US hot sandwich concept eyes short-term target of 30 UK sites as it prepares to launch national franchise: US hot customisable sandwich concept Which Wich is eyeing a short-term target of 30 UK sites over the next three years as it prepares to launch franchise opportunities here. The brand, which has grown to more than 300 sites globally since being founded in Dallas in 2003, first entered the UK market in 2018 with a debut store in London’s Covent Garden. It has since added a virtual kitchen in Shoreditch and is planning another location later this year. With the time ripe for growth, it will next month launch a national franchising campaign that it hopes will attract both multi-site territory and single-site operators. It has built an experienced advisory board to assist with its growth plans – including former Mitchells & Butlers managing director Kevin Todd and director of marketing Ian Dunstall; ex-Greggs sales and marketing director Michelle Young; and experienced food and beverage consultant Alison Vickers. “We’re looking at 30 locations in the immediate three years, and that is a conservative estimate,” Which Wich UK master franchisee Rami Awada told Propel. “We’re going to be taking the brand national – we have the UK rights, and after successfully adapting the brand to fit the UK market, we’re going to be targeting people throughout the territory. One of our key strengths is the flexibility of our model – you can operate a Which Wich from as small as 500 to more than 3,000 square feet of store space. You can have it as a fast casual store in the high street, as a cloud kitchen, mall location or even a kiosk. We’re now being invited to tender for airport and rail locations. We’ve developed relationships with the major catering marketplaces in London, and after the potential that we witnessed within the corporate catering world, we opened up our direct catering channels and have grown that business by 300% year-on-year for three years.” With a Lebanese background but hailing from Canada, Awada said he arrived in London five years ago with a desire to get into food franchising and initially targeted London “because a lot of the brands expanding from the Americas into Europe come to the UK first”. He added: “We saw a lot of London being dominated by average grab-and-go offerings – I didn’t see any that offered a high quality customisable hot sandwich that had relevance for all dayparts. In my travels within the US, I had become very attracted to Which Wich with its brand personality and strong brand differentiation, and was excited by the potential to introduce the brand into the UK market.” Which Wich will feature in the next Propel UK Food and Beverage Franchisor Database, which is an exhaustive guide to the companies offering a food and beverage franchise in the UK and is available exclusively to Premium subscribers. The database is updated every two months and the latest version features 215 businesses. 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. 

Pret UK MD Clare Clough to speak at final Propel Multi-Club Conference of 2023, three free places per company for operators: Clare Clough, UK managing director at Pret A Manger, will be among the speakers at the final Propel Multi-Club Conference of 2023. The conference takes place on Thursday, 16 November, at the Millennium Gloucester Hotel in London’s Kensington, and is open for bookings. The all-day conference will focus on “progress in an era of strong headwinds”. Clough will talk about the transformation of the iconic brand from London-focused grab-and-go operator to an omnichannel, nationwide business. For the full speaker schedule, click here. Operators can book up to three free places per company by emailing kai.kirkman@propelinfo.com.

 

Premium subscribers to receive new edition of The New Openings Database today: Premium subscribers will receive the new edition of The New Openings Database today (Friday, 6 October), at midday. The database will show the details of 894 site openings, including which company has opened a site or its plans to open one in the future. It will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published on a monthly basis and Premium subscribers will also receive a 44,000-word report on the new additions to the database. Premium subscribers also receive access to five other databases: the Propel Multi-Site Database, produced in association with Virgate; the Propel Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database; the Who’s Who of UK Food and 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 are also being given exclusive access to the recording and slides to Propel Multi-Club Conferences. They 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.

