Wendy’s CEO – UK franchisees have increased their development agreements, highlighting confidence in the brand: Todd Penegor, president and chief executive of Wendy’s, the third-largest quick service restaurant chain in the US, has said its three existing UK franchisees has increased their development agreements, “highlighting their confidence in the long-term trajectory of the brand”. Speaking after the business reported that its international business had delivered like-for-like sales growth of 7.8% in the third quarter to 1 October 2023, Penegor also said that the brand’s UK business had recently added a new franchisee to the market. The company has so far signed up Blank Table, Square Burger and JRK Restaurants as its franchisees in the UK. The brand currently operates 31 sites in the UK through a mixture of restaurants (21 sites) and delivery kitchens. Last month, it opened its third site with Blank Table, and third drive-thru site here, in Peterborough. It has further openings lined up in Guildford and Cambridge. Penegor said: “Our digital business accelerated in the third quarter, with global sales mix reaching 13% and total sales growing 30% year-over-year. Internationally, we continue to see strong adoption of digital channels, leading to a sales mix of more than 18%. We continue to significantly grow our Canadian digital business, and we now hold the number two position in digital traffic share across the quick service restaurant burger segment in that market. We also achieved another quarter of outstanding digital mix in the UK, now reaching more than 19%. Our US digital sales mix grew to more than 12%, with growth versus the prior quarter, driven by a meaningful uptick in our loyalty programme. Our international business delivered like-for-like sales growth of 7.8% and achieved an incredible tenth consecutive quarter of double-digit like-for-like sales growth on a two-year basis, reaching 18.6%. We continue to see strong results across our key international growth markets, with many achieving double-digit one-year like-for-like sales growth during the quarter. The ongoing success of our international segment is driven by strong execution and momentum across our global growth pillars.” Last month, Propel reported Wendy’s saw turnover for its UK business increase to £21,266,567 in the year to 31 December 2022 (2021: £6,864,280) on the back of new site openings.

 

Alix Partners – conditions in the UK stabilising to a point where private equity might return to deal-making: Conditions in the UK are stabilising to a point where private equity might return to deal-making, Graeme Smith, managing director at financial advisory firm AlixPartners has argued. He said with the hiatus on activity in the UK leisure and hospitality market finally showing signs of coming to an end, investment firms should capitalise on the increased interest from Apollo Capital Management’s bid to acquire The Restaurant Group. “As has been the case over the past few years, there is a sense that forward-thinking investment firms, with a long-term view, could be (or should be) taking advantage and acquiring some of the best businesses in the sector that previously would be out of reach,” Smith said, writing exclusively in today’s Propel Premium. “If we are now coming to the stage where conditions are stabilising to a point where private equity – following what has happened in the US market – returns to the dealmaking trail, this can only be positive for the industry, and for patient investors who would like to head for the exit door.” Smith will share more of his thoughts in today’s Premium Opinion, which will be sent to Premium subscribers at 5pm. 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 to receive new edition of The New Openings Database today: Premium subscribers will receive the new edition of The New Openings Database today (Friday, 3 November), at midday. The database will show the details of 107 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 7,600-word report on the new additions to the database. It includes Gordon Ramsay Restaurants, which is planning to open two restaurants spread across four floors of the 22 Bishopsgate building in the City of London. Hong Kong-based Aqua Restaurant Group, the David Yeo-founded business that operates a portfolio of restaurants across the globe, has opened its new Italian seafood restaurant, in London’s Chelsea. Plus, Ottolenghi is set to open a new restaurant and deli in London’s Hampstead. For the first time, Propel group editor Mark Wingett has chosen the best videos from the Propel conferences in 2023, picking out a selection of talks and interviews that resonated with delegates from across the breadth of the hospitality sector. The 12 videos will be made available to Propel’s Premium subscribers at 9am on Friday, 24 November. 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 kai.kirkman@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 Mark Wingett.

