Pho sees strong underlying profit growth, well positioned to continue growth plan: Vietnamese street food restaurant group Pho has reported strong underlying profit growth in the year to 19 February 2023, after two covid-impacted years supported with government aid, Propel has learned. The 40-strong TriSpan-backed business opened six sites in the year (following three openings in 2021-22) and saw turnover increase 33.6% to £58.3m (2022: £43.7m). Its pre-tax profit stood at £1.8m (2022: £5.6m) while its Ebitda was £5.8m. The company generated £3.2m Ebitda to February 2020, just before the pandemic hit the UK (2022: £8.2m, which included a number of one-off events though covid including VAT and rates relief). Post year end, additional funding was secured from ThinCats to allow for continued expansion through the next few years. The company said: “Recent post year end activity includes new site openings at London Bridge, Milton Keynes, Canterbury and Liverpool Castle Street. The company has generated positive like-for-like sales in the first half of FY24. Pho will open on the ex-Bodeans site in Fulham Broadway next month, and on the former Moss Bros site in Renfield Street, Glasgow, early next year.” Patrick Marrinan, managing director of Pho, told Propel that the business had a “really good first half of FY24” and had a further five to six sites in the pipeline for next year. He said: “This [FY23] was the first relatively normal year after covid so and we're pleased to have generated profit growth across the business, especially compared with 2019-20. It's a challenging time for the sector as a whole but we're in a good position to continue our growth plan in 2024-25.” He also said that the company's smaller format site in Canary Wharf, which opened in February, has “exceeded expectations”. He said: “It's become a firm favourite among customers in Canary Wharf, which gives us the confidence to do similar sites.” Pho features in the Propel Turnover & Profits Blue Book. Its turnover of £58.3m is the 156th 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.

Sponsored message – majority of ‘good beer’ drinkers believe it is always worth paying more for quality food and drink: The majority of “good beer” drinkers believe it is always worth paying more for quality food and drink. Despite economic constraints, 93% of those surveyed by We Are Beer for its “The Good Beer Drinker 2023” report said they were uncompromising on quality. We Are Beer, the team behind London Craft Beer Festival, which run live events “celebrating beer and brewing culture”, surveyed thousands of British drinkers for the report, which identifies “good beer” drinkers as those who have helped push craft beer into the mainstream beer landscape. It also found that 83% of “good beer” drinkers belong to higher social grades, and more than 75% assert that friends turn to them for food and drink recommendations. The report also highlights five distinct drinker profiles and identifies ways in which to connect with them. Greg Wells, report author and We Are Beer co-founder, said: “It’s been brilliant to see that, despite the challenges we’ve all faced in recent years, good beer continues to resonate with drinkers, now more than ever.” To download the report, 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 next New Openings Database and videos from Propel Multi-Club Conference on Friday: Premium subscribers will receive the next The New Openings Database on Friday (1 December), at midday. The database will show the details of 142 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 an 8,500-word report on the new additions to the database. Premium subscribers also receive access to five other databases: the Propel Multi-Site Database, produced in association with Virgate; the Propel Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database; the Who’s Who of UK Food and Beverage; and the UK Food and Beverage Franchisee Database. Premium subscribers will also receive all the videos from this month’s Propel Multi-Club Conference on Friday. They will be sent 12 videos at 9am. Premium subscribers receive all the videos from Propel conferences each year – around 100 in total. 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 Mark Wingett. 

