Karma Kitchen has eight sites in pipeline, will open two more in London this year and acquire its first regional sites while exploring international opportunities: Karma Kitchen, the Crosstree Real Estate Partners-backed dark kitchen operator, has told Propel it has eight sites in pipeline and will open two more in London this year, and acquire its first regional sites while exploring international opportunities. Siblings and co-founders Eccie and Gini Newton opened a fifth site for their concept in October, in Sydenham, which will be followed this month by a sixth, in south west London. At the same time, construction will begin on a site in west London, and the first spade will go into the ground on an eighth site in the middle of 2024. “We have eight locations in the pipeline right now, we want to bring two or three more into London, and anything else would be new territory,” the sisters told Propel. “We’ll be making some acquisitions as well – up to two more in London, and then potentially our first few outside of London, and we’re just deciding where those might be. We’re looking at places like Bristol and Brighton as well as different territories across Europe. We’ll be investigating initial overseas sites in 2024, and by the end of next year we’ll have a better idea of what other territories we want to enter.” Back in the summer of 2020, the business spoke of targeting 53 sites by 2025, but the sisters admit they have “had to moderate that a little bit”. They said: “When we set our original goals, we were looking at small sites. We’ve now made the call to focus on freeholds; we’ve slowed down our approach and focused on really good freehold properties. The buildings we’re looking to acquire now are much bigger than we initially planned. We’re opening fewer sites than planned by 2025, but the scale of those sites are beyond what we ever imagined, and the number of individual kitchens will probably be something similar to what we had anticipated, just over a smaller portfolio.” In terms of funding, the sisters say the business is fully funded with Crosstree for all the growth they want to do in the UK, following a £100m investment in late 2021. They added: “A real area of growth for next year is servicing larger businesses on longer term leases – businesses that want 1,000 to 10,000 square feet on a ten-year lease – and our west London site will focus largely on that. We’re seeing partners wanting to expand with us and scale their businesses across multiple sites. There’s a lot of focus on delivery in the wider market but we only see it as a small piece of the jigsaw as we also focus on central production units and food manufacturing.”

 

Restaurant Marketer & Innovator European Summit 2024 open for bookings: Restaurant Marketer & Innovator European Summit is returning for its sixth edition, and tickets are now on sale. The event is a partnership between Propel and Think Hospitality, aiming to build a community, promote the sharing of ideas, recognise talent and define the future of eating out. Bookings are now open for the two-day conference, as the centrepiece of the January event series, taking place on 23 and 24 January at One Moorgate Place in London. The conference will focus on marcomms strategies, proposition and concept development, the latest market insights, technology and digital developments, diversification of revenue streams and how brands are adapting to the new normal. It is designed for marketing, development and innovation teams, as well as senior executives and investors wanting to better understand the latest marketing, innovation and development opportunities to build market share and grow. Day one speakers include: Andreia Harwood, marketing director – EMEA at Wingstop; Sam Bourke, marketing director at Fuller’s; Sarah Collins, head of marketing at the Rick Stein Group; Jessica Wight, marketing director at Bistrot Pierre; François Blouin and Claire Diemer, chief executive and director of qualitative studies respectively at Foodservice Vision; Katy Moses, managing director at insight consultancy KAM; Lina Olea, marketing director at Wireless Social; Jack Jolly, senior marketing manager at Mission Mars and founder of H!JACK; Charles Spence, professor of experimental psychology at the University of Oxford; Amanda Mason, head of marketing at Roadchef; James Coldrey-Mobbs, sales and marketing director at East Coast Concepts; Anthony Pender, co-founder of Our Yummy Collection; Natalie Waldron, of Natalie Waldron Design; Dan Burns, of Natural Selection Design; Matt Preisinger, marketing and brand director at Brewhouse & Kitchen; Thom and James Elliot, co-founders of Pizza Pilgrims; Siobhan Lloyd, marketing manager at 200 Degrees Coffee; Julius Wiesenhütter, founder at GetViola; Megan Burton-Brown, marketing director at Tortilla; Simon Potts, chief executive of the Alchemist; and Natasha Sideris, founder and chief executive of Tashas Group. For the full schedule, click here. A one-day ticket for operators is £295 plus VAT while a two-day ticket is £550 plus VAT. Supplier tickets are £395 plus VAT for one day and £700 plus VAT for two. Tickets can be purchased by contacting Jo Charity at Propel on jo.charity@propelinfo.com.