 

Luke Johnson – hospitality careers offer positive aspects other industries just can’t: Careers in hospitality may have historically been looked down on by those of a snobbish persuasion – but it offers so many positive aspects other industries just can’t, sector investor Luke Johnson has argued. He said these include a huge diversity in business owners, leadership opportunities for young people and delivering the best moments of many people’s lives. It is also less likely to be replaced by artificial intelligence than those careers traditionally seen as more acceptable by middle-class parents. “You might say that hospitality is seen as a Cinderella career, but after 40 years in the game, I would argue there are many positive aspects to this industry of ours,” said Johnson, writing exclusively in this week’s Propel Premium. “Almost everyone loves to eat and drink out – and I believe they always will. By contrast, artificial intelligence may well replace many thousands of highly paid lawyers, accountants and bankers. I’m confident that in 30 years, the hospitality industry will still offer plentiful career opportunities at every level. But those posh professions? They may just have priced themselves out of work.” Johnson will share more of his thoughts in today’s Premium Opinion, which will be sent to Premium subscribers at 5pm.

 

Business leaders demand scrapping of tourist tax: Business leaders gathered this week to protest against a “tourist tax” that they say is deterring customers. More than 50 protesters, including hotelier Sir Rocco Forte, held banners in Savile Row in London declaring “Scrap the tourist tax”, “Tourist tax costs the UK £10.7bn in lost GDP” and “Tourist tax deters two million tourists”, reports The Times. In 2020, the government removed a tax break that allowed international shoppers to reclaim 20% VAT on purchases. A total of 400 business leaders have signed a letter calling for a rethink. Forte said the government “doesn’t seem to be receiving the message” and added: “It’s a mixture of the treasury’s short-sightedness and this government being basically anti-business. It’s the most anti-business government we’ve had since the 1970s.” The treasury said “VAT-free shopping does not directly benefit Brits” and argued the scheme could cost British taxpayers around £2bn a year. It added: “Fewer than one in ten non-EU visitors used the previous scheme, showing it’s not a significant attraction for tourists.”

 

Industry unites for programme of autumn school visits to encourage uptake in hospitality careers: Senior industry leaders have united in a programme of autumn school visits designed to encourage more young people to consider a career in hospitality. Louise Gallant, head of publican and management recruitment at Punch Pubs; and Amanda Scott, head of talent, learning, diversity and inclusion at Compass Group; will be among those joining UKHospitality chief executive Kate Nicholls and Springboard chief executive Chris Gamm on the visits. They mark the start of a big recruitment drive by the Choose Hospitality Pledge. Co-founded by Nestlé Professional, Choose Hospitality and Springboard CareerScope, the Choose Hospitality Pledge is seeking motivated ambassadors to help educate secondary students about the industry’s wide range of entry-level roles and training opportunities. Nicholls said: “As the third largest private sector employer in the UK, it’s essential that we shine a light on the fantastic career opportunities that hospitality can provide, and education plays a key role in attracting the next generation of British talent. While only 10% of jobs in hospitality are currently recognised by the UK government as skilled, our industry is filled with highly trained and motivated professionals, and more roles need to be recognised to ensure we continue to attract young workers to the hugely rewarding careers on offer and bring in the skills that we need.” The Choose Hospitality Pledge gives school leavers the opportunity to experience how dynamic, rewarding and exciting the sector is as a career and aims to reshape perceptions of hospitality.

 

