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Morning Briefing for pub, restaurant and food wervice operators

Wed 25th Oct 2023 - Propel Wednesday News Briefing

Story of the Day:

Gusto Italian CEO – we're starting to see the light at the end of the tunnel on costs: Matt Snell, chief executive of Gusto Italian, has told Propel the Palatine-backed business is “starting to now see the light at the end of the tunnel” when it comes to costs, and it will start thinking about securing new sites over the next 12 months. Talking about trading in the year to the end of September, Snell said: “Despite forces outside our control affecting trading, broadly our sales were pretty good. Profitability wise it was extremely difficult. Pre-energy crisis our utility percentage was about 3%. It was as high as 12% in the year just finished in September. It effectively made it almost impossible for casual-dining businesses to make money. We're starting to now see the light at the end of the tunnel. So, we're now seeing our utilities costs down at probably 5%, so much more normalised. Our food costs have normalised, as have our labour costs. So, from a conversion point of view, we are feeling pretty good – fingers crossed. In our new financial year that we are four weeks in, total sales are up more than 16%, like-for-likes are up 6%. Because we've got that conversion under control. It would have been our intention to do a new site this year/early next year, but because of the cost-of-living crisis, we've decided to hang fire with that, and make sure that our business is as healthy as possible. At some point next year, we'll start to take advantage of the opportunities that I think will start becoming available. We'll be thinking about new sites over the next 12 months. Cash hasn't been an issue in our business. It has been a question of profitability. And that’s something that I strongly wanted to protect and see out the last 12 months. We feel much more optimistic now as we look forward. Our customer scores are best in class through Feed it Back. We are running with our net promoter score at 85 currently and all of our KPIs say the business is in rude health. We don’t borrow money to open new sites. There's no third-party debt incumbent on the business at all.” Snell spoke after the 14-strong business reported turnover for the year to 22 September 2022 was “significantly ahead” of the prior year at £24.2m (2021: £12.4m). Ebitda before exceptionals was £0.9m (2021: £0.6m). Net assets were £1.4m and cash was £3.3m. Gusto Italian features in the Propel Turnover & Profits Blue Book. Its turnover of £24.2m is the 307th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. 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 kai.kirkman@propelinfo.com to upgrade your subscription.

Industry News:

Sponsored message – Dojo Pocket can help you streamline your payment processes: Dojo Pocket, a phone-sized handheld card machine, allows staff to take orders and payments simultaneously, makes bill splitting “seamless” and “empowers bars and restaurants to prioritise the efficiency and hospitality guests value while dining out”. A spokesperson said: “Despite the cost-of-living crisis, a third of consumers said they value memorable experiences over saving money when going to a bar or restaurant. In fact, around a quarter (25%) now seek venues where they know they will have a great experience and speedy hospitality. Payments are an element of hospitality that can be overlooked when considering guests' overall experience. The right technology can help restaurants and bars deliver memorable experiences. Dojo is committed to helping merchants thrive in the experience economy and believes innovative tech such as Dojo Pocket helps hospitality venues turn tables faster. Dojo also offers evolved processes such as next-day payments to merchants. Getting your money quicker gives you peace of mind and makes it easier to have cash to hand for early morning deliveries. Dojo is proud to empower hospitality businesses of all sizes to seize the opportunities the experience economy brings through innovative tech and streamlined processes.” For more information, click here. If you have a sponsored message you would like to see featured in this newsletter position, email paul.charity@propelinfo.com.

Premium subscribers to receive two databases and access to videos from Propel Talent and Training Conference 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 (27 October), at midday. It will include 46 new multi-site companies. Before that, the updated UK Food and Beverage Franchisee Database will be sent to Premium subscribers at midday today (Wednesday, 25 September). Ten new companies have been added, taking the total to 110 businesses featured. Premium subscribers are also to receive access to all the videos from this month’s Propel Talent and Training Conference. They will be sent 13 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 Franchisor 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 kai.kirkman@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.

