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Mon 9th Oct 2023 - Propel Monday News Briefing |
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Story of the Day:Yard Sale Pizza reports record trading levels, secures next site, sees potential for in excess of 150 sites: Yard Sale Pizza, the restaurant and delivery business that has sector investor Paul Campbell as non-executive director, has reported year-to-date like-for-likes sales growth of over 15%, as the company said it saw potential to grow to in excess of 150 locations across the UK, Propel has learned. The Johnnie Tate-led business has secured its 11th site, in Hither Green, south east London, with an opening planned for next month. Propel understands a further site in the capital is in legals, with a timeline of additional openings planned for next year. It comes as the business has seen record trading levels for weekly Ebitda performance, and an average shop Ebitda margin of 27%. The company said that due to the success of its proven operating model, it views Yard Sale as having the potential to grow to in excess of 150 locations. Tate told Propel: “Following the appointment of Dow Schofield Watts London (DSW) earlier in the year, the initial business review phase has now been completed, and the business looks forward to pressing ahead with its plans to secure investment so that the immense opportunity that Yard Sale is facing can be harnessed.” Propel revealed in June that the business, which was co-founded by Tate and Nick Buckland in 2014, was working with DSW on reviewing its options as it looks at the next stage of its growth journey. Tate told Propel at the time that while the business believes there’s still a lot of opportunity inside London, “especially in neighbourhood areas”, it is also talking about outside of London as well.
Industry News:Sponsored message: LWC Drinks Brings Conor McGregor’s ‘Forged’ Irish Stout to UK On-Trade: LWC Drinks has signed an exclusive distribution partnership with ‘Forged’, the highly acclaimed new Irish stout brand created by UFC double champion Conor McGregor. Following on from the brand’s impressive success at McGregor's own establishment, The Black Forge Inn, located near his Dublin 12 residence, and its off-trade launch in August, under the new agreement, LWC Drinks will now bring Forged exclusively to the UK on-trade. A smooth and creamy dark roasted nitro stout, at 4.2% ABV, Forged offers up a meticulously crafted blend of the finest malts, barley and wheat that does not compromise on flavour. From its silky mouthfeel to its rich roasted aroma with notes of coffee and hints of chocolate, the result is an unparalleled level of depth and complexity with every sip. Lee Williams, beer and cider category manager for LWC Drinks, said: “We are incredibly excited to welcome Forged Irish Stout to LWC’s Signature Brands portfolio. LWC prides itself on customer service, and offering our customers new-to-market, exceptional quality products is a core part of this. Forged ticks all these boxes.” Forged draught is available now. Contact LWC Drinks for more information. If you have a sponsored message you would like to see featured in this newsletter position, email paul.charity@propelinfo.com.
David McDowall to speak at final Propel Multi-Club Conference of 2023, three free places per company for operators: David McDowall, chief executive of Stonegate Group, will be among the speakers at the final Propel Multi-Club Conference of 2023. More than 300 people have already booked for the conference, which 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”. McDowall will discuss evolving the UK’s biggest pub business during a cost-of-living crisis, simplifying its structure and providing it the right tools to continue to thrive. For the full speaker schedule, click here. Operators can book up to three free places per company by emailing kai.kirkman@propelinfo.com.
Next edition of Propel Turnover & Profits Blue Book shows 68% of companies in profit, up from 60% six months ago: The next Propel Turnover & Profits Blue Book, to be sent to Premium subscribers on Friday (13 October), shows 68% of the 763 largest sector companies are now in profit, up from 60% six months ago. The Blue Book shows 518 companies in profit and 244 reporting losses. The Blue Book is updated each month and ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Premium subscribers also receive access to five other databases: the Multi-Site Database, which is produced in association with Virgate; the New Openings Database; 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.
Lord urges Labour to commit to cutting VAT for hospitality and tourism: The Labour Party, which is ahead in the latest opinion polls, is being urged to give hospitality and tourism a big tax break. Sacha Lord, the night-time economy adviser for Greater Manchester, has urged the party to commit to cutting VAT for the sectors, reports The Daily Mail. The rate was slashed during the covid lockdowns but went back up to 20 per cent after the economy reopened. “The 12.5% VAT rate was a lifeline during the pandemic and must be reinstated,” Lord told the Labour Party conference in Liverpool. He added that this would allow the UK to compete with many European countries where the average rate is lower. “Ultimately, 12.5% of revenue for the Exchequer is better than 20% of nothing, which will increasingly be the result if businesses go under,” he said. It comes as last week’s rail strikes alone cost the industry £360m, according to trade body UKHospitality. The series of stoppages have also hit London’s economy to the tune of £571m in the past year, figures from the Centre for Economics and Business Research think-tank show.