 

Holiday allowances ruling ‘could cost businesses millions’: Employers must take account of overtime when calculating holiday allowances for staff, the country’s most senior judges have said in a ruling that could cost businesses millions. The ruling came in a Supreme Court decision that the Police Service of Northern Ireland must pay at least £30m in back pay to officers and civilian employees. The dispute hit the courts after a change in rules meant regular overtime worked by civil servants, and other additional payments accrued beyond basic salary, should be factored in when setting their holiday pay rate. Lawyers previously estimated a ruling in favour of the officers and staff could cost the Northern Ireland force as much as £40m and potentially pave the way for similar back payment claims worth hundreds of millions of pounds across the public and private sector. Employment specialists warned the ruling was likely to have implications for businesses across the UK. Jo Moseley, a lawyer at Irwin Mitchell, said while the ruling clarified an issue that had concerned many employers, the ultimate effect would be that they “won’t be able to use technical arguments to limit their liability for underpaid holiday pay claims”. Claims alleging an unlawful deduction of wages in the rest of the UK can be no more than two years old, but even with these restrictions, Moseley said, “some employers will still have to pay their staff a substantial amount to settle their cases”.

 

Third of hospitality workers motivated to change jobs by being offered employee well-being programmes and flexible working hours: A third of hospitality workers are motivated to change jobs by being offered employee well-being programmes and flexible working hours, according to new research. While better pay (47%) topped the list in labour management platform Deputy’s State of Shift Work report, well-being programmes and flexible working hours were second and third with 34% and 33% respectively. This was followed by health insurance (32%) and employee assistance programmes (29%). Almost half (47%) said their company had had difficulty hiring in the last 12 months, with 41% reporting that staffing shortfalls had made it harder for them to take time off. Meanwhile, 33% said they had been required to work more shifts and 39% believe their work/life balance had suffered. However, some felt the difficulty in recruiting had had a positive impact on their career, with 22% being given new responsibilities, 17% receiving a pay increase and 24% being promoted. When asked what would create a more positive working environment for them, hospitality workers were most interested in feeling valued and recognised (46%), employee well-being (43%) and a culture of trust (38%). Senior vice-president at Deputy, Jon Wilson, said: “If employers want to attract the best talent to join their teams, they need to have a thriving workplace and demonstrate they genuinely care about and invest in their people.”

 

NTIA appoints 30 night-time economy ambassadors to champion sector: The Night Time Industries Association (NTIA) has appointed 30 night-time economy ambassadors, representing major cities across the UK. The NTIA said the ambassadors, who are prominent business leaders and stakeholders within their respective communities, will act as champions for the night-time economy. It comes after the NTIA launched a campaign last year calling for the appointment of night-time economy advisors in every major city throughout the UK. The UK has appointed only two night-time economy advisors in the last three years. The 30 night-time economy ambassadors “will play a pivotal role in bridging the gap between the industry and policymakers, fostering collaboration and ensuring that our cities thrive not only during the day, but also after sunset”. NTIA chief executive Michael Kill said: “We believe the UK has been lagging behind in recognising the potential and significance of the night-time economy, compared with other world-leading countries. With the appointment of 30 night-time economy ambassadors in major cities across the UK, the NTIA aims to accelerate representation and advocacy for night-time economy businesses.”

 

More than three quarters of hospitality operators unhappy with their current tech stack: More than three quarters (67%) of hospitality operators are unhappy with their current tech stack, according to new research. The Hospitality Tech 2024: Bridging the efficiency and profitability gap report by sector technology company Vita Mojo, in collaboration with KAM, also showed 44% of operators don’t think they have the in-house skills to make the most out of their tech solutions, and 31% believe too much training is needed to use digital solutions properly. Meanwhile, 56% of operators said not having enough time was a significant barrier to achieving their business goals, but only 28% reported fixing inefficiencies was a focus area for the business. Two in three businesses said they are frustrated they are not making the most of the data they collect through their tech solutions, and nearly 40% said they find it hard to use data because it’s split across siloed platforms.