Home Grown Hotels – apprenticeships can be the fundamental cornerstones of how we can rebuild the sector: Steve Rockey, group people director at Home Grown Hotels, the parent company of Pig Hotels, has argued apprenticeships can be the “fundamental cornerstones” of how we can rebuild the sector’s workforce. Rockey told this month’s Propel Talent & Training Conference the evolution of Home Grown’s apprenticeship journey started six years ago. He said: “We had an acute chef shortage at The Pig at Combe. The upshot of that was our chairman Robin Hutson, who has the ability to cut to the quick of what the problem is and how to sort it out, highlighted that chef de parties are essentially as rare as rocking horse poo. So, we needed to create our own programme in order to dig ourselves out of our own issue. We couldn’t do this without speaking to our head chefs, who are the people that ultimately are in charge of looking after training and developing people whose first job is in our industry. They had to be onboard and know that this will help in the long term. The downside is, in the short term, nothing is going to fundamentally change but over a period of time it absolutely will. As we are now, nearly 10% of our business are apprentices. Up to 70% of our apprentices are now joining us externally, which is a massive shift from where we started, when most of our apprentices were internal, who were desperate for qualifications for the future. We have a 90% completion rate. We have an 82% retention rate post-graduation and about 55% of graduates gain a distinction. And we are very lucky that in one particular hotel we've got a waitlist for the number of apprentices who want to join to join the programme.” Rockey said that one of the key parts for the business was focusing on things it can do and not on what it can’t when it comes to training. He added: “Among the knitting of what you do on a daily basis are levels and levels of interesting information that people in your business want to learn, will totally geek out on and will help fundamentally inform what they end up doing in their careers within hospitality. It’s that, which keeps it interesting, particularly if you're an apprentice. If you keep it interesting, people will stay. And it's on us to keep it interesting.” Rockey’s presentation will be among those from the Propel Talent & Training Conference sent to Premium subscribers at 9am on Friday (27 October). 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 kai.kirkman@propelinfo.com to upgrade your subscription. 

Real Living Wage to rise 10%: The voluntary Real Living Wage is to increase by 10% to reflect the ongoing cost-of-living crisis for workers, it has been announced. More than 460,000 people working for 14,000 employers who pay the rate will receive a wage rise. The Living Wage Foundation said its rates will increase to £12 an hour outside London – a rise of £1.10 – and to £13.15 an hour in the capital – a £1.20 increase. The foundation said the rise, which comes into immediate effect, reflects “persistently high costs” for low-paid workers. The voluntary rate, which applies to everyone over the age of 18, compares with the statutory National Living Wage for over-23s of £10.42 an hour. A full-time worker earning the new Real Living Wage will earn £3,081 a year more than someone on the current government minimum, and an additional £5,323 in London, according to the foundation. Its research found despite easing inflation, the cost-of-living crisis is far from over for low-paid workers, with 50% worse off than a year ago. More than two in five low-paid workers said they regularly use a food bank and almost as many report falling behind on household bills, said the foundation. Living Wage Foundation director Katherine Chapman said: “As inflation eases, we cannot forget that low-paid workers remain at the sharp end of the cost-of-living crisis. Low-paid workers continue to struggle with stubbornly high prices because they spend a larger share of their budget on food and energy. These new rates are a lifeline for the 460,000 workers who will get a pay rise.”

NTIA calls to political parties to adopt its recommendations for night-time economy: The Night Time Industries Association (NTIA) has launched “Darkest Before the Dawn”, its 2024 night-time economy manifesto, and called on political parties to adopt its recommendations. Written by Philip Kolvin KC in collaboration with key stakeholders, the NTIA said the manifesto is the first of its kind in the UK, and signifies a milestone in its “advocacy for a thriving and secure night-time economy throughout the UK”. Containing 44 recommendations to fortify the night-time industry within towns, cities and regions across the UK, the manifesto urges policymakers at national and local level to adopt cohesive strategies to protect and foster the night-time economy, for the benefit of everyone. The manifesto requires policymakers to measure up to the systemic challenges faced by independent businesses in the night-time industry and the wider cultural landscape, from rising business rates, high levels of VAT, crippling energy costs, commodity prices, labour shortages and reduction in consumer spending power. Kolvin said: “Pubs, nightclubs, and music venues are the bedrock of popular culture, particularly for young people, but for many years have been closing at an unsustainable rate. The financial challenges they now face often appear overwhelming. Darkness before the Dawn advocates a paradigm shift, requiring policymakers to view the night-time economy as a social good to be celebrated and protected, and not just regulated. It shows how a strategic, systematic, and creative approach to governance of the sector will help to drive its revival for the economic and cultural benefit of the nation.” Michael Kill, chief executive of the NTIA, added: “The manifesto represents a pivotal moment in the history of our industry. It showcases the vital role our night-time businesses can play in shaping both national and local night-time economy strategy. This work is of paramount importance, and its implementation will not only revitalise our night-time businesses but also enrich the cultural and economic fabric of our nation.” Sacha Lord, night-time economy advisor for Greater Manchester, said the manifesto should be treated “as the bible for our industry”. 