Cinema chains see strong year-on-year growth, competitive socialising sales also increase: Summer smash hit films Barbie and Oppenheimer helped cinema chains see strong year-on-year growth, according to data specialists CACI’s Brand Dimension platform. Everyman saw a 71% increase against July 2022, while Curzon had an even more impressive 144% uplift. The three largest cinema brands – Cineworld, Vue and The Odeon – all benefited from year-on-year sales growth of above 30%, with only the latter two sitting below the industry average of 44%. Competitive socialising as a sector saw sales increase by 41% and transactions by 40%, with operators tracked by Brand Dimensions including the likes of Flight Club and Hollywood Bowl. Arabella Dalloz, head of leisure at CACI, said: “While having one of the wettest Julys on record isn’t what people wanted for staycations, it certainly helped make the case for spending leisure time and money indoors. It goes to show that the cinema sector can still churn out great results if they have blockbusters to work with, while the growth of competitive socialising continues at pace and is showing little sign of slowing down.”
Almost as many pubs closed in UK in first half of 2023 than whole of 2022: Almost as many pubs closed in the UK in the first half of 2023 than in the whole of 2022, a study has found. A total of 383 pubs closed in the period, almost matching the total for the whole of 2022, when 386 were lost, according to data from real estate analysts Altus Group. Wales lost the greatest number over the six months, with 52 shutting down, while London lost 46. However, employment in the sector has increased in the capital as the average pub has become larger, with the number of employees increasing in London (12%) compared to an average of across the country (3%). Alex Probyn, president of property tax at Altus Group, told the BBC: “With energy costs up 80% year-on-year in a low growth, high inflation and high interest rates environment, the last thing pubs need is an average business rates hike of £12,385 next year,” Probyn said. A government spokesperson said: “We recognise pubs are key drivers of local economies, but no national government can control the global factors pushing up the price of energy and other business costs. We are supporting hospitality businesses and those in the supply chain across the UK with 50% business rates relief, freezing alcohol duty rates on beer, cider, wine and spirits and reducing employer national insurance. This is in addition to the billions in grants and loans offered throughout the pandemic.”
Company News:Richards – park spend has record year in 2023, direct bookings for next year ahead by 14%: Steve Richards, chief executive of Parkdean Resorts, the UK’s largest holiday park operator, has told Propel that in terms of park spend, which is mainly food and beverage, the business has had a record year in 2023, and that the company expects 2024 to be really strong. Richards also said direct bookings for next year are currently 14% ahead of 2023. He said: “In 2022, the business reported revenues at £534.4m and flat year-on-year performance, which we see as a robust performance when compared with 2021 which benefited from the temporary post-covid VAT relief. On a more comparable basis, revenue was 18% ahead of 2019 (pre-covid), reflecting a stable UK staycation market. As a company, we were not immune from the challenge of rapidly increasing gas, electricity and food inflation, which affected profitability in 2022 and saw Ebitda delivered of £101.2m, which is broadly flat with pre-covid 2019 profits of £103.7m. As a business, we took a long-term view with regard to dealing with inflation in 2022, and while we continue to focus on delivering further cost efficiency, we were very cautious with regard to increasing our pricing. In terms of our more recent trading in 2023, we are pleased to note occupancy was at 98% throughout our peak trading months, and our satisfaction and loyalty scores show 82% of holidaymakers would recommend us, with over half of our guests being repeat bookers in 2023. This year, it has been very clear that once our guests have arrived on-park, they have enjoyed our various F&B outlets and children’s activities on offer, and accordingly our performance has been at record levels. We expect a solid end to the year and will end the season with all-time high customer metrics and strong employee engagement scores. Looking ahead into 2024, we remain cautious but note that the worst of the cost inflation is behind us, consumer confidence is gradually improving and, at time of writing, our forward 2024 holiday bookings are very strong.” The business refinanced its senior debt earlier this year and Richards said it was concentrating on investment into its core business and further digitalisation of the customer journey. Richards said: “We have the opportunity to increase footprint and the amount of accommodation units we have by 20% on land we already own. We bought about 100 acres this year across the UK in various blocks and will continue to do that. It makes a lot of sense for us to grow organically or footprint through land we can acquire or own ourselves, and that’s where our focus has been for the last few years.”