Exclusive – parent company of Middletons Steakhouse & Grill plans to undergo CVA: Gastro Pubs, the parent company of the Middletons Steakhouse & Grill chain of steakhouses, is planning to undergo a company voluntary arrangement (CVA), Propel has learned. The Stephen Hutton-led company was founded in 2011 in Middleton, Norfolk, and currently operates steakhouses in Kings Lynn, Norwich, Milton Keynes, Colchester, Leicester, Peterborough and Chelmsford. This summer, Propel revealed Middletons was working with advisors at Interpath on its options, which were thought to include a possible sale of the business. Earlier this year, it closed its site in Leamington Spa, just over a year after its launch. The opening marked a debut in the West Midlands for the business when it opened on the former Gusto Italian site in Regent Court last February, after a £500,000 investment. More recently, Middletons closed its site in Cambridge’s Bridge Street. In common with many UK hospitality businesses, the company said it was impacted enormously by the covid-19 pandemic and subsequent national lockdowns. In order to trade through that period, it relied upon government support measures. In more recent times, rising costs and the impact of the high interest rates on the cost of borrowing has put pressure on the company’s cash flow. It said: “The company is now taking decisive action to safeguard its future by undertaking a financial restructuring programme which, alongside a number of arrangements reached consensually with creditors, seeks to compromise legacy liabilities principally accrued as a result of the covid pandemic. If approved, the proposals will see all seven restaurants continue to operate, with no redundancies being necessary.” Tim Bateson and Chris Pole, of Interpath Advisory, will act as the nominees of the CVA. Bateson said: “These continue to be difficult times for businesses across the hospitality sector who are grappling with the twin challenges of high interest rates and cost inflation, coupled with fragile consumer confidence. These CVA proposals provide Middletons with the additional flexibility it requires to navigate this environment, as well as securing new investment for the future.” The company’s creditors will have until Monday, 20 November to vote on the proposals. Gastro Pubs reported turnover for the year to 1 May 2022 of £11,120,310 (2021: £4,394,409), and a pre-tax loss of £659,678 (2021: loss of £38,740).

 

Pitcher – part of the brand diversification of Revolution is working with retailers and hoteliers: Rob Pitcher, chief executive of Revolution Bars Group, the operator of the Revolution, Revolución de Cuba and Peach Pubs brands, has said that part of the diversification of the Revolution brand is working with retailers and hoteliers to tap into the leisure and tourist guest. He said Saturdays are still the busiest day of the week for the business but Fridays “are a problem”. He said: “Saturdays are still trading very well. Fridays are a problem with people working from home. The Revolution brand particularly was a fantastic place to go for a post-work office party on a Friday afternoon. That then led to people staying out way beyond what they were anticipating. Now, if they are not in the city centre, that is not a market that is available to us. So, part of that brand diversification is working with retailers and hoteliers and saying if there isn’t a workforce guest in the city on the Friday afternoon, who are using the cities? We are pivoting the brand to look at tourists, shoppers etc and are therefore working with retailers, such as doing pop-up bars in the clothing retailers that play to this market. We are also getting into the hotels that have been used for leisure stays on a Friday and getting flyers put on pillows and things to drive footfall from those hotels. We are definitely having to pivot. Pricing wise, we’ve always had a price for the weekend, price for the time we’ve got the footfall and discount back early week. And that’s still what we do.” Pitcher said the record pre-booking figures the business was seeing for Christmas was “testament to the fact that corporates are looking to come out and spend with us and make sure that teams have a brilliant time over Christmas”. He reiterated that the group’s focus was paying down debt and operating prudently over the next 12-18 months while the cost-of-living crisis “hopefully abates”.

 

Ex-Papa John’s UK MD Gavin Lilley joins Subway: Gavin Lilley, formerly of Papa John’s, has joined Subway, as its new director of operations and learning and development, Propel has learned. Lilley spent 17 years at Papa John’s, including a stint as its interim UK managing director, and most recently as vice-president, international operations. He was also previously vice-president, international operational excellence at Papa John’s International, and joined as a regional training manager for London in 2006. Based in London, Lilley’s new role at Subway will have international scope with the global sandwich chain. This summer, Subway announced it had agreed a deal, believed to be valued at circa $9.5bn (£7.52bn), to be sold to US-based firm Roark Capital, which already owns restaurant brands such as Arby’s and Buffalo Wild Wings. Subway currently has nearly 37,000 outlets in more than 100 countries, including more than 2,300 restaurants in the UK and Ireland.

