Mile.” Whitbread has more than 25 years’ experience converting former office buildings into Premier Inn and hub by Premier Inn hotels, with two such developments in the City of London currently under construction, at Farringdon and Moorgate. Mark Anderson, managing director for property and international at Whitbread, said: “We are seeing a structural shift in the London office market, presenting opportunities to acquire office buildings that are no longer fit for occupier and investor purposes and to reposition and refurbish them into successful hotels. Our strong balance sheet, plentiful liquidity and ability to buy and develop freehold property, which is rare in our sector, leaves Whitbread very well-placed to take advantage of this structural shift.” Whitbread was advised by Frame Real Estate Partners. Orchard Street Investment Management was advised by Cushman & Wakefield.

Longboys to double estate next month with two new openings including biggest site yet, plans UK expansion: Gourmet finger doughnut concept Longboys is set to double its estate next month with two new openings, including its biggest site yet, ahead of plans for nationwide expansion. The business said its new sites in Liverpool Street, opening on 17 October, and Borough Yards, launching on 27 October, are “cementing plans for expansion across the UK”. Borough Yards will be the brand’s biggest site yet, offering 45 covers split across two floors, with counter dining at ground level, while Liverpool Street will operate as a grab-and-go concept. They will join its existing stores at Coal Drops Yard and Boxpark Wembley, with the doughnuts also being sold in Harrods and Selfridges. Founder Graham Hornigold, former pastry chef at the renowned Lanesborough Hotel and with Hakkasan group, said: “This is a really exciting time for us as a brand, our expansion plans are taking shape. We want as many people as possible to enjoy our doughnuts, they’re the real deal. More sites means more opportunity, and we’d love to introduce new products and offer an interactive element to our customers in the future, so watch this space.” Both new sites will offer the brand’s new autumn range of flavours, including sticky toffee pudding, coconut chocolate, vanilla malt and apple crumble.

Atlas Hotels reports revenue so far in 2023 up 23.1% on last year, Ebitda increasing 13.6%: Franchise hotel group Atlas Hotels has reported revenue in 2023 is currently up 23.1% on last year, with Ebitda 13.6% ahead of 2022. Occupancy for 2023 to date has increased to 75.2% compared with 68.0% for the same period in 2022. The group has entered into an agreement to hedge its energy costs post October 2023 for a further two years. Atlas Hotels is in the early stages of preparing to refinance its external £313m debt and plans to start the process formally in the first quarter of 2024, with its current term due to end in December 2024. It comes as the company, which operates 58 sites across the UK, the majority under the Holiday Inn Express brand, reported turnover increased 42% to £143,502,000 for the year ending 31 December 2022 compared with £101,008,000 the previous year. The business generated Ebitda of £37,706,000 (2021: £37,097,000), despite including a fair value loss of £16,965,000 (2021: £1,953,000 gain) on the group’s investment properties and land and buildings. Pre-tax losses narrowed to £9,752,000 from £12,248,000 the year before. In his report accompanying the accounts, director Desmond Taljaard stated: “Based on the performance of the start of 2023 and the measures taken to control costs, we are confident the full-year performance will exceed budget.” The group did not receive any government grants (2021: £788,000). No dividend was paid (2021: nil).

Drop founders to launch third site independent of concept: Drop founders Will Palmer and Ian Campbell are set to launch a third site independent of the bottle shop and wine bar concept. The duo launched Drop as a virtual wine cellar service in 2021 and have since grown it to four sites across London – in Drury Lane, Dulwich, Clapham and Kensington. They also operate 10 Cases wine bar and bistro and Parsons seafood restaurant, both in Covent Garden, and will next month launch “all day European-inspured cafe” Baudry Greene in the same area. It will open at 20 Endell Street on 12 October, across the road from Parsons, reports Hot Dinners. “Our sister fish restaurant, Parsons, was named in tribute to our founders’ mothers, both of whose maiden names were, remarkably, Parsons,” Palmer and Campbell said. “Baudry Greene continues the tradition and is named after Will and Ian’s wives’ respective maiden names.” The breakfast menu includes the likes of pan con tomate and tartine au beurre before turning to a range of sandwiches, salads and soups later in the day. In the evening, it will offer classic cocktails and a wine list alongside snacks like truffled egg, cheese bites, gildas and a ‘nudja sausage roll with honey.