Tim Martin – surge pricing ‘not for JD Wetherspoon’, expects to open six new pubs in current financial year: JD Wetherspoon chairman Tim Martin has told Propel that surge pricing “is not for us” and the business expects to open six new pubs in the current financial year. Speaking following the company’s full-year results, where the business returned to profit, Martin also said the business had “pushed the boat out a bit too far” in some smaller towns, which has led to some of the ongoing closures. He added though some pubs shutting was down to leases expiring on some of its smaller sites. Last month, it was revealed Stonegate was charging drinkers more at busier times with “dynamic” surcharges. Asked if Wetherspoon would consider following suit, Martin said: “It’s not for us. It’s normally associated with Sky TV and sport, which isn’t our bag.” Martin believes the company is taking market share, particularly still from smaller competitors in what remains a fragmented industry. Average weekly sales per pub now stands at a record £53,000 – with the previous highest of £48,000 being in 2019 – and standards in the pubs “are the best they have been”. In terms of the drivers behind the sales momentum, which has seen like-for-likes sales in the first nine weeks of the current financial year up 17.3% on pre-pandemic levels, Martin said: “There’s been a real ale revival, craft beer upturn and cocktails doing well. Breakfast sales are improving and chicken dishes are in strong growth. Our Curry Club is performing very strongly. In the last few years we’ve changed to offer a club-style drink, with almost every meal all week as well.” Martin said costs are beginning to abate but energy has from this month increased from £15m to £20m per annum. He added while there may be further consolidation in the sector, Wetherspoon would “probably not’ play a part.
Swedish premium karaoke concept set for UK debut: Swedish premium karaoke concept Moyagi is set to make its overseas debut in London’s Fitzrovia, Propel has learned. It has completed on a site at 5 Cavendish Place, with an opening hoped for before the end of the year, and is looking more locations to expand over here. Founded in 2019 by Marcus Schuterman and Alexander Irinarchos, it has sites in Stockholm and Malmo, offering “premium entertainment with a focus on private room karaoke”. Guests can choose from a library of 85,000-plus songs and order food and drink directly to their room through their mobile phone. It offers three different sizes of karaoke room – small, medium and large. Taylor Gershon is Moyagi’s retained agent.
The Inn Collection Group had ‘very good summer’, site pipeline ‘decent’: Sean Donkin, chief executive of The Inn Collection, has told Propel that the business, which operates 36 sites across the north of England and North Wales, had a “very good summer on an underlying basis, with sites running at 15% ahead on a like-for-like basis through July and August”, and that the company’s openings pipeline “is decent”. In terms of current trading, Donkin said like-for-like sales rose to 25% in September. Donkin said: “We’re very happy with the existing estate coming back on-line post refurbishment, with another two sites to open before Christmas and two more in January. The openings pipeline is decent.” In the year to 1 January 2023, the company posted turnover of £36.4m (2022: £24.7m), gross profit of £30.7m at 84.52% (2022: £21.2m at 85.90%) and group Ebitda of £3.9m (2022: £3.7m) Net losses after tax were £8.4m against a loss of £12.4m the previous year. The group’s pre-tax loss stood at £9.77m (2022: £10.7m). As at 1 January 2023, the group was trading 635 rooms (2022: 502 rooms) available across 23 sites (2022: 19). Subsequent to the year end, the group signed a new bank facility, increasing the total amount available for developments and refurbishments. In addition, shareholder loans of £15m were made available to the group. The company said: “Significant investment continued in 2022 to support execution of the long-term expansion plan. Subsequent to the year end, the OakNorth facility was amended to give £69.5m of committed facilities, with repayment deferred until November 2024. With the support of OakNorth and the continued support of its investors, the group plans to continue to build its portfolio in the coming years. A continued pipeline of acquisition opportunities is developing, all at different stages of progress. The management team and investors have increasing confidence in the potential of the existing portfolio and potential acquisitions. Potential new build sites and further acquisitions are constantly being assessed and the group intends to add a further four to eight new sites per year.”