All Bar One, Budweiser Brewing Group UK & Ireland and Asahi scoop honours at Footprint Drinks Sustainability Awards: Mitchells & Butlers brand All Bar One, Budweiser Brewing Group UK & Ireland and Asahi were among the winners at the Footprint Drinks Sustainability Awards. All Bar One picked up the C&C Group on-trade operator of the year accolade, with Albion & East highly commended. Budweiser Brewing Group UK & Ireland came top in the social impact award for its “Walksafe” campaign while Asahi was victorious in the stakeholder engagement award for Meantime’s NOW IPA. The sustainable use of raw materials accolade went to Crumbs Brewing, with The Alumini Collection by Sustainaholics taking home the packaging innovation award. The waste prevention and management accolade was won by DrinkSachi, while Avallen Spirits picked up the C&C Group on-trade supplier of the year award. Meanwhile, Pernod Ricard’s Vanessa Wright won the special achievement award. Now in its fifth year, the Footprint Drinks Sustainability Awards is the barometer for sustainability and responsible business practice for the drinks industry and celebrates of businesses and individuals making a difference to sustainability in the on-trade drinks sector and its supply chain.

 

Job of the day: COREcruitment is working with a premium members’ club that is looking for a high-end general manager to drive the day-to-day operations and guest experience. A COREcruitment spokesperson said: “You will be responsible for ensuring the delivery of an exceptional experience for members. You need to always see the bigger picture while having an eagle-eye for every little detail at ground level. Based on site in Mayfair, you will ensure the team performs to the highest standards and maintains the premium standards on service, cleaning and maintenance.” The salary is up to £70,000 and the position is based in London. For more information, email david@corecruitment.com. 

 

Valiant Pub Company reaches 50-pub mark, firepower to triple that figure: Valiant Pub Company, which was co-founded by Hawthorn Leisure co-founders Gerry Carroll and Mark McGinty at the start of 2021, has reached the 50-site mark and told Propel it has the firepower to triple that number if “the right opportunity” came along. The business, which is backed by investment firm Njord Partners, is set to open The Cottage in St Mary Street, Cardiff, which will become its 50th site. The company has invested circa £1m in buying and restoring the pub, which was previously owned by Welsh brewer and retailer SA Brain and has been closed for two years. Valiant operates a further 24 pubs in Wales and 25 in England. In November 2021, Valiant reached an agreement to buy 17 pubs from SA Brain for an undisclosed sum through its then newly formed partnership with Njord Partners. Carroll told Propel that Valiant was taking a steady approach to its expansion plans, happy to pick off single site opportunities, but was ready to move on bigger portfolios if the right ones presented themselves. He said: “We are trading well and continue to find good single site opportunities to steadily grow the business. At the same time, we do have the firepower to look at portfolios of 50 to 100 sites – if they fit in with our criteria and continue to keep a close eye on the market.” Earlier this summer, Propel revealed Valiant co-founder and chief financial officer James Croft had left the business. Croft, former group strategy and retail director at Ei Group, teamed up with Carroll and McGinty to found Valiant. 

 

The Inn Collection Group appoints Joe Bernhoeft as new CFO: The Inn Collection Group has appointed Joe Bernhoeft as its new chief financial officer, Propel has learned. The company said Bernhoeft, a maths graduate from Edinburgh University, is a “hugely experienced finance professional” and joins the pub-with-rooms operator from the global fashion brand Barbour. He also brings to his new role a wealth of experience gained through positions with Amazon, Proctor & Gamble and Smurfit Kappa, and takes over the role from Paul Edwards, who, after heading up the group’s finance function during a period of unprecedented growth, is taking early retirement. Sean Donkin, group chief executive at The Inn Collection Group, said: “Joe is an incredibly experienced finance professional, having worked for some significant blue-chip organisations, including one of the north east’s most recognisable global brands. His skill set means he is well placed to head up our finance department as our estate continues to expand, as properties return to trading after significant investment and refurbishments. I’d like to this opportunity to thank Paul for his work and commitment and wish him the very best for his retirement.” The Inn Collection Group operates 36 sites across the north of England and North Wales, with its most recent acquisition being The Links Hotel in Seahouses, which it added to its portfolio in March.

 

Shake Shack to open in Oxford for 16th UK site: US better burger brand Shake Shack is to open a site in Oxford for its 16th UK site. Set over three floors, the outlet will open early next year in Cornmarket Street. The restaurant will offer dishes such as the signature ShackBurger, crinkle-cut fries and ShackMeister Ale. Since opening in New York in 2004, Shake Shack has expanded to more than 430 sites, including in excess of 140 international locations.