Hospitality Sector Council launches accelerator events to boost industry’s productivity: The Hospitality Sector Council, which was founded in April earlier this year, is launching the first in a series of accelerator events to address workflow productivity within the UK hospitality industry. The inaugural event will take place at Oxford Brookes University on 22 May 2024. The Hospitality Sector Council is a collaborative effort co-chaired by Dame Karen Jones between industry leaders and the government to deliver the first Hospitality Strategy. The Innovation Working Group (IWG), which is a component of the council, is focused on the identification and promotion of actions to support the creation of the next generation of hospitality start-ups, encourage technology adoption and overcome barriers to innovation. Independent research conducted by the IWG earlier this year found productivity, alongside energy efficiency, ranks as one of the most important areas of focus for innovation among hospitality operators. It is this area that the IWG aims to focus on at the event next May. Supported by the Hospitality Sector Council and its partners, the event is open and free to operators from restaurants, bars, pubs or cafes who are keen to explore creative ideas with others in the industry, alongside academics and innovators. Jane O’Riordan, who is a council member and chairs the IWG, and also chairs Caravan, Red Engine (Flight Club Darts and Electric Shuffle) and Turtle Bay, said: “Hospitality is a vibrant and immensely rewarding sector but it moves at such a pace that we often don’t have time to tackle innovative ways of addressing issues such as workflow productivity. We’re excited to be launching this Accelerator initiative with a simple but important goal: to find creative ideas and solutions that will benefit the entire industry. I look forward to bringing together operators, innovation experts, technologists, policymakers and professionals from related fields in our first facilitated workshop to develop actionable strategies to tackle labour-related challenges.”

Sector pays tribute to Russell Norman: The hospitality sector has paid tribute to award-winning restaurateur Russell Norman, who died last week aged 57, following a short illness. Norman was best known for starting the Polpo chain of restaurants, as well as spin-offs Spuntino and Polpetto. He was a hugely influential presence on the capital’s restaurant scene creating the trend for no reservations, kickstarting the concept that small, sharing plates meant more than tapas and revitalising the negroni. His business partner and friend Richard Beatty, a co-founder of Polpo and Spuntino, shared the news of Norman’s death in a statement: “It is with the greatest sadness I announce the loss of my best friend Russell Norman. After a short battle in hospital, he died surrounded by family and friends. Russell is survived by his wife and three children, and I ask that you respect the privacy of his family, friends and colleagues at this time.” In 2014, Norman presented The Restaurant Man, a six-part documentary for BBC Two. He was also the author of cookbooks – his first being Polpo: A Venetian Cookbook (Of Sorts), followed by Spuntino – Comfort Food (New York Style), and Venice: Four Seasons of Home Cooking. Norman opened a new restaurant, Trattoria Brutto, a traditional Florentine-style trattoria in Farringdon, in 2021, and released a new cookbook, Brutto: A Simple Florentine Cookbook, just last month. Charlie Gilkes, co-founder of Inception Group, said: “Very sad news indeed about Russell Norman. Remember visiting Polpo just after it first opened in 2009 – such a refreshingly new and exciting concept for London, and more recently enjoyed many great lunches and £5 negronis at Brutto. He left a huge mark and will be greatly missed.” Restaurant critic Jay Rayner said: “So sorry to hear of the death, far too young, of Russell Norman. He was one of the most gifted of restaurateurs, a terrific writer and an awful lot of fun to be around. He very much lived life his own way. My thoughts are with his family and friends.” Oisin Rogers, co-founder of The Devonshire pub in Soho, said: “RIP Russell Norman. A true genius admired by everybody in restaurants who had any clue what they were doing.” Chef Gary Usher said he based much of his Sticky Walnut restaurant design on Polpo. He wrote on X: “This is so upsetting for his loved ones. I based much of Sticky on Polpo. I had no pound signs on my menus because Russell didn't, I had no lamp shades because Russell didn't and my first menus were on recycled brown paper because that's what Russell did. An icon and inspiration RIP.” 

COREcruitment MD has second novel published: COREcruitment managing director Krishnan Doyle has had his second novel published. Dirty Angel: The Angel Rises is the second in a series that Doyle started writing during the covid lockdowns. His debut novel, Dirty Angel, was published in October last year. The follow-up book tells the story of 11-year-old Jane Banks, whose life has been mired by tragedy, with her mother brutally murdered and her father missing, presumed dead. Left alone, with huge gaps in her memory, to fend for herself at a boarding school where she is an outcast, she is hellbent on revenge against the man who killed her parents. But her opponent is a force to be reckoned with – brutal, heartless and sadistic, with the most powerful people in the world in his back pocket. The book is available from Olympia Publishers and on Amazon. Doyle has worked for COREcruitment for the past 17 years, covering leadership and senior business development roles spanning across restaurants and bars, venues and events, hotels and resorts and contract catering among other areas.