Receivers appointed to holiday parks owned by ‘Bob the Builder’ tycoon: An American real estate giant has appointed receivers to holiday parks owned British billionaire Robert Bull, amid claims that it has been left £300m out of pocket. Sun Communities, a $15b (£12b) real estate investment trust, has hired insolvency specialists from accountancy firm PwC to recoup money from Bull. City sources said Sun Communities is owed about £300m by Bull’s empire of caravan parks, which mainly trade under the RoyaleLife brand, reports The Times. Nicknamed “Bob the builder”, Bull was the second-highest new entry in the Sunday Times Rich List this year, building an estimated net worth of nearly £2bn in just seven years by converting holiday parks into retirement homes. Bull was plunged into a bankruptcy row over the summer following allegations of a trail of unpaid debts. A subsidiary of FTSE 250 investor Intermediate Capital Group appointed administrators to a number of firms owned by Bull. PwC now joins fellow accountancy firms James Cowper Kreston and Alvarez & Marsal, which are working on insolvencies that have been disputed by Bull. In June, Bull said parts of his empire of about 200 companies had been subject to “winding-up orders based on false claims and unfounded information”, and that these were either being disputed or had been dismissed. City sources said Bull had been in talks earlier this year with America’s Oaktree Capital Management to refinance about £1.5bn of loans. Christie & Co last week began marketing 29 residential caravan parks and properties on behalf of James Cowper Kreston and a further 30 holiday and residential parks are already on the market on behalf of Alvarez & Marsal. A spokesman for RoyaleLife said the relationship between Sun and RoyaleLife “is ongoing as a major refinancing project nears fruition.”
Black & White Hospitality looking to grow Marco Pierre White brands in UK with focus on Mr White’s: Black & White Hospitality is looking to grow its Marco Pierre White brands in UK with a focus on Mr White’s. The business owns the franchise rights to eight Marco Pierre White brands and is aiming to expand Mr White’s, for which it currently has three restaurants, into prominent high street locations. Franchise consultant Andy Hulbert has been brought in to work with chief executive Nick Taplin to work on the expansion plans, which will also look to drive the presence of the Marco Pierre White Steakhouse Bar & Grill and Marco’s New York Italian brands. Marco Pierre White Steakhouse Bar & Grill, its largest brand with 19 locations, is being marketed as “ideal for destination venues and hotels”, while Marco’s New York Italian, which currently has six sites, is “ideal for mid-range hotel brands looking to add some affordable luxury to the food and beverage offering”. Propel understands it will be targeting “large and interesting” venues in major cities as it aims to make Mr White’s “a real premium casual dining high street brand”. It comes as Marco Pierre White Restaurants introduces a steak and chips dinner for £14.95 deal across its UK estate. Jason Everett, executive head chef at the group, said: “No other restaurant group has an offer of such great value for money. Our restaurants are all about affordability where good quality food is served by a friendly team in an unpretentious environment.”
Innis & Gunn looking to ‘make events segment significant part of business’, shuts Dundee taproom as losses grow: Scottish brewer and retailer Innis & Gunn has said it is looking “make the events segment a significant part of our hospitality business”. It follows the success of the company’s presence at last year’s The Royal Edinburgh Military Tattoo, which it is now looking to build on. Founder Douglas Sharp, in his statement accompanying the accounts for the year to 31 December 2022, said: “Our events business is now a proven concept and delivers strong return on investment both in terms of margin and brand exposure. We continue to work closely with our partners at The Royal Edinburgh Military Tattoo. In 2022, we successfully operated bars at Edinburgh Castle throughout the event, a first at the Tattoo, presenting an opportunity in years to follow. We intend to pursue such opportunities in 2023, to build on this concept of running bars at events and make the events segment a significant part of our hospitality business.” Post year end, in June 2023, the business shut its taproom in Dundee, citing a “sharp rise” in costs at the South Tay Street venue. This left it with two taprooms each in Glasgow and Edinburgh, following the opening of the company’s West Nile Street taproom in Glasgow, in the former Bill’s site, in November 2022. “West Nile Street will be a flagship site for the brand, both in terms of size and location, and offers a high-volume outlet for our products in the centre of Scotland’s largest city,” Sharp said. It comes as the business reported a 7.7% increase in turnover for the period, from £21,114,000 in 2021 to £22,735,000. This was largely driven by the return to normal trading post covid, which “significantly impacted both our sales to the on trade and sales in our own brewery taprooms”. It said the new taproom contributed £145,000 of turnover and the expansion of its events programme £240,000. Of the 2022 turnover, £17,164,000 came from the UK (2021: £15,673,000), £4,241,000 from Europe (2021: £1,326,000) and £1,330,000 from the rest of the world (2021: £4,115,000). Further analysis shows £19,417,000 came from on-trade beer sales (2021: £19,314,000) while £3,318,000 came from operating its licensed facilities (2021: £1,800,000). The company’s pre-tax loss grew from £1,215,000 in 2021 to £2,370,000. It received £39,000 in government support compared to £566,000 in 2021.