London day travelcards saved following revenue deal: Day travelcards in the capital will be maintained after a deal was agreed between Transport for London (TfL) and train operators, mayor Sadiq Khan has said. The cards offer unlimited travel to passengers on public transport in zones 1-6 of London, including tube, bus, rail, and London Overground services. TfL had said it was underfunded by the travelcard agreement at an annual cost of about £40m. Khan said the deal ensures TfL will get a “fairer share of ticket revenue”. Last year, 12 million day travelcards were sold, double the number in covid-hit 2020, but down from 27 million in 2018. The daily travelcards are currently priced at £15.20, but the price will rise “slightly”. Norman Baker, director of external affairs at Campaign for Better Transport said: “This is a great decision for sustainable transport and the people who use it, and a happy day for our capital and its businesses.”

Commercial rent collection nears pre-pandemic levels: Commercial property landlords’ rental collection, which dropped sharply during the pandemic, is almost back to where it was before the first lockdown. The Times reported landlords received 77% of the rent owed to them on the day it was due last month, according to data from Remit Consulting, which tracked 125,000 leases and £2bn in rent demands. A week after the due date, 88% of rent demanded had been paid. In 2019, before the pandemic, landlords received just over 90% of rent owed within seven days. At the height of the lockdowns, barely a third of rents were being collected on time amid a moratorium that protected corporate renters, many of which had to shut for weeks, from being evicted if they did not pay their rent. The scheme was criticised by landlords, who felt that even well-capitalised businesses were using the legislation as a “licence to not pay rent”. Although rent collection has been improving, even at the June quarter day this summer only 65% of all rents were paid on time. “The rent collection rate at the start of the current quarter is the most robust since 2019,” Elijah Lewis, head of research at Remit Consulting, said. Last month, 77% of retailers and offices paid their rents on time. Meanwhile, 74% of leisure tenants had paid by the due date. Industrial tenants were the worst payers, with 73% of their rents paid on time. 

New app launches to help employees demand and do more on climate at work: A free app that helps employees demand more and do more on climate at work has launched. Hurd presents workers an opportunity to anonymously rate their company’s efforts to tackle the climate crisis, share success stories from their workplace, and use the platform’s e-learning resources to help them do more in their job. For every organisation, Hurd provides a climate empowerment score, which measures how ready an organisation's employees feel they are to act on climate. The score is calculated by frequently asking users three quick but different questions. The questions assess their understanding of (“head”), their connection to (“heart”) and their ability to act on (“hands”) climate at work. According to a recent study by Kite Insights, 83% of employees said they want to act on climate at work, and 70% said the ability to act on climate at work is important to their motivation and well-being. Sophie Lambin, founder and chief executive of Hurd, said: “With Hurd, we want to focus on people as the ultimate force behind the potential to unlock positive tipping points. People and their willingness and ability to act at work is still untapped. Let’s give people the voice, the tools and the network to contribute to shifting the whole system faster and in a way that is inclusive.”