Job of the day: COREcruitment is working with a restaurant group that is looking for a general manager to join its team in Brighton. A COREcruitment spokesperson said: “Ideally, you will be a seasoned general manager with a strong focus on service and a keen understanding of the financial aspects of running a restaurant. Personality will be paramount, and the right fit will seamlessly complement the group's culture. Operating in a high-volume setting with a loyal customer base, thriving in a fast-paced environment is a must!” The salary is up to £50,000. For more information, email kate@corecruitment.com.

Buns from Home planning international expansion in 2024, long-term plan for 20-30 UK sites and two territories per year: Buns from Home, the London independent bakery brand, is planning its first overseas site in 2024, ahead of a long-term plan for 20-30 UK sites and two new international territories per year. The brand started as a lockdown project for Barney Goff and will open its 13th site, in London’s Victoria, “at the end of this year or the beginning of next”. Earlier this month, it announced plans to reach 30 sites within the next year, but its ambitions extend well beyond that. “As well as doing 15-20 more stores by the end of next year, the plan is to explore territory expansion, and hopefully we’ll do two territories,” chief operating officer Shereen Ritchie told this month’s Propel Multi-Club Conference. “The UAE will probably be our first – we’ve had a lot of interest, and it’s obvious that what we offer would work well over there. Our business model is scaling – we’re not going to be doing four or five a year, we’re going to be doing 20-25 and two territories. We can do a kiosk in ten days and a hub in three weeks, so we’re very scalable. We’ve got big plans, so keeping it simple and doing what we do best is very important.” On that point, Ritchie said she often gets asked if the business will branch out into pies and sandwiches, but added: “We know what we do well, and we believe that’s what our success will be driven on. We’ve experimented a lot, and it’s taught us to say in our own lane and stick to what we do best.” One change the brand will be making to its menu as it looks to expand, however, is its coffee offering. “Coffee will be an important part of our strategy next year,” Ritchie said. “We’ve expanded really quickly, and coffee is a low-hanging fruit. We’ve got solid foundations, but to be able to move forwards and enhance what we’ve got, coffee is a big part of the plan. Delivery is also a low-hanging fruit – we’ve just started it, and it’s going to be a massive part of our future.” Despite those stated ambitions, Ritchie admitted finding good deals to open more Buns from Home stores is going to be more difficult than before. “Six to 18 months ago you were getting good deals with landlords, but rent deals are changing now,” she said. “More people are going for prime locations and you’re not getting the discounts you were before. We’re going back to what we saw pre-covid in a lot of prime locations, with rents and rates more challenging, and it will be harder for the next 20-30 we do versus the first couple.” Ritchie will provide further insight in her video from the Propel Multi-Club Conference. Premium subscribers will receive access to all 12 videos from the conference on Friday (1 December) at 9am. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription. 

Nightcap – opportunity to reach well above 150 sites across existing brands: Nightcap – owner of the Cocktail Club, the Adventure Bar Group, Dirty Martini and the Barrio Familia group of bars – believes there is the opportunity to reach well above 150 sites across its existing brands during its next phase of growth. Last week, the business reported like-for-like sales in the 13 weeks to 1 October 2023 were down 16.7% compared with the previous year due to the impact of “additional rail strikes and extremely warm weather throughout September”. Chief executive Sarah Willingham said that the current 46-strong business “will not be in a position to reach its fullest trading potential until the industrial action has been settled”. The company said: “With the addition of Dirty Martini we consolidated our existing site clusters in Bristol (five bars), Cardiff (three bars), Birmingham (four bars) and parts of London such as Shoreditch (four bars), the City (five bars) and Covent Garden (four bars) all operating well within a short distance of each other enhancing the late-night offering in the local city centre areas. We also acquired Dirty Martini sites in new northern locations Leeds and Manchester, adding to our first Tonight Josephine site in Liverpool, all cities with significant potential for us to build new clusters. Bristol and Birmingham are both great examples of the potential for expansion using our diversified brand cluster strategy. In Birmingham we operate four bars and would expect to generate annualised revenue in excess of £8.5m based on our budget for the 52 weeks ended 30 June 2024. In addition, we have identified at least another three locations that would be suitable for Nightcap brands in Birmingham. In Bristol, Nightcap currently operates five bars across The Cocktail Club, Tonight Josephine, Blame Gloria and Dirty Martini brands. We would expect to generate annualised revenue in excess of £6m based on our budget for the 52 weeks ended 30 June 2024 and we have identified at least another two locations that would be suitable for Nightcap brands in Bristol. As we break the Nightcap bars into clusters both inside and outside of London, it becomes clear just how great the potential is for a multi-brand bar operator like Nightcap with dozens of cities being suitable for our multi-site operation. Nightcap has identified sites and cities using its cluster strategy and believes there is the opportunity to reach well above 150 sites across its existing brands during the next phase of growth. We are excited to combine our multi brand cluster approach by taking significant steps to digitally connect our loyal and engaged consumers across our clusters, to provide them with fresh, innovative and differentiated ways of enjoying their best nights out with us wherever they live, study or work.”