Sacha Lord – recent closures ‘tip of the iceberg’: Sacha Lord, the Night Time Economy Adviser of Greater Manchester, has said he believes the recent closures in the sector are the “tip of the iceberg” and reiterated calls on the government to prioritise meaningful help for hospitality. Lord said: “I am saddened to hear of the string of restaurant closures across the UK this week including Simon Rimmer’s restaurant Greens here in Didsbury, Greater Manchester. We are now seeing the unfortunate damage that the turbulent economic year has caused in real terms. The closure of Greens is a stark example that even in regions of relatively high disposable income, the financial pressures on small businesses are simply no longer viable especially when household budgets are being squeezed more than ever by food price inflation or rising energy costs. With MPs not returning to Westminster until next week, I would urge ministers of both parties to take this time to meet small business owners in their constituencies to truly understand the realities they are facing in this difficult climate. It is only by listening to experts and the business owners on the ground that the right policies can be made which not only stimulate economic growth in the long term but help ensure the viability of the UK’s fifth biggest industry for the years ahead.”

TfL warns looming walkout will leave ‘little to no service’ on London Underground for four days: Transport for London (TfL) has warned there will be “little to no service” on the Underground network for four days after a fresh strike begins later this week. Members of the National Union of Rail, Maritime and Transport Workers (RMT) working in various sections of the London Underground are due to walk out between Friday (5 January) and the following Friday (12 January) in a dispute over pay. TfL says the strike will bring “severe disruption” to Tube services for the four days from Monday (8 January) to Thursday (11 January).

Job of the Day: COREcruitment is looking for an operations director for role in central London. The client is looking for an experienced professional in the private members’ club industry, ready to take on a remarkable challenge. They will have the opportunity to join an expanding group and become part of an exciting new venture set to redefine the members' club experience. They will be instrumental in establishing the food and beverage (F&B) operation as the anchor for guests, and the ability to manage third-party relationships and client/stakeholder interactions will be crucial. The client is seeking a seasoned candidate with a wealth of experience in new openings and a background in premium, on-trend F&B operations. Previous exposure to the members club or lifestyle sector is essential, along with a solid foundation in restaurant management. Salary is circa £100,000. For more information, contact Kate@corecruitment.com.

 

Mission Mars begins building 2024 openings pipeline for Rudy’s: Mission Mars, the BGF-backed operator of Albert’s Schloss and Rudy’s Pizza Napoletana, has added further sites to its 2024 openings pipeline for the latter 20-strong brand. The company, which aims to open a further ten pizzerias in FY24, has already secured openings in London’s Shoreditch High Street, Tottenham Court Road and Spitalfields, plus in Durham’s Silver Street. It has also lined up sites in High Ousegate, York, and on the former Black Pearl site in Bridgford Road, West Bridgford. Propel understands that the company is also in talks on a site in London’s Queensway for the pizza brand. Talking last month on the back of the company’s full-year results, Roy Ellis, chief executive of Mission Mars, said: “Strong trading across all venues for a sustained period gives us confidence that both our Albert’s Schloss and Rudy’s Pizza Napoletana brands are well set to deliver growth and are likely to trade successfully in all parts of the UK. We continue to search for the best locations, with 12 new Rudy’s and one new Albert’s Schloss currently in legals.” Josh Rose at Matter.London acts for Mission Mars in London.