Company News:

Wimpy owner reports increase in UK first-half revenue: South African-based restaurant group Famous Brands, the owner of the Wimpy brand, has reported an increase in half-year revenue for its UK business. It said operating conditions in the UK, where it operates 65 Wimpy sites, continue to be difficult due to economic pressures, inflation and low consumer confidence. Revenue in the UK for the period increased 18% to R83m (2022: R71m), while operating profit improved to R10m (2022: loss of R20m). The operating profit margin in the UK improved to 12% (2022: minus 28.1%). Group-wide, the owner of the Steers and Debonairs brands saw earnings per share for the six months ending 31 August 2023 decrease 7.4% year on year to 199 cents and profit fall 20.7% to R219.7m (£9.48m), despite its revenue increasing 10.1% to R3.9bn. The company said the weaker rand and supply chain challenges meant it was spending more on input costs such as imports after a poor potato harvest. The business said: “Despite this background, consumers are more resilient than expected and still spend time at restaurants. Here, restaurants offer affordable indulgent moments as a reprieve from their daily challenges. However, with tighter budgets, consumers do not eat out as lavishly as before. Consumers are enticed through value deals, discounts, smaller meals with lower price points, competitions, menu innovation and loyalty programmes. Shopping centres have recovered from their pandemic slump, with foot counts returning. Hospital foot counts are up, which supports restaurants in those locations. We are bullish about our prospects in the Africa and Middle East region. Here, we will cautiously enter three new markets – Ivory Coast, Egypt and the Democratic Republic of Congo – with the Debonairs Pizza and Steers brands.” The group has 2,522 restaurants in South Africa, 311 in the rest of Africa and the Middle East, and 65 in the UK. Since the end of the reporting period, it said that an agreement was reached to close eight restaurants in Oman.

Vapiano appoints Steve Collard as UK operations director, plans to open ‘substantial number of restaurants’: Vapiano, which is owned by the Mario C Bauer-led consortium Love & Food Restaurant Holdings, has appointed Steve Collard as operations director for its UK operations, Propel has learned. Collard replaces managing director Craig Goslin, who leaves the business after five years for “new career challenges”. The company said Collard – who was previously with Nando's, Honest Burgers and Gourmet Burger Kitchen – brings a “wealth of experience and a solid operational focus to the successful, fresh pasta business”, which currently comprises five sites – four in London and one in Manchester. Collard said: “Vapiano is a successful global business making exceptional fresh pasta cooked exactly as the guest wants it, plus excellent pizza and great salads, in a brilliantly buzzing restaurant, there's nowhere else quite like it.” Reporting to Vapiano UK president Vernon Lord (of East Coast Concepts), Collard will oversee the next phase of Vapiano growth in the UK. Plans are to open a “substantial number of restaurants” over the next five years with support coming from the McWin Fund and the Handa family of investors. Vapiano's estate typically consists of sites at 9,000 square foot with 300-350 covers. The company said its new format Vapiano at Paddington, which opened 11 months ago with 160 covers, is trading “significantly ahead of expectations”. The announcement comes ahead of World Pasta Day today (Wednesday, 25 October), which see's Vapiano offering every single pasta dish on the menu for £8. On announcement, the company said bookings had to be turned off after two hours with all remaining spaces available for walk-ins.

Red Oak Taverns acquires 17 pubs from St Austell Brewery: Red Oak Taverns has acquired 17 pubs from St Austell Brewery’s leased and tenanted estate for an undisclosed sum. The deal includes sites across Cornwall, Devon and Somerset. Red Oak currently owns 212 pubs, primarily leased and tenanted, which are concentrated in the Midlands, south, north west and south west of England. The independent business has already made several acquisitions in 2023, from companies including Everards, McMullen’s and Marston’s. Red Oak Taverns chief executive Mark Grunnell, who co-founded the business in 2011 with executive chairman, Aaron Brown, said: “We are delighted St Austell Brewery, a fellow independent business with a rich history of running great pubs, chose to work with us in selling these assets. We’re committed to the continued growth of our pub portfolio and this package of acquisitions will further strengthen Red Oak’s presence in the south west region. We’re looking forward to working in partnership with all 17 of our new licensees in this exciting new chapter, providing ongoing support to help their businesses thrive.” Kevin Georgel, chief executive of St Austell Brewery, added: “Unlocking the full potential of our pub estate is a priority for us, as we continue to develop our business for the future. As part of our commitment to ongoing investment and growth, we are continuing to proactively manage our estate, aligned to our refreshed and focused strategy. This means ensuring all our pubs have a strong alignment with our long-term plans and continue to fit our focus in terms of market and consumer positioning. As a business, which is committed to supporting its tenanted partners and investing in its pubs, we are confident Red Oak is the best possible custodian for these pubs and will ensure their ongoing success.” St Austell was advised by Sapient Corporate Finance and Michelmores with Freeths acting for Red Oak. The 17 pubs are: Bettle & Chisel, Delebole; White Horse, Launceston; Radjel Inn, Pendeen; Wellington, St Just; New Inn, Park Bottom; Dolphin, Exeter; Western, St Austell; Four Lords, Par; Kings, Lostwithiel; White Hart, Modbury; Old Smithy, Ivybridge; Dolphin, Grampound; Cat & Fiddle, Exeter; Holly Tree, Exmouth; Racehorse, Taunton; Windmill Inn, Williton; and Rolle Quay Inn, Barnstaple.