Rekom UK hires AlixPartners as it swaps nightclubs for bars as students stay in: Rekom UK is swapping discos for bars as cash-strapped students ditch the dancefloor. The Danish owners of Rekom, operator of the Pryzm, Fiction and Eden brands, have hired AlixPartners to help pivot the business towards bars and away from nightclubs, reports The Sunday Times. The involvement of AlixPartners has stoked speculation that Rekom’s UK arm was facing a squeeze on its finances but chairman Peter Marks insisted that AlixPartners was brought in to independently verify the plans. Rekom Group operates 200 bars, pubs and nightclubs across Denmark, Norway, Finland, and the UK. Rekom is backed by Danish private equity firm CataCap and bolstered its UK arm by buying Deltic out of administration in 2020. Deltic itself emerged from the Luminar empire of the late “disco king” Steve Thomas. Rekom now operates 36 UK clubs and 12 bars. Marks said its nightclubs are struggling because of poor midweek trading that is driven by students. It will sell off some nightclubs and open new bars under the Proud Mary and Heidi’s Bier Bar brands. Marks told Propel: “It is financially difficult for students and we need to change the emphasis of our business over time and concentrate on the cluster strategy of several venues in one city.”

Hooters looking to expand across UK through franchising: US sports bar and grill chain Hooters is looking to expand in the UK through the launch of a new franchise offer. The brand announced plans for 36 new UK locations in 2008, but following the closures of sites in Cardiff and Bristol, only its long-standing Nottingham location and a new one in Liverpool, which opened in 2022, remain. It last year received the go-ahead to open in the former Frankie & Benny’s unit at Salford Quays, Greater Manchester, but the site is yet to open. Hooters has now partnered with Brand Mark Franchising with a view to rolling the brand out into more UK towns and cities. “Hooters of America is now partnering with Brand Mark Franchising to develop this iconic franchise brand across the UK,” said Brand Mark director, Paul Davies. “We are full on for recruiting the best of British franchisees, looking for an area master franchise or single store buyers. Just starting now in the UK, and Brand Mark Franchising is providing the consultancy and leading the way. 2024 is going to be a year of opportunity with Hooters outlets, of any suitable size for the location, sprouting up. Don’t imagine that all outlets will be behemoths, that’s a fallacy. City outlets can be around 5,000-6,000 square feet, but in smaller towns we will be setting up smaller outlets.” Hooters already operates franchises in the US and abroad, among its worldwide estate of more than 400 sites. “The rising demand for convenient, delicious food, combined with the increasing popularity of sports bars and casual dining, makes now a profitable time to invest in an industry icon like Hooters,” it said. “As Hooters continues to evolve and expand, we owe our success to the unwavering support of our passionate community of fans and the dedication of our franchisees, who uphold our brand standards with pride.” The chain has been accused in the past of sexism and objectification due to its scantily clad waitresses, and the Salford Quays site, which will be located at 3 Capital Quay, received 91 objections. In January, Julian Mills, who has run the Nottingham Hooters for the last 21 years, told the Manchester Evening News he hoped the Manchester site would open this year, but it has, as yet, failed to do so.