Chipotle lines up Uxbridge opening as it plans ‘additional stores for London metropolitan area’: US brand Chipotle has lined up a new opening in Uxbridge, as it said it plans additional stores “for the London metropolitan area in early 2024”. Propel understands that the business, which currently operates 18 sites in the UK – 16 in London plus one each in Watford and Guildford – has lined up an opening on Uxbridge’s High Street in a former retail unit adjacent to Pret A Manger. It opened its most recent UK site, in the former Santander bank building in Putney High Street, last November. It said at the time that expansion in London remains a “top priority for our international strategy”. The previous month, Chipotle reported turnover for its UK business climbed to £17.9m for the year to 31 December 2022 (£11.1m). It comes as the business announced the launch of a menu of “lifestyle bowls” across its UK restaurant estate, which were previously only available on Chipotle’s digital menu for pre-order, delivery and pick-up. Chipotle features in the Propel Turnover & Profits Blue Book. Its turnover of £17,910,338 for the year ending 31 December 2022 is the 416th 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.

Sweden-based Mexican fast-food franchise to make UK regional debut and open first Irish restaurant in 2024: Sweden-based Mexican fast-food franchise chain Zócalo is set to make its UK regional debut and open its first Irish restaurant in 2024. Zócalo, which was founded in 2002 and has since grown to 25 restaurants in Sweden, Denmark and Iceland, opened its first UK site in September. Master franchisees Pritesh and Shivum Amlanu partnered with chef Andre Martin and former Premier League footballer Jose Fonte to open at 21 Great Windmill Street in London’s Soho. “In 2024 there are a lot of things happening,” said Zócalo chief executive, Einar Örn Einarsson. “We will open our first restaurant in Ireland, in the city of Cork, in the first weeks of January and hopefully follow that up with at least one restaurant outside of London in the coming months. We have so many people who are interested in opening Zócalo restaurants in the UK, so hopefully our master franchisees can get a couple of deals across the finish line.” Looking back at an “incredibly difficult, but in a lot of ways, transforming year,” Einarsson said his franchisees opened one new Swedish and two new Danish restaurants in 2023. He added: “We also opened our first restaurant outside Scandinavia in Soho, in London. A fantastic location in a vibrant part of this great city.”

Boparan Restaurant Group invests in Midlands-based country pub: Boparan Restaurant Group (BRG), the owner of the Gourmet Burger Kitchen, Carluccio’s and Giraffe brands, has invested in a Midlands-based country pub, Propel has learned. The company, which is also the master franchisee for the Slim Chickens brand in the UK, has acquired control of Lapworth Leisure, operator of the The Punchbowl in Lapworth, near Solihull. The site comprises a restaurant, bar and 11 bedrooms. It is currently unclear whether the new investment constitutes a one off or a first acquisition under a new venture. BRG has been focusing on the roll out of the Slim Chickens brand and currently operates circa 40 sites under the concept in the UK, including under its The Restaurant Hubs format with Sainsbury’s.

Roasting Plant Coffee opens sixth UK site: US coffee shop concept Roasting Plant Coffee, which last year secured $7m (£5.7m) of new funding, has opened its sixth site in the UK. It has opened in the ex-Starbucks site in Gracechurch Street, in the City of London. The business is also understood to be close to securing a further site in the capital’s West End. The company told Propel that the new site was “off to a cracking start”. At the end of last year, the business, which operates 14 sites in total, made its debut in Washington DC, with an opening in Dupont Circle (1211 Connecticut Avenue NW). It will open a further site in the US capital, just a few blocks away (1901 L Street NW) next month, with more openings planned in the city over the coming 12 months. The company said the new funding would help in part with its goal of opening 345 new sites over the next five years in the UK and US. Propel understands the investment was secured from Roasting Plant Coffee’s existing investor base, such as former Marks & Spencer chairman Lord Stuart Rose, and from new backers, including several high-net-worth individuals from New Zealand.