 

Sides to open first high street restaurant with Dalston launch: YouTube collective The Sidemen is to open its first high street site, in London’s Dalston. The Sides restaurant will launch on Thursday, 26 October. The 2,000 square-foot space comes after the business opened concessions in the capital at the Boxpark sites in Croydon and Wembley, as well as at Gravity Wandsworth and Market Place Harrow. The Dalston restaurant will have 40 covers and create 30 jobs. Sides said the opening “marks an exciting new chapter” after the use of dark kitchens showed “there was huge demand for Sides across the country”. Sides chief executive Robin Mehta said: “Opening the Dalston location will be a proud moment for all of us. As Sides continues to grow, we are really proud of all the effort that has gone into the space, the menu and the food itself.” 

 

The Genuine Dining Co reports current trading ‘very strong’ as new contract wins boost FY performance, Feng Sushi ceases trading: Catering company The Genuine Dining Co has said current trading is very strong. It comes as the business saw group sales more than double in the year to 29 September 2022, driven by the end of covid-related restrictions and the winning of 17 new contracts during the period. The business, which is backed by serial sector investor Luke Johnson, posted turnover of £25,996,115 (2021: £12,870,859) and said the rise in sales performance was primarily driven from its core Genuine Dining operation. The company said: “£2,185,123 of new business contributed to the excellent sales so the underlying like-for-like growth was 89%. The business won 17 new contracts in the financial year. Since the end of the year, the business has won a further 11 cost-plus contracts and exited four fixed subsidy contracts and one commercial contract. The directors are pleased to report equally positive sales momentum in Signature Dining, which grew 34% to £6,445,133, and also The Admirable Crichton Events, which despite being heavily hampered in the first quarter by ongoing covid related restrictions, returned sales of £1,791,112, substantially up on the prior year. However, in spite of the positive sales momentum, the year was not free from covid restrictions and government guidance. This particularly impacted the business and industry contracts in Genuine Dining, where office workers adopted work from home. This led to the group losing more than £300,000 across the six-week period impacted by omicron. In addition, in October 2022, the directors took the view to cease trading the non-core Feng Sushi operation, in order to focus on the core Genuine Dining operation. This led to a £522,000 one-off impairment charge in the accounts. The combination of the above led to a £639,076 loss attributed to the current year. The directors are pleased to report that trading has been very strong in the current financial period, with revenue, and more importantly profitability, tracking materially ahead of both the 2022 financial year and budget.” Genuine acquired the then eight-strong London-based Japanese sushi restaurant and delivery company Feng Sushi in April 2017.

 

Portobello Pub Co completes biggest investment with £2.5m spend on Worthing site, keen to do more pubs with rooms: Portobello Starboard, the acquisition platform backed by private equity firm Zetland Capital and trading as Portobello Pub Co, has completed its biggest investment to date on relaunching The Railway in Worthing, West Sussex. The Mark Crowther-chaired business acquired the then 18-bedroom Grand Victorian site, which included a nightclub, from Dominion Hospitality, an affiliate of Stellex Capital Management, last April. The site dates to 1898 and is located opposite Worthing’s central station. Portobello has invested more than £2.5m on refurbishing the site’s existing bedroom stock and adding 17 new rooms in the former nightclub area, taking the site to 35 bedrooms in total. Earlier this summer, the business added to its circa 25-strong estate with a new site in Catford, south east London, after acquiring the freehold of the Catford Bridge Tavern. On further expansion, Crowther said: “We’re seeing individual sites come through but not at the deal flow that we would like. We’re quite selective. We are not chasing numbers really, and Zetland, our backers, support us on that. We are very keen to grow and are well-funded, so let’s see what the next six to nine months bring. The Railway is our biggest investment by a long way to date in terms of an existing pub. We’ve also got Westow House in Crystal Palace, so this now gives us something approaching 60 bedrooms across the estate. We would certainly like to do more pubs with rooms if we can, it’s an area we do well at.”