BrewDog launches half price weekend offering for 18 to 25-year-olds: Scottish brewer and retailer BrewDog has launched an Under-25 Club – a weekend-focused initiative that offers 50% discounts for customers between the ages of 18-25 across everything from drinks to hotel stays. Taking place UK-wide across all BrewDog bars (only food applicable in the promotion for Scotland bars), the business is offering the discount from 4pm to close every Sunday. On top of food and drink in its bars, BrewDog hotels are also part of the promotion – offering the same discount of 50% for a Sunday night stay in any of the Manchester, Edinburgh or Aberdeen branches. The company said the Under-25 Club could provide hotel guests with a saving of up to £145 (calculation on hotels worked out by taking the 50% saving from the most expensive stay BrewDog hotels have left available in 2023). BrewDog co-founder James Watt said: “The weekend is all about having fun, so it's exciting to offer our BrewDog spaces as the perfect hangout spot for under-25s at a huge discount. Hopefully, knowing you've bagged yourself a big saving will help ease the thought of going back to work or university on Monday. Whether you're looking to pop in for something to eat, have a few drinks, or maybe even a night's stay – our BrewDog spots will be pretty hard to beat when it comes to a super affordable day out.”

Cooks Coffee appoints administrators to Triple Two business: Cooks Coffee has appointed administrators to its Triple Two coffee franchise business. It comes after the company announced last month it was planning to place the 11-strong business, comprising Triple Two Holdings and its subsidiaries, into an insolvency process. Cooks Coffee stated: “The company has appointed RSM UK as administrators to its Triple Two coffee franchise business. The company's reiterates that its larger Esquires business continues to perform in line with management's expectations and is making a positive contribution to the group. The Esquires business will not be affected by the Triple Two administration process.” At the time of the announcement of the insolvency process, Cooks Coffee stated: “Triple Two was growing rapidly before the covid-19 pandemic and had shown continuing momentum in FY22. However, in recent times, this momentum has not been able to be maintained and the business has been adversely impacted by the current market environment.” Earlier this month, Esquires opened in Kettering for its 55th UK site and said it plans to pass the 60-site mark by the spring of 2024. Earlier this year, Esquires said it plans to double its UK estate over the next three years.

Dabangg Hospitality to begin roll out of Casa Casa Peri concept, builds Ikaro pipeline: Dabangg Hospitality, the company behind the Estabulo Rodizio brand, is to begin the roll out of its Portuguese restaurant concept Casa Casa Peri, with an opening in Beverley, East Yorkshire. The business, which launched the concept in Wakefield, will open its second Casa Casa Peri site in the Flemingate scheme in Beverley. The scheme also houses a site under the group’s core Estabulo Rodizio brand. Zac Issak, owner of Dabangg, said: “We’re thrilled to be bringing our most popular Portuguese flavours to Beverley. Through our sister restaurant, Estabulo, we’ve been at the heart of Flemingate’s food scene for many years now and have seen the centre expand its offering of high-quality venues. We’re sure visitors to Casa Peri Peri will love our dishes.” Earlier this month, the business launched its new premium fusion concept, Ikaro, in Manchester, and lined up a second site in Leeds. The company launched Ikaro – which offers a Japanese, Portuguese and Brazilian fusion of food concept – on the ex-Panacea nightclub site in Manchester’s John Dalton Street. The hybrid restaurant dining concept is based on the group’s already established restaurant chain, which has different styles of eateries across the north of England. Ikaro will be similar to the group’s Sakku Samba but will be more “upmarket fine dining complemented with entertainment and live performers”. Dabangg has secured the former East 59th restaurant, previously operated by D&D London, on the rooftop of Victoria Gate in Leeds for an opening before the end of the year. Propel understands Dabangg plans to roll out Ikaro to Edinburgh, London and Dubai, with openings in each planned for 2024. The new sites take Dabangg’s portfolio to 21 restaurants, including ten under the Estabulo brand and two Sakku Samba sites. It also operates a charitable coffee shop operation, Caffe Noor.