Ottolenghi Group appoints Ella de Beer as new chief people officer: London restaurant and deli operator Ottolenghi has further strengthened its management team with the appointment of Ella de Beer as its new chief people officer, Propel has learned. De Beer joins Ottolenghi after almost two years as head of people at MJMK, the Casa do Frango operator. Previous to that, she ran her own operations consultancy. She has also had stints as people and operations director at Sourced Market and people and operations director at Cirrus Inns. Last month, Propel reported that Ottolenghi was planning a further opening in the capital, in Richmond. The business recently opened its sixth deli and eighth location overall, in the former Carluccio’s unit at 32-34 Rosslyn Hill in Hampstead. Founder Yotam Ottolenghi also last year said he wants to expand internationally with an opening in Paris being planned.

Rarebreed Dining closes Reading site as it looks to expand: Restaurant company Rarebreed Dining has closed its The Corn Stores site in Reading, Berkshire, as it looks to expand. The company launched the flagship site in Forbury Road in 2018 to join its sister sites The Shurlock Inn, also in Reading, and The Plough Inn in Cobham, Surrey. These were joined by Waverley Inn in Weybridge, Surrey, in 2019. Jonnie and Sarahjayne Matthew, who launched Rarebreed with Jordan Hallows in 2014, have now taken the decision to close The Corn Stores. In a message to guests seen by Propel, they said: “With a heavy heart, we have decided to close The Corn Stores. It has been an honour and privilege to restore The Corn Stores to its former glory and act as custodians for the last few years, but sadly, we have made the difficult decision to shut its doors. The move comes as we grow the business and continue to define Rarebreed as a collection of restaurants. Our other locations will remain open and will be part of our journey as we expand in other areas and acquire more sites. We would like to thank you for your continued support and for helping to make the restaurant and Rarebreed Dining what it is today. All open bookings will be contacted.”

Manchester operators close Asian-inspired restaurant to make way for new concept: Manchester operators Nick and Hayley Muir, who are also behind the Edinburgh Castle pub in Ancoats, have closed their Asian-inspired in the city’s Northern Quarter (NQ), Cottonopolis, to make way for new concept. Cottonopolis initially launched in the grade II-listed building at 16 Newton Street building in November 2015, serving Japanese food and cocktails. But the founders said they made the decision to close “on a high” after a busy festive period and that plans are underway to launch a new brand there in the coming months. Nick Muir said: “We believe we’ve reached the end of our journey in its current guise. It’s been great, but we want to do something just as fresh, like when it first came onto the NQ scene. It feels like the right time to bring an exciting new concept. We’ve been hard at work behind the scenes to develop our next adventure, which will bring a new quality place to eat and drink to the NQ, with the same exceptional standards we’ve become known for at Edinburgh Castle. We’d like to thank all of our guests for their loyalty over the last eight years, and we’re looking forward to sharing the next part of our journey with you.” Edinburgh Castle recently became the first Manchester city centre venue to make it into the shortlist for the Estrella Damn Top 50 Gastropubs.

Yorkshire hotel company extends £18m loan to help fund new acquisitions by three years: Yorkshire-based EC4 Hotel, which operates four 100-plus bedroom hotels in the region, has extended an £18m loan to help fund new acquisitions by three years. The initial five-year loan was entered into in 2017 and was first extended in 2020, from a termination date of October 2022 to November 2023. It has now been extended once more, to 1 November 2026, according to a post year-end report in the company’s accounts for the year to 31 March 2023. It comes as the company reported its pre-tax profit rose from £70,839 in 2022 to £278,907 during the period. Turnover was up from £12,487,751 in 2022 to £15,118,082. No government grants were received (2022: £262,712) and no dividends were paid (2022: nil).

New neighbourhood Mediterranean restaurant and bar to open in Marylebone: Bellazul, a new Mediterranean restaurant and bar, is to open at the start of next month, on Marylebone’s Blandford Street. The new venture is described as “a laid-back neighbourhood restaurant and bar, designed to transport diners to the sun-kissed shores of the Mediterranean”. The new restaurant will be overseen by head chef Simone Serafini, previously head chef of Cecconi’s, Cacciari’s and Mayfair’s exclusive private members club, 5 Hertford Street. Serafini said: “Bellazul was born from a desire to create the perfect neighbourhood spot in Marylebone, whether that’s gathering with friends and colleagues after work or a lazy weekend meal with loved ones. We wanted to create somewhere that brings people together over delicious food and ensure every visit is memorable and unique.”