 

Starbucks reports record fourth quarter, UK like-for-like sales above historical averages: Starbucks has reported record fourth quarter revenue following strong sales across North America and robust outlet growth internationally. The company reported group revenue growth of 11% to reach $9.4bn in the three months to 1 October 2023, 2% higher than the third quarter. Record fourth quarter sales pushed Starbucks’ full-year revenues to $36bn, an 11% year-on-year increase. Its international like-for-like sales increased 5% in the quarter, driven by a 6% increase in comparable transactions and 1% decline in average transaction value. The brand opened 816 net new stores in its fourth quarter to reach 38,038 outlets – 52% of which company-operated – across 86 markets globally. Laxman Narasimhan, chief executive of Starbucks said: “Our like-for-like sales in our company-operated markets for both the UK and Japan remained well above historical averages in fiscal year 2023, with growth attributed to higher profitability and higher productivity store formats, as well as elevated digital and partner experiences.” On the brand’s overall performance, he said: “We finished our fourth quarter and full fiscal year strong, delivering on the higher end of our full-year guidance. Our reinvention is moving ahead of schedule, fuelling revenue growth, efficiency and margin expansion. As we enter the current year, in the face of macro uncertainty, we remain confident in the momentum throughout our business and headroom globally.” In September, the business said it was making “good progress” in its expansion plans to open 100 new sites in the UK over the current year. The chain said it has also “maintained strong, double-digit growth” in the UK in recent months despite pressure on consumer spending due to the rising cost of living. It came as Starbucks opened its latest drive-thru site in Oldham, Greater Manchester, amid the continued growth of its drive-thru business, which now represents a quarter of all UK shops. The opening was also the group’s 20,000th opening outside North America. 

 

Zia Lucia eyes Reading for regional debut site: London pizzeria concept Zia Lucia is planning an opening in Reading for its debut regional site, Propel has learned. The nine-strong business, which opened in West Hampstead earlier this summer, is understood to be planning to open in Reading St Mary’s Butts, on a site previously home to ASK Italian. In May, co-founder Gianluca D’Angelo told Propel that the business was aiming to open its first regional site within the next 12 months, adding that “it’s a big area we will grow in over the next 12-18 months”. In June, the business said it was aiming to open up to ten sites by 2026, with an initial focus on the south, east and south west of England. Zia Lucia instructed Savills to assist with its expansion outside of London and into the rest of the UK. It is seeking sites of between 1,000 and 1,500 square feet in high streets locations for its next openings. Claudio Vescovo, Zia Lucia co-founder, said at the time: “London is where our business was born, but after winning the UK National Pizza Award it was clear to us that there is a demand for our four types of pizza bases nationwide. We look forward to bringing our black pizza to new cities!”

 

Coffi Lab hits £5m turnover mark, pipeline ‘developing beautifully’: Coffi Lab, the dog-friendly coffee shop concept which was launched in 2021 by Coffee#1 founder James Shapland, has reached the £5m turnover mark, Propel has learned. Coffi Lab will open its ninth site and second in England, in Somerset, this weekend. The company – which already operates a site in Marlborough, Wiltshire – will open at the former McColls site in Portishead’s High Street, tomorrow (Saturday, 4 November). Shapland told Propel that the group’s “pipeline is developing beautifully”. He said: “We’re in active discussions on eight units presently”. In May, Shapland told Propel the growth opportunity for the concept “is significant” and that its site pipeline is strong, with a long-term target of 50 Coffi Labs over the next five years. Earlier this week, Coffi Lab appointed Rob Price, formerly of retailer Jojo Maman Bebe, as its new finance director. 