MFG opens first Burger King drive-thru and third Miss Millie’s site: Motor Fuel Group (MFG), the UK’s largest independent forecourt operator, has opened its first Burger King drive-thru and its third Miss Millie’s site. MFG entered into a franchise deal with Bridgepoint-backed Burger King UK in June 2022 and had opened three sites under the partnership, following its debut at the BP-branded petrol station in New Wolfe in Chester Road in Manchester. It has now opened its first drive-thru under the partnership, at MFG Meads in Arterial Road in Purfleet, Essex. MFG has also now opened its third site under a separate partnership with south west operator Miss Millie’s. The fried chicken brand branched out into the garage forecourt sector after striking a deal with MFG in March, followed by openings in Wellington, near Somerset, and in Langney, near Eastbourne. MFG’s third Miss Millie’s site has now opened on the roundabout between the A392 and Trevemper Road, in Newquay. “Today we marked the opening of our third Miss Millie’s store with partners Motor Fuel Group,” Miss Millie’s said. “Great to see so many customers coming and trying Miss Millie’s awesome chicken for the first time!”

Various Eateries appoints Scott Williamson as people director: Various Eateries, the Coppa Club and Noci operator, has appointed Scott Williamson, formerly of Cote and Sticks ‘n’ Sushi, as its new people director. Williamson worked at Cote for more than seven years, including 12 months as its group recruitment and HR director. He also spent 14 months as HR manager at Japanese restaurant brand Sticks ‘n’ Sushi. More recently, with business partner Ian Apsley, he has operated The Highway Inn in Burford High Street, Oxfordshire, and been a senior executive consultant at Bee Recruitment. Earlier this month, Various Eateries said its Noci concept provides a “very compelling near-term rollout opportunity” with focus initially on further openings in the Greater London area. The company opened its third site under the handmade pasta concept earlier this autumn with a launch in London’s Shoreditch. The group said trading performance for the year ending 1 October 2023 was in line with expectations, with revenues slightly higher than market expectations at £45.5m (unaudited), up from £40.7m in 2022, largely driven by new site openings. 

Apex Hotels looking more to rural market as it expands after undergoing refinancing, returns to profit: Apex Hotels is looking more to the rural market as it expands after undergoing a refinancing and has also reported a return to profit. Turnover increased to £74,818,000 for the year ending 30 April 2023 compared with £47,293,000 the previous year. This was just below the £75,470,000 reported for the year ending 30 April 2019 – the last full year before the covid pandemic. The business, which operates nine four-star hotels, mainly in cities, made a pre-tax profit of £8,957,000 compared with a loss of £2,707,000 the year before (2019: profit of £11,799,000). This was a result of the group selling its only three-star property – the Apex Haymarket Hotel, which generated a gain on sale of £3,652,000 and receiving £2,545,000 in business interruption insurance payments (2022: nil). In July 2023, the company entered into a new financing agreement with Barclays Bank, securing a five-year term loan of £47.9m and a £10m revolving credit facility, to support its growth plans. The funds, along with £53m proceeds generated from its disposal of its London Wall hotel, were used to repay existing arrangements with Royal Bank of Scotland, including £10m borrowed through the Coronavirus Business Interruption Loan Scheme, which was due for repayment in February 2024. Also in July 2023, the business acquired Pine Trees Hotel in Pitlochry, a four-star hotel in rural Perthshire, for £3m. “This strategic purchase plays an essential part in the growth of the business and is the first step towards the execution of future diversification plans,” the company said. In their report accompanying the accounts, the directors stated: “Following the impact of the covid-19 pandemic across the previous three years, ending with the lifting of UK wide restrictions in March 2022, the group experienced a significant increase in demand across all our hotels, from both the corporate and leisure markets.” Average room rate rose to £146.97 from £129.68 the previous year. Occupancy improved to 78.0% from 51.4% while revpar was up to £114.69 from £66.69. No government grants were received (2022: £689,000). No dividend was paid (2022: nil).