Just Eat for Business partners with social enterprise for barista training scheme: Just Eat for Business, the flexible workplace food solutions company, has partnered with social enterprise Bloom Coffee Academy for a barista training scheme. It will help fund four vulnerable adults – including those who are long-term unemployed, experiencing homelessness or with learning difficulties – to train as skilled baristas, providing them with a qualification and supporting them to find full-time employment. Matt Ephgrave, managing director at Just Eat for Business, said: “Our mission is to make people’s working lives better, whether that’s providing office workers with lunches or presenting opportunities for individuals to get into the catering industry themselves. It’s our aim that this partnership with Bloom Coffee Academy will help equip future workers with the tools to further their careers and we look forward to seeing them excel.”

Brazilian steakhouse brand plans May opening for Sunderland site: Brazilian steakhouse brand Rio co-owner Rodrigo Grassi has said he is aiming to open a new site in Sunderland in May. Founded in 2019, there are Rio locations in Jesmond, Newcastle, Durham, Middlesbrough, Warrington, Chester and York, with the brand also lining up its Scottish debut, in Edinburgh. The Sunderland site will see Rio take over the former Halo bar and restaurant on Low Row in the city centre, with work underway on a £450,000 fit-out which will create 45 new jobs. “We are looking forward to taking the new site in Sunderland, having been searching for a suitable place for a while,” Grassi told Insider Media. “Almost every venue we have launched has secured the top spot on TripAdvisor in just four weeks, which is an amazing achievement.” Grassi told Propel in September that he is in negotiations to open more Rio sites, with plans to roll out at least another four in 2024. He co-owns Rio Brazilian Steakhouse with Howard Eggleston, who is also behind the 11-strong Tomahawk Steakhouse brand.

Kent hotel operator reports record turnover despite ‘difficult’ trading conditions: Kent hotel operator Leaf Hotels has reported turnover increased to a record £7,047,405 for the year ending 31 March 2023 compared with £4,985,914 the previous year despite “difficult” trading conditions”. The business, which operates three sites – Holiday Inn Express Canterbury, Best Western Clifton Hotel in Folkestone and the Holiday Inn Dover – saw pre-tax profit fall to £967,957 from £991,499 due to the higher rate of inflation and the “unprecedented” level of bank interest. The business did not receive any government grants (2022: £211,189).

Kerb lets four traders worth £5m in annual sales go to make space for four new independent businesses: Street food collective Kerb has let four traders worth £5m in annual sales go to make space for four new independent businesses at its flagship food hall in London’s Seven Dials. Exiting the venue this month are Truffle, Club Mexicana, El Pollote and Curry on Naanstop, which between them generated a combined monthly revenue of more than £465,000, and which now own nine bricks and mortar sites. Truffle now has five sites across the capital and Club Mexicana three, while El Pollote opened its first site in summer 2023. Tom Bickers, who founded Truffle in 2018, said: “The Kerb inKERBator programme was integral in Truffle’s success and it was a big leap of faith from Kerb to put us on the programme. Seven Dials Market has been the springboard needed for us to continue growing, and leaving will allow us to focus on our full-service restaurants, innovate and develop our menus further and grow the business to its full potential.” The four slots will be filled by four new independent, owner-operated businesses, including Lucky’s Hot Chicken, which most recently held a two-year residency in The Understudy at the National Theatre. Joining them will be Colombian tacos concept Los Gordos, better burger brand Motherflipper and Indian kati wraps concept Kolkati. To date, 111 independent food operators have come through Kerb’s inKERBator programme, with just under a third going on to open their own restaurants.