Arc Inspirations appoints Lee Woolley as new people and culture director: Arc Inspirations, the premium bar operator, has appointed Lee Woolley as its new people and culture director, Propel has learned. Woolley, who will join the Martin Wolstencroft-led business in January, brings a wealth of knowledge with more than 30 years of experience within the hospitality industry. Having started his career as a qualified chef, Woolley quickly progressed to general manager at Scottish & Newcastle Retail, before transitioning to HR. He has held a number of senior HR and people roles at leading hospitality businesses such as Stonegate, Mitchells & Butlers, and Spirit Group. Most recently, he served as director of learning and organisation development at Stonegate Group, a position he held for more than 13 years. Arc said Woolley’s appointment will support its commitment to “driving a people-first culture, and with training and development at the heart of its business”. Wolstencroft said: “Lee embodies the passion and values we have here at Arc and brings with him a unique wealth of knowledge and experience that will be invaluable as we take our business into the next phase of its growth and development. Our success is down to the incredible hard work and dedication of our people and we are delighted to have Lee involved to drive this further in the months ahead.” Woolley said: “I’m delighted to be joining the wonderful Arc team and to build on what’s already a great culture.” Arc Inspirations operates 19 premium bars across the Midlands and the north of England, under the brands of Banyan Bar & Kitchen, Box and Manahatta. The business recently launched its largest Box venue to date, in Brindleyplace, Birmingham. The company is planning to open at least four more sites in a “transformational” next 12 months including a Box in Nottingham, and a Manahatta in Newcastle next month, with its ambition to open 50 sites by 2030.

Big Mamma to make debut in Italy: Big Mamma Group, which recently secured new backing from McWin, is to open its first restaurant in Italy, in Milan. The operator behind London restaurants including Gloria, Ave Mario, Circolo Popolare and Jacuzzi will open a site under its Gloria concept in Milan, this December. The company – which currently operates 23 restaurants across France, England, Germany and Spain ¬– said opening a restaurant in Milan is the “most significant stage of a magnificent European journey that has shaped our identity”. It said: “Ten years since the beginning of this adventure, and after some extraordinary experiences such as obtaining the B-Corp label in 2018 and opening restaurants all over Europe, the dream of landing in the capital of fashion and design, the Gran Milano, has finally come true. Italy has always been at the centre of our story, the place where everything began. Opening a restaurant in Milan is the most significant stage of a magnificent European journey that has shaped our identity. Today, our mission begins: to take up the great challenge of sharing the Big Mamma experience with the Milanese, serving a menu full of authentic Italian recipes with our own French and European twist, in a special and beautiful restaurant. And our biggest ambition now has a name (one oh-so lucky that it helped our dreams come true in London): Gloria.” Last month, Propel revealed McWin, the investment firm of food industry entrepreneurs Henry McGovern and Steven Winegar which backs companies such as Vapiano and Gail’s, had acquired a majority stake in the Big Mamma Group. The long-term investment made out of the McWin Restaurant Fund saw Big Mamma valued at €270m. The investment will help the business expand further in its existing territories and into new ones, including the Middle East and the US.