Glasgow McDonald’s franchisee sees turnover pass £100m for first time, driven by delivery sales: McDonald’s franchisee AG Restaurants, which operates 26 branches in Glasgow and employs more than 2,600 people, saw its turnover pass £100m for the first time in the year ending 31 December 2022, driven by delivery sales. The business, started by former McDonald’s store manager Andy Gibson in 2002, reported turnover of £120,153,145 for the period, up more than 25% from £95,981,233 in 2022. “The growth in sales is predominantly due to the continued growth in delivery sales,” Gibson said in his statement accompanying the accounts. However, its pre-tax profit fell from £7,333,878 in 2021 to £1,879,963 as sales increased by more than £12m. It also received no government grants compared to £844,352 in 2022. “Despite a like for like turnover increase both from store and delivery sales profitability, although strong in the first half of 2022, has been impacted in the second half of the year by amongst other things the increase in VAT within the hospitality sector back to the standard rate of 20% from 1 April 2022, a volatile supply chain and rising costs base,” Gibson added. “The financial position of the company is healthy, with the balance sheet showing net assets of £11.44m, compared with £11.62m in 2021.” Dividends of £1,800,000 were paid (2021: £1,225,000).
Dubai ramen restaurant makes UK debut: Dubai ramen restaurant Kinoya Ramen has made its UK debut. Kinoya, a Japanese izakaya-style restaurant from self-taught chef Neha Mishra, has opened a 23-seater restaurant in Harrods, in London’s Knightsbridge, focused on ramen and izakaya dining cultures. Kinoya draws inspiration from Neha’s time spent running a supper club from her own home in Dubai. She opened the first Kinoya in 2021, in Dubai’s Onyx Tower, which has been awarded a Michelin Bib Gourmand two years in a row. Dishes include ramen soups such as shio paitan ramen with slow-cooked chicken broth and dashi, served with seared chicken and drizzled mayu; and tonkotsu ramen with 12 hour rich pork broth, bacon katsuobushi salt, anchovy oil and torched chasu. Drinks include sake, plum wines and Japanese beers. Mishra said: “My passion for Japanese food began while visiting the country and I’ve adored it ever since. I’m so excited to finally bring Kinoya to London, it’s a true reflection of everything I have been working on for the past few years.”
Darwin & Wallace appoints Mark Crowther as chairman, Steve Wilkins joins board: Darwin & Wallace, the eight-strong London-based, Imbiba-backed neighbourhood bar group, has appointed Mark Crowther as its new chairman. Crowther, who is currently chairman of Portobello Starboard and Midlands pub company Pub People, joined the Mel Marriott-led Darwin & Wallace as a non-executive director in August 2021. He is joined on the group’s board by Steve Wilkins, the owner and founder of Little Gems Country Dining, and co-founder of the likes of bar and restaurant concept Lewis & Clarke, and independent pub business Smith & Jones. Darwin & Wallace said: “It is widely acknowledged that this has been one of the most challenging periods our sector has ever faced, characterised variously by labour shortages, strikes, fuel inflation and subdued consumer confidence, all of which have placed the business under considerable stress. However, against this backdrop, Patrick has lent his experience and support in guiding not only changes to the governance procedures, but crucially, in the rationalisation of the operating business, refinancing of the company’s debt facilities and the partial repayment of the loan notes. Like Mark, Patrick joined the board in August 2021 in advance of the possible AIM listing as the company needed a chairman with listed company experience, which he has. However, now that a listing is no longer an option for the company because of the change in stock market sentiment towards flotations, particularly towards companies of our size and in our sector, and as we revert to a limited company status, Patrick has decided that his experience is no longer so relevant. This decision will enable him to spend more time on his other business interests. At the same time, we welcome both Simon Wheeler of Imbiba, who has rejoined, and Steve Wilkins as non-executive directors. Steve has successfully developed a number of ‘build and exit’ businesses over the last 25 years and has extensive experience as an NED in the hospitality sector.”
