Exclusive – Whitbread exits healthy food-to-go concept Pure: Whitbread, the Premier Inn owner, has exited Pure, after nearly eight years of backing the healthy food-to-go concept, Propel has learned. The Brewers Fayre and Beefeater owner acquired a 49% stake in the then eight-strong Pure in May 2016, for £6.8m. It had an option to acquire the remaining 51% stake after two years from its initial investment, but never took it up. The then Whitbread chief executive Alison Brittain said at the time: “As the UK’s largest hospitality company, it’s vital that Whitbread has its finger on the pulse of consumer trends and that we innovate with new formats and concepts. I see considerable opportunities to grow the brand and by taking a stake in Pure we fast become part of a business that specialises in the exciting growth market for natural, healthy takeaway food and drink.” At the end of last month, all shares of Healthy Retail Limited (HRL) were purchased by a newly incorporated company Healthy Retail Group Limited (HRGL). The company said: “As part of this transaction, all shareholder loans to HRL have been written-off and Whitbread Group PLC, who held a 49% share in HRL, have exited the business. HRGL has received £1.5m from Sophie Management Limited, a company owned by RBC Trustees (Jersey) Limited. RBC Trustees (Jersey) Limited is also the majority shareholder in HRGL. HRGL has loaned £1.5m to HRL on 22/12/23 which satisfies the funding requirements for HRL for the foreseeable future. These post balance sheet events mark a pivotal moment for Healthy Retail Limited. As part of this new investment process, HRL will also be exiting two loss-making shops in early 2024, the net book value of the fixed assets in these two shops at the year-end was £224,000. Management believes that the realignment of ownership and introduction of new equity partners will strengthen not only the company’s financial position, but also enable the business to drive sustainable future growth.” Pure, which was founded by Ed Bentley and Craig in 2009, grew to 22 sites, with the majority in London. It opened its first airport site, at Gatwick in summer 2020. In September 2020, it underwent a CVA process. It currently operates 16 sites across London, plus the site at Gatwick airport and two catering hubs for corporate clients. The new investment comes as the company saw its turnover for the year to 29 December 2022 stand at £20,049,719 (2021: £9,634,614) as it started “to recover from the two devastating years of 2020 and 2021, where sales did get not get above £10m”. Its pre-tax loss stood at £4,559,421 (2021: (£3,454,333)). The company said: “Although sales doubled, the 100%+ sales growth does not tell the full story of how 2022 started and ended for the company. Until February 2022, government instructions recommended that people work from home if they could. It was not until March 2022 that some good trading conditions resumed. Conversely, just as footfall in London was starting to normalise, strikes across the train and tube network brought another unwanted level of disruption and losses (which still impact the company today). It is estimated that the strikes have caused at least £600,000 of losses over 2022 and 2023, millions of pounds of lost sales and has had an undefinable impact on the momentum of returning to offices. Equally disappointing news for Pure was that two of the company’s best shops pre-covid (both with Network Rail and both due to Network Rail works in these respective stations) were closed in August and October 2022. Fortunately, the one at Waterloo Station was only temporary and this reopened successfully in February 2023. The loss of these two shops was a further blow in Pure’s recovery from covid. The sequence of events outside of the company’s control got worse as the year drew to a close with rapid inflation and rising interest rates meaning that, although more people were on the move near Pure’s shops in central London, this was undermined by a decline in disposable income for consumers. But if the Pure team has acquired one thing over the last few years, it is resilience. This has meant that the team’s inventiveness and passion for putting pleasure back into food on-the-move and at work for its customers has never been stronger. Staying true to these values has enabled Pure to keep growing in 2023 – with two shops opened during this financial year – and to set the company for future success as trading conditions normalise.”

Wenzel’s pays dividends of £2.5m despite drop in profits, invests in facilities to allow for more store openings: Wenzel’s, which operates more than 100 bakery stores in southern England and the Midlands, paid dividends of £2.5m in the year to 31 March 2023 despite a drop in profits, and invested in the necessary facilities for more store openings. Turnover was up from £55,919,493 in 2022 to £61,431,678 as the business opened 13 new stores during the year to take it to 102 locations. It has since opened six more to currently operate 108 shops. Its pre-tax profit fell from £6,634,769 in 2022 to £2,399,658 as costs rose by almost £3.5m. It received no government grants compared to £10,936 in 2022. Dividends amounting to £2,500,000 were paid (2022: £2,200,000). Peter Wenzel, who founded the business in London in 1975, said: “The directors are pleased with the results for the year. During the year we invested into our head office and bakery in order to be able to service the opening of more shops in the coming years. Based on our principal of delivering quality products at affordable prices with outstanding customer service, we have seen increasing demand for our products in recent years. We plan to meet this demand by opening additional shops in this year and the directors anticipate a further increase in both turnover and profit. To assist with the level of demand created by these additional shops, we are in the process of developing and expanding the bakery.” Last month, Wenzel’s expanded into the south west for the first time with an opening at The Dolphin shopping centre in Poole, Dorset. Wenzel’s features in the Propel Turnover & Profits Blue Book. Its turnover of £61,431,678 for the year ending 31 March 2023 is the 154th 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.