Boulangerie Bon Matin to open fourth London site: Boulangerie Bon Matin, the halal artisan bakery and brunch concept, is to open a fourth site in London. The company, which was founded in 2010 by Dahmane Ladjassa, will open the site in Finchley Central. The site will also act as the company’s central production unit, as the business looks to “centralise production and provide office space for future growth”. The concept opened its first site in Finsbury Park. The second opened in Hampstead in late 2017, and it has become a welcome hub for the community. The third opened in October 2020 in the new development next to Finsbury Park station, City North.

Continuum Group begins paying dividend again following turnover and profit boost, opens £1.5m Loch Ness visitor centre: The Continuum Group – which operates eight UK attractions through partnerships, management contracts and an owned portfolio – has begun paying a dividend again after reporting a turnover and profit boost in the year to 31 January 2023. Turnover grew from £9,681,133 to £16,313,002 in the period, while its pre-tax profit was up from £1,276,780 to £1,489,095. This compares with turnover of £15,290,393 and a profit of £983,398 in the last full year before covid, ending 31 January 2020. Dividends of £391,000 were paid (2022: nil). The company received no government grants (2022: £340,632) and £10,000 in other coronavirus support grants (2022: £196,785). It also received £1,795,761 in attraction contributions (2022: £1,121,664) following the closure of the I’m a Celebrity Jungle Challenge attraction. The previous year saw a £100,000 insurance claim received. Post year end, the business opened a new £1.5m Loch Ness visitor centre attraction. Director Juliana Delaney said: “Against a backdrop of volatile UK inbound and domestic tourism trends, the group set prudent budgets. The agreed strategic focus of the board and its executive directors was to deliver sustainable growth through appropriate investment in existing attractions, acquisition or creation of new attractions, augmented by profitable management contracts and partnerships. Resources to generate growth would come from the company’s cash reserves and bank funding. Continuing a board approved three-year investment plan, the quality of the guest experience and ambience across existing sites is undergoing improvement. The overall performance of the group was ahead of budgeted levels.” The company’s owned portfolio includes GreenWood Forest Family Park in North Wales and Spinnaker Tower in Portsmouth, while its partnerships include Emmerdale the Village Tour in Leeds and the Coronation Street Experience in Manchester. It also operates The Real Mary King’s Close in Edinburgh, York’s Chocolate Story and Oxford Castle and Prison, as well as the new Loch Ness attraction.

Beaufort House owners to open second Azteca restaurant site: The owners of Beaufort House, the Chelsea-based events venue and brasserie, are to open a second restaurant in the capital, under their Azteca restaurant concept, Propel has learned. The business has secured the former The Breakfast Club site at 5-9 Battersea Rise, for a new opening under the Mexican concept. Beaufort House founders Simon Oldham and Louis Hysa already operate an Azteca restaurant in the Kings Road in Chelsea. Salvatore Di Natale and David Kornbluth, of CDG Leisure, acted on the Battersea Rise deal.

North west gym franchise opens first of three new Wirral sites: North west gym franchise Transform Hub has opened the first of what will be three new sites on the Wirral. It has opened at Unit 5 in Lake Enterprise Park, the 17th Transform Hub site. While most are located in the north west, it also has gyms in Egham in Surrey, and in Wimbledon, south London. The new sites will be led by directors Nick Hodson, who has more than 25 years’ experience running a family-owned healthcare recruitment business, and Jamie Leighton, who has been a personal trainer and professional coach since 2009. They secured the deal following £32,000 from Bathgate Business Finance. Hodson said: “We sought external funding to support the launch of our first Transform Hub in order to preserve some headroom for working capital, which is always a challenge with a new business.” Leighton added: “Transform Hub is unique in that we’re not targeting ‘gym bunnies’ but rather people who have tried lots of different diets and gym programmes without success.”