 

Pub People adds to freehold estate,with 13th acquisition in the past 12 months: Midlands pub company Pub People, which is backed by that investment manager Downing, has added to its freehold estate with an acquisition near Nuneaton, which is the 13th site it has acquired in the past 12 months. The company said: “The Miners Arms near Nuneaton is an excellent community pub maintained by long term independent free traders to the highest standards. This brings the Pub People freehold estate to 34.” In September, Propel revealed that Pub People had raised its expansion target to 75 sites as backers Downing opened a new bond for investment. Propel revealed exclusively in September 2022 that investment manager Downing had acquired Pub People and merged it with its Autumn Pubs business for a combined estate of 49 sites. Pub People said in April that it was aiming to build its estate to 60 locations but is now looking beyond that target. “We are pleased to announce that a new pub bond supporting the Pub People is now open for investment,” Downing said. “The bond will allow investors to earn a fixed interest rate of between 6% and 7.25% per annum for a period of up to two years. The pub bond provides an opportunity to support the growth of the Pub People, an experienced and proven operator of community public houses with more than 30 freehold pubs across the East Midlands. The group intends to acquire, refurbish and operate several freehold pubs over the next two years, with ambitions to grow the size of its existing estate of freehold pubs to more than 75, and with several further acquisitions in the pipeline.”

 

Fatto a Mano to open second London site next month: Brighton pizza concept Fatto a Mano, which made its bricks and mortar debut in London with the opening of Fatto Pizza & Beer in King’s Cross last year, is to open a second site in the capital, in Covent Garden. Opening in early December, the new Fatto a Mano at 30 St Martins Lane will be the company’s first full-menu pizzeria in London, having grown from its home city last year with the opening of Fatto Pizza & Beer in King’s Cross, pairing (a shorter) pizza focused menu with craft beer from small independent brewers. The new 90-cover pizzeria will have its basement transformed into a dough room. The company, which was founded in 2015, currently also operates two sites in Brighton and one in Hove. Rupert Davidson, co-founder of Fatto a Mano, said: “We’re excited to be throwing open the doors at 30 St Martins Lane, in the middle of Covent Garden’s buzzy theatre-district. We cannot wait to fire up the oven to feed our guests Fatto a Mano’s Neapolitan pizza. We’ve transformed the site, including removing a section of the first floor at the front of the building to create one space, so the vibrant, buzzy environment of our pizzerias is felt wherever you’re sitting.”

 

Fish and chip concept Hobson’s secures third London site: London fish and chip shop concept Hobson’s has secured its third site in the capital, near Charing Cross station. The business is set to open at 13-15 Villiers Street. Hobson’s has taken a new 15-year lease at a rent of £180,000 per annum, rising to £200,000 per annum in the fifth year on the site, which used to trade under the Lupita concept. Hobson’s currently operates fish and chip restaurants in Soho and Bayswater. The company said: “Hobson’s is a family business and a culmination of 25 years in the fish and chip trade, our family has run fish and chip shops from Cornwall to the Lake District.” It also runs Oliver’s fish and chip restaurant in Belsize Park. 

 

Gosnells launches £500,000 fundraise, targets second bar site: Gosnells, which opened the UK’s first mead bar last year, has launched a £500,000 equity fundraise as it looks to “redefine the landscape of cider in the UK”. It comes as the business has seen revenue more than double over the last 12 months. With more than 50% of the fundraise target already committed by existing shareholders, Gosnells said it will use the money raised to expand its success in the on-trade, where it is already on sale in venues such as Daisy Green, Cubitt House, Drake & Morgan and BrewDog, plus many independent pubs, bars and restaurants across London. Additionally, it said a search is underway for a second Gosnells bar, to build on the “huge success” of its inaugural venue in London’s Bermondsey. The business recently dubbed its 4% sparkling honey-based products as “Nectars”. The company said: “These Nectars are a bit like cider. They’re fizzy, alcoholic, gluten-free, come in lots of different flavours and available on draught and in eye-catching 440ml cans.” Founder Tom Gosnell said: “The £3bn UK cider category is stagnant and lacks the innovation and premiumisation seen in other alcohol categories. Mass-produced ciders are often laden with refined sugars and synthetic additives that are out of step with the contemporary consumer’s desires. Gosnells’ range of honey-based Nectars fill this void, with an innovative range of delectable, low-sugar, gluten-free beverages that don’t compromise on flavour and are available on draught, just like beer and cider.”