London’s largest KFC franchisee actively seeking franchise locations to open new stores as turnover rises but profits drop: FT Foods, part of Tahir Group, the largest KFC operator in London, has said it is actively seeking franchise locations to open new stores as turnover rose but profits dropped in the year ending 21 December 2022. Founder Fazan Tahir said: “The directors continue to actively search for new franchise locations to facilitate expansion and open new stores. This is while investing in existing stores to maintain turnover levels.” It comes as FT Foods increased its turnover during the period from £20,867,259 in 2021 to £22,735,604. But its pre-tax profit fell from £634,863 to £63,931 and Ebitda dropped from £2,235,906 to £1,187,101. Costs rose by almost £2m, while no government grants were received compared to £69,125 in 2021. Total shareholders’ funds at 21 December 2022 were £1,095,724 (2021: £1,087,468) while cash balance at the end of the period totalled £711,252 (2021: £2,235,906). No dividends were paid (2021: nil). FT Foods became London’s biggest KFC operator when it acquired seven restaurants in 2018. Its estate at the year end stood at 41 KFCs, and it added a 42nd in the summer of 2023, in Solihull. It also operates two German Doner Kebabs and three Starbucks cafes across London and Birmingham.
Team behind Biryani Kebab Chai opens new Coupette site: The owners of the Biryani Kebab Chai (BKC) have opened a new site for their Coupette cocktail bar concept. Propel revealed in August that they had secured new sites for both concepts, alongside each other at 8-9 Moor Street in London’s Soho. The 35-cover Atelier Coupette has now opened at 9 Moor Street, offering “smaller serve drinks, regular test menus and French-inspired small plates” alongside “interactive engagement and experimentation, where guests are participants, rather than mere spectators”. Dishes include halibut with broccoli purée, asparagus, broccoli junk, caviar, white wine sauce and lobster oil; and red mullet with kumquat purée, tenderstem broccoli and Jerusalem artichoke. It is a second site for the Coupette brand, with the first having launched in Bethnal Green in 2017. It follows the recent openings of a second BKC at 8 Moor Street, following its debut site, which launched at 7 Edgware Road last year. Subjahit Mitra is behind both concepts, initially partnered by Chris Moore, former bartender at the Beaufort Bar at The Savoy, for Coupette, and by executive chef Arsh Thakur for BKC.
Mikhail Hotel & Leisure Group refinances as turnover and Ebitda rise but profits fall: Merseyside operator Mikhail Hotel & Leisure Group refinanced in the year ending 31 December 2022 as turnover and Ebitda rose but profits fell. The group refinanced four loans with Lloyds Bank – two worth £4,955,768 (2021: £2,827,974) and repayable over 12 years. A further loan of £43,887 (2021: £50,000) relating to a government bounce back loan is repayable over six years, and a final loan amounting to £273,333 is repayable over five. It comes as the group reported a rise in turnover from £8,493,480 in 2021 to £11,438,800 during the period. The majority of this, £9,473,644 (2021: £7,149,138) came from the operation of the group’s 12 hotels and public houses. Underlying Ebitda also rose from £1,786,992 to £2,292,115 but its pre-tax profit fell from £1,722,689 to £839,270. The company received £60,041 in government grants compared to £761,921 in 2021. Dividends of £52,924 were paid (2021: £103,416). In June 2022, the Andrew Mikhail-led business reopened the Cains Brewery in Liverpool, which had been shut for nine years, following a multimillion-pound renovation. But post year end, in March 2023, production of the beer was halted due to a dispute over a royalties clause with the brand’s owner, Terracotta Asset Management.