 

Beavertown grows turnover past £70m: London brewer Beavertown grew its turnover during the nine months from 31 March to 31 December 2022, but its profit dropped. The shortened period saw turnover of £71,787,427, up from £65,102,526 in the year to 31 March 2022. Of this, £69,518,794 came from UK operations (year to 31 March 2022: £62,833,084) and £2,268,633 from Europe (year to 31 March 2022: £2,269,442). Its pre-tax profit stood at £6,642,892 versus £5,047,154 in the prior year as costs rose by more than £9m. In September 2022, Heineken UK assumed full ownership of Beavertown after purchasing the remaining shares. Heineken UK purchased a minority share in Beavertown in 2018 and invested significantly, developing a new state-of-the-art brewery in north London. Beavertown, which also operates the Corner Pin pub in Tottenham, has continued to be operated separately to Heineken UK.

 

Brothers behind La Brasseria Milanese to open third London site: Andrea and Alberto Fraquelli, who own La Brasseria Milanese in Marylebone and Brasseria Notting Hill, are to open their third London site. The brothers have acquired the former La Brasserie premises in South Kensington. Three years after its closure, the venue will reopen as Brasseria Brompton early next year. Spanning two floors and covering more than 8,000 square feet, customers will enter via a café and bar area that will feed into the main restaurant that will feature a wine tasting and display room. There will be two terraces and the downstairs will feature a space suitable for private dining of up to 40 guests. Dishes will include Fettuccine della Casa with porcini mushrooms and truffle cream; and Dover Sole alla Mugnaia, plated and deboned tableside. The brothers said they used to come to the Brompton Road venue with their parents when they were kids, and Alberto took his now wife Beatrice to the original La Brasserie on their first date. The Fraquelli brothers are third-generation restaurant owners, with their grandad, Lorenzo Fraquelli, founding London’s first Italian restaurant chain, Spaghetti House, in the 1950s. Their father, Stefano Fraquelli, went on to found the Metropolitan restaurant group, and one of the four restaurants he owned, Getti, went on to become the original La Brasseria.

 

Peel Hotels ‘exceeds own trading expectations’ to become debt free after making £9.5m from sale of two hotels, receives almost £2m in insurance claim: Peel Hotels said it has “exceed its own trading expectations” to become debt free in 2023 after making £9.5m from the sale of two hotels, while also receiving almost £2m in insurance claims. In its accounts for the year ending 22 January 2023, the business said: “We are clear in our strategy, which is to recover our Ebitda lost to covid, and thereafter sell down a proportion of our assets to become debt free in the future. We have exceeded our own trading expectations in the current financial year and became debt free in April 2023. Between 3 and 6 April 2023, the company sold the Norfolk Royal Hotel and The Midland Hotel for £9.5m. The profit before tax that these hotels generated during the year amounted to £381,945.” The group also said it is “looking to benefit from further covid related claims in the future”, and the hotel sales has left it with “a significant cash reserve”. It comes as the business reported a rise in Ebitda during the period to £2,157,320 from £1,275,204 in 2022. Its pre-tax profit increased to £1,077,505 from £289,260 in 2022, while turnover was up to £12,895,099 from £9,309,698. Revpar was up 95.1%, with occupancy rising by 68% and average room rate by 16.2%. Net debt stood at £5,809,393 (2022: £7,154,878), representing loans of £6,076,019 (2022: £7,525,569) less £266,626 (2022: £370,691) cash at bank and in hand. Gearing on shareholders’ funds was 52.2%, with interest coverage at 1.9 times. Capex of £411,903 was spent during the year (2022: £626,344). While no government grants were received compared with £838,1000 in 2022, insurance claims of £1,928,273 were received compared with £285,000 in 2022. The business now operates the Bull Hotel in Peterborough, the Caledonian Hotel in Newcastle, the Crown & Mitre in Carlisle and the George Hotel in Wallingford.