Wingers continues expansion with Leamington Spa opening: Buttermilk fried chicken restaurant concept Wingers has continued its UK expansion, with an opening in Leamington under new franchisee, experienced quick service restaurant professional Ravi Uppal. The concept, which now operates seven UK sites, also has openings in Shrewsbury, Nottingham and Birmingham International train station in its pipeline. On the Leamington Spa opening, Uppal said: "My family have been involved in the convenience food sector for many years. A good friend, and another Wingers' franchisee, introduced us to the concept and it quickly became clear that Wingers has a brilliant concept and the fresh fried, buttermilk chicken coated in a range of secret spices is a real hit with customers. It wasn't long before we'd decided to invest in a franchise. Finding the Leamington Spa site, which is in a popular food court in the heart of the city centre, and right next to some established names, means our opening at the weekend was incredibly busy! It's a particularly good destination for evening and weekend shoppers. Our bright, cosy Wingers restaurant staffed by our friendly team has suddenly taken off!"

Travelodge identifies 20 markets in Spain for new hotels as it opens sixth site in country: Travelodge has identified 20 markets in Spain for hotel openings after opening its sixth site in the country, in Coslada, Madrid. Travelodge signed a 20-year lease on the former NH Villa De Coslada, Madrid, and has since refurbished and rebranded the 78-room hotel to become the Travelodge Madrid Coslada Aeropuerto, which features an on-site restaurant, bar and car park. Travelodge has invested €1m in the hotel, which is the group’s third in Madrid. Travelodge also operates two hotels in Barcelona and one in Valencia. Travelodge has worked with Christie & Co, which has prepared a strategic expansion report on the development opportunities offered by the Spanish hotel market. The report showed it remains an under-represented market for budget accommodation, with economy and midscale hotel rooms representing 33% of total room supply in comparison with mature markets including France (circa 59%), the UK (circa 41%) and the USA (circa 44%). Meanwhile, just 6% of Spain’s hotel rooms are in the branded economy and midscale segment. The study identified the potential for an additional 15,000 branded rooms in the economy and midscale segment of the Spanish hotel market within the next five years, through a combination of new developments and conversions of existing hotels. Target locations for Travelodge include Alicante, Bilbao, Cádiz, Malaga and Seville. The Spanish expansion plans come just weeks after Travelodge announced record-breaking results for the six months to 30 June 2023, reporting a revenue and profit performance significantly ahead of 2022 levels, with adjusted Ebitda of £104.5m. Travelodge operates 598 hotels and more than 46,000 rooms across the UK, Ireland and Spain. 

AG Barr acquires Rio soft drinks brand from Hall & Woodhouse for £12.3m: AG Barr has acquired the Rio soft drinks brand through the purchase of Rio Tropical from brewer and pub operator Hall & Woodhouse, for £12.3m. Tropical fruit brand Rio has been marketed, sold and distributed on an exclusive licence basis by AG Barr’s recently acquired Boost Drinks division since 2021. It said the acquisition is entirely funded from the group's strong net cash position. AG Barr said: “With a brand building business model, and following the Boost acquisition, we have moved quickly to secure the long-term position of the Rio brand within our wider portfolio. While an important contributor to the previously announced ongoing margin rebuild programme, the transaction is not expected to have a material impact on the group’s profits for the current financial year ending 28 January 2024.” Roger White, chief executive of AG Barr, said: “As brand builders we are delighted to acquire the Rio brand and secure its long-term position in our wider portfolio. This allows us to realise the benefits of full brand ownership and support Rio’s continued growth. This acquisition is a further positive indication of our strategic ambitions.”

The Wolseley Hospitality Group to launched new The Wolseley site next month: The Wolseley Hospitality Group will launch its new The Wolseley in the City site on Wednesday, 8 November. The company said: “The new opening will align with the 20th anniversary of the widely admired The Wolseley in London's Piccadilly, and is due to capture the elegant interiors and impeccable standards of its predecessor, while presented as a younger sister to the original. The restaurant, located in a breath-taking building a stone's throw from Monument Square, will be much larger than its Piccadilly namesake, housing two sweeping bar spaces and two private dining rooms. Overseen by head chef, Edward Ross, the menus at The Wolseley City will retain an 'all-day' offering intrinsic to The Wolseley's DNA, designed for all appetites and occasions. Dishes will include Welsh rarebit, steak tartare, and treacle cured bacon chops with a double fried egg, served alongside classics such as crustacea and Plateau de Fruits de Mer.”