 

Norfolk McDonald’s franchisee opens four new stores after making loss in ‘financially challenging year’: Norfolk McDonald’s franchisee K Foley opened four new stores after making a loss in a “financially challenging year” to 31 December 2022. As previously reported by Propel, three of those stores, all based in Kings Lynn, were acquired in July. The other, acquired in April, saw franchisee Kevin Foley take over the store in Wroxham previously owned by his father, Terry, who was the first UK McDonald’s employee to be granted a franchise, in 1974.  Kevin, who is McDonald’s first UK-based second-generation franchisee, took his portfolio to 14 with the acquisitions. He said three of the stores are operating under a McDonald’s business finance lease, with the fourth being purchased for £290,000. It comes after the business made a loss in 2022, with a pre-tax profit of £1,277,178 in 2021 turning into a loss of £352,000, as costs rose by more than £4m. Turnover increased to £42,252,622 from £35,538,269 the previous year. Dividends of £325,000 were paid (2021: £218,000), with further dividends of £380,000 proposed following the year end. No government grants were received (2021: £116,731). “It was a financially challenged year,” Kevin, who has been a McDonald’s franchisee since 1999, said. “Although turnover grew with a full year of ten stores, the inflationary environment generated many challenges, with increased food costs resulting in a decrease of gross profit from 70.5% in 2021 to 65.8% in this financial year. Along with significant increases in many administrative costs, such as utilities, this resulted in an operating loss of £184,605, compared with a profit of £1,353,586 in 2021. We have taken measures in 2023 to address the reduced margin and loss position. A report issued during the year concluded that K Foley is currently meeting all national franchising standards – a Leading Edge Operator. This is the highest category of franchisee, a very positive result.”

 

Dishoom to open in Battersea next month: Indian restaurant group Dishoom has confirmed it will open its latest site, in London’s Battersea, next month. The group’s first site in south London will open on Electric Boulevard next to the Battersea Power Station development on Wednesday, 6 December. On the new 235-cover site, Dishoom co-founder Shamil Thakrar said: “I am a proud Londoner, and Battersea Power Station is one of those few genuinely iconic London buildings. When I was growing up, my father would endlessly lecture me on the importance of the power station and its provision of power for the city – I can’t quite believe we’re in the fortunate position to be opening right beside it. I’m genuinely thrilled.” The restaurant will also house a Permit Room bar – named after the official term for all Bombay drinking establishments, in which, according to the Bombay Prohibition Act of 1949, only permit-holders may consume alcohol. The bar will serve Dishoom’s cocktails, teetotal tipples, chai, coolers and more. Dishoom recently opened its first standalone Permit Room site in Brighton. The first Dishoom opened in Covent Garden in 2010, and the business now has six restaurants in London, one in Edinburgh, one in Manchester, and one in Birmingham, plus a dozen delivery kitchens and an online store.

 

Restaurateur Sumit Chadha opens new all-day restaurant in Bristol: Restaurateur Sumit Chadha has opened a new all-day restaurant in Bristol. Chada, who is also the owner of Sunshine Capital, has launched The Granary in Welshback. Originally built as a grain store, it morphed into musical venue Granary Club between 1969 and 1988 and has now been reborn as The Granary. It offers a modern British menu that “revolves around seasonal and sustainable ingredients with flavours inspired by the Byzantine trade routes”. The Granary’s culinary team is led by Charlie James, previously of Jamaica Street Stores, supported by head chef Cai Sherman, formerly of The Christmas Steps. Dishes include choice cuts of lamb cooked over fire such as lamb kofta with Westcountry yoghurt and coriander chutney, and slow cooked aubergine with makhani dahl. The bar offers a range of beer, cider, spirits, wine and coffee produced in the city. The launch has also seen the reopening of “The Granary Club”, a cocktail bar and live entertainment space that “honours its original legacy”. The Granary is the sister restaurant to Harbour House, which champions seasonal and sustainable seafood and launched in July 2020. Harbour House opened in the former Severnshed premises, which Chada bought along with four Coal Grill & Bar sites when Charterhouse Leisure went into administration in January 2020. Chadha said, “We as a team are really proud of bringing back The Granary, a much-loved institution, on to the Bristol food scene and are excited for what the future holds.”