 

Travelodge enters into sublet agreement with Popeyes to open drive-thru restaurant in Northampton: Travelodge has entered into a sublet agreement with Popeyes Louisiana Chicken, the US fried chicken quick-service restaurant brand, which has seen a drive-thru restaurant open in Northampton. Popeyes UK is the latest retail brand to join the Travelodge mixed-scheme development partnership portfolio. Over the last three decades, Travelodge has partnered with a number of brands in a variety of mixed use developments alongside other complementary uses – such as retail, coffee shops and drive-thrus. Travelodge said it is keen to expand its development brand partnerships as part of its UK expansion programme, which includes looking for a further 300 hotel sites across the country. Of those, 120 of these locations currently do not have a Travelodge hotel and 50 do not currently have a branded budget hotel. The Popeyes drive-thru restaurant is located at the site of the first Travelodge hotel in Northampton, at Walter Tull Way in Upton. Steve Bennett, Travelodge chief property and development officer, said: “We have experience of working with major retailers and hospitality companies to help maximise development opportunities to support local growth, job creation and regeneration. As pioneers of the budget hotel sector, we are delighted to enter a sublet agreement with Popeyes and to offer the first hotel drive-thru restaurant at our Northampton Travelodge site.”

 

Exclusive Hotels and Venues parent sees strong membership growth and turnover boost but fall in profit and Ebitda: The Manor House Hotel (Castle Combe), the parent company of Exclusive Hotels and Venues, saw strong membership growth and a turnover boost in the year to 2 April 2023 but a fall in profit and Ebitda. Revenue grew from £52,228,840 in 2022 to £62,916,417 and is now above pre-pandemic levels, with the company reporting revenue of £52,568,698 in 2020, when the final month of trading was also impacted by covid. Its pre-tax profit dropped from £10,719,114 in 2022 to £7,192,734 (2020: £3,351,837) while Ebitda was down from £14.5m in 2022 to £11.7m. The company received £559 in government grants compared with £829,545 in 2022. Dividends of £450,000 were paid (2022: nil). Director Daniel Pecorellli, in his statement accompanying the accounts, said: “Membership has been extremely strong this year, with both golf and our wellness offering at our two spas showing very positive growth. Across all hotels, the meetings, incentives, conferences and exhibitions market was strong, with demand generated from companies wishing to physically get together after the pandemic. Wedding receptions were strong, helped by the continued covid backlog and our flexible approach to couples during the pandemic. We own the freehold of all seven of our hotel properties, giving us a strong balance sheet position. Total bank borrowings of £36m are well supported by the value of our assets.” Pecorellli said the company, which runs its own chefs’ academy, has 13 AA Rosettes between its hotels, and its latest restaurant to gain a Michelin star was The Pass at South Lodge, in October 2022. The group operates a portfolio of hotel, spa and golf facilities including Pennyhill Park, South Lodge, Lainston House, The Manor House Hotel, Royal Berkshire Hotel, Fanhams Hall Hotel and The Castle Inn. In February 2023, it added Anstey Hall in Warwickshire, its first site in the Midlands, and which “will be integrated into the brand in the summer of 2024”.

 

Liberation Group promotes Simon Griffiths to operations director: Brewer and retailer Liberation Group has appointed Simon Griffiths as operations director, responsible for overseeing operations for Butcombe Pubs & Inns in England and Liberation Pubs & Bars on the Channel Islands. The Jonathan Lawson-led company said: “Starting his career in hospitality in 1999, Simon worked his way up through the ranks of Loch Fyne and in 2012 moved to an operations manager role, where he was solely responsible for the group’s hotels, increasing occupancy and average daily rate to record levels. Simon moved into pubs in 2018, looking after sites in Kensington, Knightsbridge, Chelsea and Bayswater. He joined Premium & Urban Pubs south as an operations manager in 2020, responsible for pubs on the south coast, and began working for Liberation Group in December 2022. We are really pleased to have Simon’s operational and leadership expertise alongside his wealth of knowledge and experience of our industry, which will bring a huge amount of value to our senior management team.” Griffiths replaces Ashley Hamilton, who spent a year as operations director at Liberation. Propel revealed last month that Hamilton had joined Côte, the French brasserie chain backed by the Partners Group, as its new managing director.