Inamo to launch new Market Place location as further expansion planned: London tech-restaurant group inamo will next month open a new location for its sushi and fusion street food sub-brand inamo sukoshi, created for use in food court operations. The first two sites opened in 2022, in Market Halls Oxford Street and Canary Wharf, and the third is now due to open at the 200-seat Market Place Vauxhall. It will serve inamo favourites such as dragon rolls and bang bang cauliflower, alongside a selection of sushi and Asian tapas including ramen, katsu curry and poke. Chief executive Lee Skinner said: “We are delighted to be partnering with Market Place and continuing to expand our inamo sukoshi portfolio. We are keen to explore more opportunities to grow the brand within food hall locations. It’s a fantastic feeling for the whole team to be opening another new site!”

Team behind Trailer Happiness to launch new west London neighbourhood restaurant: The team behind west London tiki cocktail bar Trailer Happiness is set to launch a new neighbourhood restaurant at the same location. Sly Augustin has operated Trailer Happiness out of the basement of 177 Portobello Road in Notting Hill for 20 years, and is now turning the main building, which used to be the Portobello Market store, into a restaurant called Portobello 177. Opening next month, it sees Augustin partner with hospitality consultant Maiko Neill, who is marketing and events director at Trailer Happiness and former restaurant operations manager at Selfridges. Head chef Shay Ola, of the Rebel Dining Society, will lead a menu of “sharing-style dishes with a focus on sustainability and seasonality, with a nod to Caribbean and Japanese barbecue culture”. Dishes will include grilled prawns with tare, fermented mango, lemongrass vinaigrette, chili crisp and furikake; and braised oxtail served with burnt padron pepper puree, caramelised carrot puree, carrot tops and sorrel leaves. As well as wine and cocktail lists, there will be the chance to purchase the restaurant’s weekly “wild card” wine, alongside a wide selection of rums, from an attached bottle shop on Elgin Crescent. The 50-cover restaurant will also feature terrace seating on both Portobello Road and Elgin Crescent. Neill said: “It was always a dream to own a restaurant on Portobello Road, and to create a special and welcoming food destination, unique to the area, that really celebrates incredible flavour and produce at the heart of its menu.”

Suffolk and Essex operator boosts turnover but profit falls due to inflationary pressures: Milsom Hotels, a small chain of boutique hotels and restaurants in Suffolk and Essex, has reported turnover increased 6.3% to £12,130,707 for the year ending 31 March 2023 compared with £11,411,250 the year before. Pre-tax profit was down to £618,846 from £1,630,765 the previous year. Gross margin fell to 74.4% from 75.6% due to inflationary pressures. In their report accompanying the accounts, the directors stated: “The company is investing in consolidating its position in the market by continuing to deliver exceptional customer service and its locations being great places to eat, drink and stay.” The business did not receive any government grants (2022: £224,434). A dividend of £180,000 was paid (2022: £130,000). The group, which was founded when the late Gerald Milsom bought the Talbooth Restaurant on the banks of the River Stour in Dedham, also comprises The Pier in Harwich, Milsom’s in Dedham and Kesgrave Hall, Ipswich, as well as an outside catering business.

Former P Franco head chef to lead menu at new Italian restaurant in Hackney: Former P Franco head chef Mitchell Damota will lead the menu at a new Italian restaurant opening in Hackney next month. Damota is one of three Italian friends – the others being brothers Gennaro and Gianmarco Leone – behind Dalla, which is set to launch in mid-October. The 25-cover venue will open on the former site, at 120 Morning Lane, of the yakatori-inspired Peg restaurant, which like P Franco, was led by Liam Kelleher and Phil Bracey. Peg closed in July 2022 after three years of trading, followed in March this year by Kelleher and Bracey’s other sites – P Franco, Bright and Noble Fine Liquor. As well as P Franco, Damota was head chef at Shoreditch pasta emporium Burro e Salvia, while Gianmarco has worked at Claridge’s and Gennaro has a background in design and events. Gennaro told Hot Dinners the food at Dalla will be homestyle Italian cooking with short, produce-led menus and an Italian-led wine list. “I always wanted to have a place to share all my passions,” he added. “We don’t want it to be trendy, but somewhere you can come back to twice in a week, and after ten years it’ll still be good. A peaceful corner in an area that’s really crazy busy.”

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