 

Hotel group St James’ extends banking facilities after narrowing losses, closes one site as recent openings ‘build up to expected trade levels’: Hotel group St James’ has extended its banking facilities after narrowing its losses in the year to 31 December 2022. The business has also closes one of its hotels, as two recent openings “build up to expected trade levels”. Director Simon Hall, in his statement accompanying the accounts, said: “The group’s hotel in Winchester ceased trading in July 2023 following the end of its operating lease. This may cause overall group revenue to reduce in 2023. However, the group’s overall profitability is expected to improve as cost inflation and utility costs reduce, and international tourism continues to increase. Additionally, the group’s hotels in Bath and Stratford-upon-Avon, which only opened during and just before the pandemic respectively, continue to build up to expected mature trade levels.” Hall said the banking facilities for the Bath and Stratford sites were due to expire in May 2024, and while an agreement in principle has been struck to extend the Bath one until May 2026, discussion are ongoing to extend the Stratford one to the same date. It comes as the business narrowed its pre-tax loss from £1,388,000 in 2021 to £965,000 in the period. Turnover grew from £9,851,000 to £14,026,000 while an Ebitda profit of £135,000 turned into a loss of £492,000. This compares with turnover of £7,442,000 and a pre-tax loss of £3,700,000 in pre-covid 2019, when the company operated two unbranded hotels under third party leases and two hotels under related party leases – one of which opened during the year and one of which was closed for renovations. No dividends were paid (2021: nil). No governments grants were received (2021: £566,000). It has net current liabilities of £370,000 (2021: £229,000) excluding funding from its parent company of £19,013,000 (2021: £19,491,000).

 

Bear to open seventh site this month with Nottingham launch: Midlands cafe bar concept Bear will open its seventh site, in Hockley, Nottingham, this month. The company is launching the venue in Carlton Street in the premises that once housed both “hidden bar” Boilermaker and coffee shop Braze, before later becoming all-day coffee and cocktails concept Boca Lima. Opening on Thursday, 16 November, the venue will also feature the “Later at Bear” concept, which will see it offer fully stacked smash burgers, taco trays, loaded fries and twisted cocktail classics from 5pm. Craig Bunting, co-founder of Bear, said: “As a concept rooted in the heart of the Midlands, with our headquarters proudly based in Derby, we are elated to be bringing Bear to Nottingham’s vibrant Hockley neighbourhood. Taking on this iconic location is a natural and fitting next step for Bear, and we’re thrilled to become a part of the dynamic community in Hockley.” Earlier this year, Bunting told Propel that Bear has “global potential” after closing a private equity fundraise to help it open new stores.

 

Gulliver’s Kingdom reports turnover boost but profit falls on the back of increased costs: Family-run, four-strong theme park operator Gulliver’s Kingdom has reported turnover increased to £8,128,845 for the year ending 31 December 2022 compared with £7,190,673 the previous year. Pre-tax profit was down to £1,785,922 from £3,362,297 the year before. In their report accompanying the accounts, the directors stated: “The strength of the UK holiday market in 2022 together with positive weather in the holiday periods has seen a significant growth in our turnover. We have seen resident numbers increase in all of our accommodation facilities, at each of our theme parks, which has vindicated our decision to invest in these facilities throughout the covid pandemic, when times were tough. The cost-of-living increases have obviously resulted in an increase of costs to us, but has also reduced the spending power of our customers.” The business received government grants of £21,248 (2021: 3224,733). A dividend of £264,000 was paid (2021: nil). Ray Phillips opened Gulliver’s Kingdom in Derbyshire in 1978, with sister sites in Warrington and Milton Keynes opening in 1989 and 1999 respectively. The company then opened a venue in Rotherham in 2020.