Sourdough Sophia lines up second site: Sourdough Sophia, the London micro bakery concept, which earlier this summer raised £500,000 through a crowdfunding campaign to aid its further growth in the capital, has lined up its second site. Propel understands that Sourdough Sophia has lined up an opening in Essex Road, Islington, with an opening planned for next March. Founded by Sophia Handschuh and Jesse Sutton-Jones in Crouch End, the business achieved sales of nearly £1m last year out of its 650 square-foot bakery site. The company, which said it has an 87% repeat customer rate and a £10.26 average spend in store, raised the funds through Kickstarter in under three weeks. Sourdough Sophia plans to use the new investment to triple the capacity of its existing site and have a second store open next year, with a third store opened by 2025. It is targeting revenues of £3m by 2026.

Scottish holiday park business sees drop in turnover and profit: Scottish holiday park business Wood Leisure, which operates six sites in the country, saw a drop in both turnover and profit in the year to 31 January 2023. Its pre-tax profit fell from £2,075,691 in 2022 to £843,185 as turnover dipped from £8,876,785 to £7,681,265. This compares with a profit of £1,026,909 and turnover of £6,250,873 in the last full year before covid, ending 31 January 2020. The company received £8,222 in government grants compared with £145,546 in 2022. Dividends of £153,000 were paid (2022: £91,800). Director Rachel Dishington said: “2022 heralded rising interest rates, inflation in every sector, huge increases in electricity and gas prices and staff demands for cost of living increases in wages. All of these massively impacted on our business and it wasn't possible to recover all of these increases through higher prices to our customers. Government interventions to support businesses ended and the legacy of covid continued to create challenges. 2022 staycations continued to be popular, although not at 2021 demand. Wood Leisure continued to focus on driving the business forward, developing new pitches, investing in upgrades of accommodation and infrastructure on the holiday parks, implementing new technologies and training and developing staff. Availability of holiday homes began to improve at the end of 2022 offering variety, choice and potential for upgrading although costs have spiralled. The cost of living demands on our customers will impact negatively on the sales of caravans and lodges as well as the lucrative short break market. The escalating interest rate costs, the massive increase in business rates and the increase of corporation tax will impact very negatively on the profitability of the business. Challenges lie ahead, but the Wood Leisure family continues to thrive despite the adversities and uncertainties of the business world.”

LGBT venue G-A-Y Late to shut: LGBT venue G-A-Y Late in London’s Soho will shut next month, owner Jeremy Joseph has announced. Joseph, who also owns Heaven and G-A-Y, said he made the decision with “great sadness” and understands the news will come as a “shock” to loyal customers. In a letter shared on social media, Joseph outlined a number of reasons for the decision including a spike in attacks on customers and staff leaving the venue late at night and increased building and development works in the surrounding area. “Crime continues to be one of the biggest issues for LGBT venues, but even harder when you are a venue with no other venues around you,” he added. The venue in in Goslett Yard will shut on Sunday, 10 December. Joseph confirmed no staff members will lose their jobs as a result of the closure and instead will be moved to new roles at G-A-Y and Heaven. Alongside this, G-A-Y’s licence is going to be extended to 1am and an application has been put in to increase Heaven’s capacity and make it a wheelchair accessible venue for the first time in its 44-year history. The Night Time Industries Association said: “The closure of G-A-Y Late underscores the fragility of businesses within the nightlife sector across the UK. This industry, which plays a crucial role in fostering diversity, inclusivity, and cultural expression, faces unprecedented challenges.”

South London McDonald’s franchisee makes a loss due to increase in business rates and utilities: South London McDonald’s franchisee Manor Restaurants, owned by Terry Eagle, made a loss in the year to 31 December 2022 due to increases in business rates and utilities. A pre-tax profit of £1,392,278 in 2021 – which was its first in five years – turned into a loss of £557,178. This was off turnover of £24,890,091, which was up slightly on the £24,788,998 reported in 2021. “The total for the prior year includes turnover of £3,002,301 from a store that was sold in October 2021, with this figure excluded like-for-like turnover is up 14.2%,” Eagle said. “Gross margin has decreased by 4% to 64.7% (2021: 68.7%). The business has seen a significant increase in the price of raw ingredients as a result of the current inflationary pressures within the UK economy, and these are responsible for the fall in gross margin. Operating margins have fallen from 5.6% in 2021 to 2.2% in 2022. The decrease in gross margin is the largest contributor to this. Other primary factors are the return of a full year’s charge for business rates, increases in the costs of utilities in particular electricity and an increase in directors pension contributions. The shareholders’ funds of the company show a deficit of £493,486 (2021: surplus £176,730).” No dividends were paid (2021: nil). The business operates four McDonald’s restaurants. Eagle started working for McDonald’s in Catford in 1976, progressing to restaurant manager and area manager before acquiring his first franchise restaurant in Camberwell at the age of 29.