Le Cordon Bleu-trained chefs open relocated London Stock restaurant: Le Cordon Bleu-trained chefs Assem Abdel Hady and Andres Bernal have reopened their London Stock restaurant following its relocation. The duo – who have worked at as worked at two Michelin-starred restaurants such as Umu and Dinner by Heston, and one-starred restaurants Nobu, Pollen Street and Hind’s Head – opened the original London Stock in the Ram Quarter development in Wandsworth in January 2020. They have now moved the fine dining concept to 6 Sackville Street in Mayfair. Alongside its seasonal eight-course tasting menu (£85), the restaurant offers an à la carte three-course lunch (£40), a three-course pre-theatre menu (£50) and four-course set menu (£60) in the evening. The kitchen is run by head chef Sebastian Rast, previously of Above at HIDE. A wine and drinks list includes a wine flight for the signature eight-course tasting menu. The main restaurant features an open kitchen, while downstairs is a private dining room for 12 with its own bar, in the old wine cellar. Marc Rogers, of MKR Property, acted on behalf of London Stock in the acquisition of the Mayfair location and is marketing the existing Ram Quarter location on an assignment basis.
Mogford Hotels FY turnover tops £10m as trading boosted by leisure market: Mogford Hotels, which operates the Old Bank Hotel and Quod restaurant in Oxford and is owned by Jeremy Mogford, has reported turnover for the year ended 31 December 2022 topped £10m, on the back of strong leisure market demand. The business posted turnover of £10,683,531 for 2022 (2021: £7,292,755), with a pre-tax profit of £1,236,020 (2021: £874,628). The company stated: “The business continued to recover from the effects of the pandemic with no more closures. The leisure market was strong with occupancy on the weekends being at historic highs. However, the business market was still muted which held back early week occupancy. ADR was strong with the hotel able to mitigate the effects of inflation. We were not able to match this but were able to mitigate its effects with good cost control. Staffing remains a major challenge, with a double-digit increase in wages and a lack of available staff. Quad restaurant had a good year with a budget beating result, with margins well controlled, but staff costs and availability are the major challenges. Overall, a good result for the company, exceeding budget and maintaining margins.”
Staffordshire better burger brand set to open third site: Staffordshire better burger brand Timmy’s is set to open its third site. The business, which already has branches in Stafford and Cannock, is preparing to launch in Cheadle, with more sites planned in the future. It will take on the unit previously occupied by Moorlands Fast Food in Moorlands Walk, just off the High Street. Timmys’ smashed burgers include two or three patties sandwiched between a brioche bun with a choice of toppings such as mac ‘n’ cheese, cheetos, onion rings and bacon. It also offers kebabs, pizzas and loaded fries alongside doughnuts, cookie dough, milkshakes and cheesecakes.
Liverpool brewery Lone Lane goes into administration again: Liverpool brewery Love Lane has collapsed into administration again almost 18 months after being rescued by a former Iceland boss. The business first entered administration in June last year, owing more than £1.5m to its creditors. At the time, the business was saved after former Iceland boss Nick Canning invested a further £300,000 in the company, then increased his shareholding in the business after it underwent a pre-pack administration deal. However, Love Lane has entered administration again, with Paul Stanley and Jason Greenhalgh of Begbies Traynor appointed to oversee the process. Based in Liverpool’s Baltic Triangle, Love Lane is also a gin distillery, bar and restaurant as well as an events space. A spokesperson for Love Lane said: “This situation is made more frustrating after a considerable investment in the company in early 2023. Sadly, the business struggled to get back to the heights of pre-covid sales. There are several conversations in play with potential purchasers.” The bar at 62-64 Bridgewater Street will continue trading. Stanley said the brewey has been mothballed while a buyer is sought. He added: “As the majors have introduced their own corporate versions of craft beer onto pumps, the smaller brewers are finding it even tougher to compete, and we have seen a huge rise in the number of microbrewery businesses seeking financial help. We are already speaking with potential purchasers and are working proactively to make a deal happen.”
New fine dining restaurant opens in Essex: A new fine dining restaurant has opened in Ongar. Tanishq, which aims to “bring the essence of Mayfair to Essex”, has launched in Toot Hill following a £500,000 investment. The menu features dishes such as king scallop moilee, Goan hara chicken and vadouvan monkfish. Co-owner Imran Ahmed, who has had a career of curating dining experiences in some of London’s most prestigious restaurants, said: “We pride ourselves on the exceptional quality of food that we deliver, which complements the impeccable aesthetics and atmosphere at our venue.”
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