 

Luxury Hotel Management takes over running of North Yorkshire property for third site following sale: Hotel operator Luxury Hotel Management is to take over the running of a hotel on the North Yorkshire coast for its third site. It follows the purchase of the Victoria Hotel in Robin Hoods Bay to wholly owned subsidiaries of Travel Sector Property Group in a deal brokered by Christie & Co. The property features 16 double en-suite bedrooms and food and beverage space, including The Captains Lounge, the main restaurant and bar, and the Sea View Orangery and Garden, which offers guests alfresco dining with panoramic views. The hotel had been owned by Andrew Fiddler for more than 12 years. Andrew Long, principal director of Travel Sector Property Group, said: “The Victoria is an iconic hotel that showcases the very best of the North Yorkshire heritage coast, with stunning views and a reputation to match. In due course, we plan to undertake an elegant and sensitive refurbishment programme to ensure the hotel retains its historic charm.” The Victoria Hotel will sit alongside its sister sites – the White Hart Hotel in Lincoln and the Polurrian on the Lizard hotel in Cornwall – that are also operated by Luxury Hotel Management.

 

North east operator Sayturk Group acquires lease of Newcastle cafe: North east hospitality and leisure operator Sayturk Group has expanded its portfolio after acquiring the lease of a European-style cafe bar in Newcastle. The company, which is headed by chief executive Zafer Saygilier, has taken over 93 Grey Street, which is currently home to Société, in a deal supported by Sweeney Miller Law. The acquisition of Société adds to the ongoing expansion of Sayturk’s portfolio, which includes late-night venues, pubs and luxury holiday apartments.

 

Former La Gavroche alumni to lead kitchen at new restaurant with rooms in West Sussex: Former La Gavroche alumni Grant Jones will lead the kitchen at a new restaurant with rooms in West Sussex. Jones, who has most recently worked as an international private chef for high profile clients, is chef de cuisine at The White Horse in Graffham. Formerly a small country pub, it has been completely refurbished and extended to offer a bar and 38-cover dining area, as well as a ten-seater private dining room. There will also be six bedrooms, located separately to the restaurant, plus a garden with seating and an outdoor kitchen for warmer months. Jones will produce dishes such as Sussex pork terrine with caramelised apple purée and hazelnut salad, and wild sea bass with Jerusalem artichoke, lobster beignet and rouille. There is also an eight-course tasting menu priced at £120, with an optional wine flight priced at an additional £90. There will also be local ales and beers from the likes of Langham Brewery and seasonally inspired cocktails.

 

Drop Bear Beer Co unveil plans for Wales’ first alcohol-free brewery following acquisition: Non-alcoholic beer brand Drop Bear Beer Co has unveiled plans to open its first alcohol-free brewery, in Swansea, after acquiring Welsh brewery Tomos Watkins. The new brewery will be located at the former Tomos Watkins site in Llansamlet. Due to open in January, it will be Wales’ first alcohol-free brewery and the largest in the UK at 16,000 square feet. Tomos Watkins had been owned by Connie Parry and her family since 2002. Business Live reported the new owners are Drop Bear Beer Co’s founding directors Joelle Drummond and Sarah McNena, who plan to run the traditional Welsh ale brand alongside their own range of non-alcoholic beer. The acquisition of the brewery and some additional brewing equipment was supported by a £1.9m equity investment raised in 2021, which included £1.5m from former chief executive of FTSE 100 company Admiral, Henry Engelhardt. Drummond and McNena are now looking to raise a further £700,000 to fund growth and expand capacity, which includes a further £300,000 investment from Engelhardt. Drummond and McNena started Drop Bear Beer Co from their kitchen in 2018, producing their non-alcoholic beer from just a ten-litre saucepan. It has since become one of the fastest growing businesses in Wales, and in its second year of operation, the company saw a growth in sales of more than 650%.