Premier Inn set to be operator of new Leeds hotel: Premier Inn, owned by Whitbread, is set to be the operator of a new hotel in Leeds. A pre-let lease has been agreed for the hotel, which would fill the top five floors of a new six-storey building at Kirkgate Market in George Street. The planning application for the grade I-listed market building, submitted by Leeds City Council, will be considered by the council’s city plans panel on Thursday (30 November). If the application is approved, it is hoped work will start next year on a scheme that would create about 50 jobs once operational. The hotel would feature 143 rooms as well as a bar and restaurant for guests, while its ground floor would be home to commercial units and a council-run gym. Paul Smith, acquisitions manager for Whitbread, said: “We know Premier Inn customers spend £140 per night per bedroom outside of our hotels when they stay in city centre locations like George Street in Leeds. This money excludes what our guests spend on their accommodation, with food and drink, entertainment and non-food shopping being the largest categories of spending. Multiplying this figure across a high-occupancy 143-bedroom Premier Inn in George Street would generate a multimillion-pound boost to the local economy.”

Operating partner being sought to help regenerate Margate’s Winter Gardens destination: Thanet District Council is seeking a partner to help it regenerate Margate’s Winter Gardens destination. The council has retained agent Colliers to secure a new partnership “with a specialist performance, leisure and events business” that will “regenerate the iconic Winter Gardens while safeguarding its important heritage”. The 51,000 square-foot, grade II-listed venue’s doors were temporarily closed in August 2022, having previously hosted the likes of The Beatles and Laurel and Hardy during its 111-year history. The council is committed to bringing the venue back to its former glory as part of its £22.2m Margate Town Deal programme. The seafront venue sits in two acres of grounds and includes two performance spaces, with the main hall having capacity for 2,150 people standing, while the Queen’s Hall has capacity for 600. Paul Bugeja, of Colliers’ licensed and leisure team, said: “The council is seeking a partner that can honour the history of this venue, while also bringing it up to date and making it inviting to residents as well as visitors to Margate. We have seen how exciting regeneration plans for landmark buildings such as the Eastbourne Winter Gardens and De La Warr Pavilion, Bexhill, have revitalised coastal towns. We’re looking to secure a partnership that has a vision to reignite the entertainment offering in Margate and deliver on the expectations of the local community.”

Dalata opens first London hotel under Maldron brand: Irish hotel operator Dalata has opened the first site in London for its Maldron brand. The four-star Maldron Hotel Finsbury Park is the group’s 53rd hotel in the UK, Ireland and continental Europe and the first of five new Maldron hotels set to open across the UK in the next 12 months. Dalata, which also operates Clayton Hotels, purchased the ready-to-open 191-bedroom hotel at Finsbury Park for £44.3m and immediately invested a further £4.1m. Dalata also has ambitious plans to open Maldron hotels in prime locations including Shoreditch in east London, Brighton, Liverpool as well as adding a second Maldron hotel in Manchester. Chief executive Dermot Crowley said: “We are very proud to open Maldron Hotel Finsbury Park, the brand’s first hotel to open in London. But with Maldron Hotel Shoreditch opening early next year, it won’t be on its own for long. Earlier in the summer Dalata Hotel Group also opened the Clayton Hotel London Wall, which underlines our determination to grow our presence in London. Elsewhere, the company is in expansion mode, with an exciting pipeline in prime locations throughout the UK, Ireland and continental Europe having recently acquired a landmark hotel in Amsterdam.”