 

Pret supports World Homeless Day with Club Pret donation: Pret A Manger is announcing a new donation stream for The Pret Foundation, to mark World Homeless Day and support vital work to tackle homelessness across the UK. Between Monday (9 October) and Sunday, 15 October, Pret will match the 20% savings from every Club Pret purchase and donate to The Pret Foundation. The donations will support Pret’s new pledge to expand The Pret Foundation’s Rising Stars programme, which provides training and employment opportunities for people experiencing or at risk of homelessness. The pledge will see Pret support a further 500 people facing homelessness into jobs at its UK shops over the next five years, marking a 40% expansion of the programme. Clare Clough, managing director, Pret A Manger UK & Ireland, said: “The Pret Foundation has been making a difference to the lives of people affected by homelessness for almost 30 years and we’re proud of its work. As our most loyal customers, we wanted to help Club Pret subscribers support a worthy cause this World Homeless Day by matching their 20% discount and donating to The Pret Foundation. We will continue to do everything we can as a business to help tackle this issue and give people new opportunities wherever we can.”

 

Birmingham McDonald’s franchisee doubles estate size, makes loss following cost pressures: Birmingham McDonald’s franchisee HFLC doubled the size of estate in the year ending 31 December 2022 with the acquisition of three restaurants and the opening of a further one previously purchased. The business, owned by former McDonald’s head office employee Dean Chapman, started the financial year with three restaurants in Birmingham city centre, having started franchising in 2015. “The business expanded towards the end of the financial year with the purchase of three additional McDonald’s restaurants and the opening of a fourth, taking the group size to seven restaurants,” Chapman said in his statement accompanying the accounts. “There were also a number of one-off costs that had a significant impact on the company’s financial performance.” The period saw turnover increase from £14,779,016 to £21,272,958 but a pre-tax profit of £1,461,258 in 2021 turned into a pre-tax loss of £103,021. Costs increased by more than £4m, while government grants of £30,000 were received compared with £736,634 in 2021. Dividends of £82,400 were paid (2021: £82,100). “In common with many other similar businesses and industries, the war in Ukraine has had a significant impact on raw product costs, fuel costs and utility costs, with labour costs also increasing considerably along with other overheads,” Chapman added. “We believe the trading environment in which the company operates will continue to be challenging but remain optimistic regarding future trading.”

 

Karma Kitchen launches fifth site: Karma Kitchen, the Crosstree Real Estate Partners-backed dark kitchen operator, has launched its latest site, a 20,000 square-foot location in Lower Sydenham, south east London. It is the fifth site for Karma Kitchen as it looks to expand its operations throughout London and the rest of the UK. Featuring 40 individual units, it will house food and beverage brands looking for delivery-only kitchens. Founded by Eccie and Gini Newton in 2018 due to a lack of kitchen space to grow their catering company, Karma Cans, Karma Kitchen aims to support the development of food businesses of all types and sizes. They said: “Opening new sites is always momentous, and Lower Sydenham keeps us on a really exciting trajectory. Providing accessible and affordable dark kitchen space is one thing, but we are taking it a step further, delivering flexibility and funding support, the things businesses really need to develop.” Karma Kitchen also has sites in Bermondsey, Wood Green, Hackney and London Fields.

 

Andrew Brownsword Hotels sees FY turnover recover to over £10m: Andrew Brownsword Hotels, the operator of 13 UK sites including four Adobe hotels and several manor houses and country inns, saw turnover recover to more than £10m in the year to 1 January 2023. The business posted turnover of £10,734,288 in the period, up from £7,234,974 the year before, but this was still down on the £13,807,243 in its last pre-covid year in 2019. In the year, it swung from a pre-tax loss of £587,823 in 2021 to a pre-tax profit of £668,762. The company said: “The war in Ukraine and the subsequent increase in the cost of utilities has impacted the economy significantly, slowing down customer demand. Suppliers increased cost of goods to offset increasing utility costs, while at the same time increasing the hotels own utility costs. The directors believe the group is well placed to compete in the market despite the challenging market conditions.” No dividends were paid.