Taiwanese dessert concept Meet Fresh to open in Leeds for third site, two more outlets launching next month: Taiwanese dessert concept Meet Fresh is to open its third site, in Leeds – with two more outlets set to open next month. Meet Fresh is opening in the Merrion Centre in the Arena Quarter having agreed a deal with owner Town Centre Securities. The venue will offer Meet Fresh’s range of Taro ball desserts, Grass Jelly, shaved ice and a variety of drinks. Meet Fresh operates sites in Glasgow and London, with new locations planned for Birmingham and Edinburgh in November.

Detroit Pizza to open in Islington for second London site: Detroit Pizza is expanding its presence in London with an opening in Islington. The restaurant at the rear of 137 Upper Street will mark Detroit Pizza's second venue in the capital, after its outlet at Spitalfields Market. The concept said its style of pizza is characterised by “its thick, focaccia-like crust, which is crispy on the outside and tender on the inside”. The unit is a character building with industrial-era features “that reflects the architecture back in our US home town”. Detroit Pizza was represented by Cafe Ventures in the acquisition, which is spearheading Detroit Pizza’s expansion plans in London.

Bang Bang Oriental Foodhall signs up with Uber Eats: Bang Bang Oriental Foodhall, London's newest and largest Asian food court based in Colindale, has signed up with Uber Eats. The venue boasts the widest range of specialist Asian restaurants in the UK, with more than 25 different restaurants offering an array of food from across the continent. Vincey Lam, development manager at Bang Bang Oriental Foodhall, said: “Uber Eats has a strong and ever-growing customer base, by analysing and understanding customers' preferences and ordering patterns, providing us with an excellent opportunity to introduce our food offerings to a broader audience as well as retaining loyal and repeat customers.” Matthew Price, regional general manager of Uber Eats in UK & Ireland and northern Europe, said: “Asian cuisine continues to be one of the biggest growth areas on the Uber Eats app. We're pleased to say Bang Bang Oriental Foodhall has partnered with us on an exclusive basis. It has quickly become known as a hub of the Asian community in north west London and the place to order the very best Asian food in town.”

Wagamama to open restaurant in Stockton: Wagamama, The Restaurant Group-owned brand, is to open a site at Teesside Park in Stockton. The venue, which will have 126 internal covers and 26 external, will launch in December. It will be Wagamama’s 159th UK restaurant and create 70 jobs. Alongside its traditional offer, the site will have the new Korean-inspired menu, including Wagamama's first hot pots. Milly Pearson, regional marketing manager for the north, said the business was looking forward to opening its third restaurant in the area, joining Newcastle city centre and the Metrocentre.

Zambrero confirms Birmingham opening plans: Zambrero, Australia’s largest Mexican quick-service franchise, which received £143m in equity financing to open more restaurants in Britain and Ireland earlier this year, has confirmed it will make its debut in the Midlands, on Wednesday, 15 November. As revealed by Propel last month, Zambrero will open a site at 5 Colmore Row, Birmingham. It has signed a ten-year lease with landlord, Hortons’ Estate, on the unit, which is part of The Grand in Birmingham. Earlier this summer, Zambrero secured its first site in the north west, in Manchester. The business secured the site formerly occupied by Greggs in Piccadilly Gardens, on a new 15-year lease. Earlier this year, the company opened in Reading, on the former William Hill site in Queen Victoria Street. It also operates four sites in London and a site in Chelmsford. Zambrero was founded in Canberra in 2005 by Sam Prince, a Scottish-born doctor, with the idea of using the profits to support humanitarian causes. The company donates a meal to the developing world for each one bought through its Plate 4 Plate initiative. Zambrero has grown to become the biggest Mexican restaurant group in Australia and the eighth largest globally, with 250 sites in Australia, New Zealand, Britain, Ireland and the US. The brand, which is led in the UK by chief executive Emily Teh, opened its debut UK site in Kentish Town in 2021. Teh said: “We’re thrilled to be opening in such a vibrant area in the heart of Birmingham and look forward to being a part of the local community.”

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