SSP Canada opens four new restaurants at Ottawa International airport: SSP Canada, a division of SSP Group, the operator of food and beverage outlets in travel locations worldwide, has opened four new restaurants at Ottawa International airport. They include Bridgehead Coffee, which operates coffeehouses across Ottawa, and another brand from the Canadian capital, Italian grocer La Bottega. Also opening there are Bento Sushi, which has grown to become Canada’s largest sushi company, and another local favourite, Big Rig Kitchen and Brewery. The openings mean SSP now operates in nine Canadian airports. Vice president of business development Bob Stanton said: “It’s been years in the making, but we are truly delighted to offer our passengers more choice, local treasures and SSP Canada’s signature ‘taste of place’.”

Kent-based Costa franchisee grows Moroccan business: Kent-based Costa franchisee Goldex Investments has grown its business in Morocco by opening a sixth site in the country, with a seventh to follow soon. The business become the first UK-based Costa franchise to develop the brand overseas in 2022 with an opening in Marrakesh, which it followed with openings in Casablanca and Bouskoura. In July, Propel revealed that Goldex had agreed leases for Costa sites at three of the busiest train stations in Morocco, making its travel hub debut in the country with an opening in Casablanca in November. It has now opened the first Costa in Rabat, at Ryad Square, and will shortly open a second location in the town, at the Ragat Agdal train station. A further railway station location will also open in Tanjiers in the coming months. Goldex, which was founded in 2005, operates circa 46 Costa sites in the UK and is also the UK master franchisor for Kaspa’s, which it is also in the process of taking to Morocco.

Former head of M&S in Northern Ireland becomes country’s first female McDonald’s franchisee: The former head of Marks & Spencer in Northern Ireland has become the country’s first female McDonald's franchisee. Mother of two Nicola Finlay, from Co Antrim, is the new owner of the fast-food outlet based in Dungannon, which currently employs 118 people. Her appointment brings to the total of McDonald’s franchisees in Northern Ireland to eight, reports the Belfast Telegraph. “McDonald’s global success is absolutely fantastic, that's what drew me in,” she said. “I want great results and to keep growing while doing right by customers. My ambition is to have many McDonald’s restaurants, not just one. I liked the idea of owning my own business but under the world’s number one global company. Since March, I’ve been on an intense, immersive training programme, which has involved working in other restaurants to gain experience in each and every role involved in the day-to-day running of a restaurant.” After gaining a degree in maths, statistics and computer programming from Ulster University, Finlay joined a graduate programme with Tesco, and within a year was managing her own Tesco store. She subsequently moved to M&S, where she oversaw more than 20 stores in the country.

Star Pubs & Bars launches £240,000 events programme to support its licensees: Heineken-owned Star Pubs & Bars has launched a £240,000 events programme to support its licensees by attracting more customers during the cost-of-living crisis. This includes promotional kits for St Patrick’s Day, Valentine’s Day, Mother’s Day, Father’s Day, Hallowe’en and Easter as well as international rugby and football tournaments. The kits are designed to drive bookings in advance and, where possible, extend events over several days. Cathy Olver, Star Pubs & Bars’ retail director, said: “People want to treat themselves and, with less money to spare, are looking for an excuse to do so. They are seeking out memorable experiences to get value from their spend and are increasingly planning their socialising rather than being spontaneous. Calendar events are a great way for pubs to tap into these trends and boost sales, and our free promotional support has been created to maximise the opportunities.”

Active Hospitality narrows losses as turnover exceeds pre-covid levels to hit record £5m: Hotel operator Active Hospitality, which operates four sites, has reported turnover increased to a record £4,969,822 for the year ending 31 December 2022 compared with £3,141,340. Revenue also exceeded the £4,105,423 for the year ending 31 December 2019 – the last full year before the pandemic. Pre-tax losses narrowed to £463,038 from £1,097,641 the previous year (2019: loss of £317,381). In their report accompanying the accounts, the directors stated: “A rolling refurbishment of the mansion house and lodge bedrooms at Gorse Hill Hotel in Woking will be undertaken in 2025, and during 2024, planning permission will be sought for an additional 20 bedrooms.” The company received government grants of (2021: £379,953). No dividend was paid (2021: nil). Active Hospitality also operates Villiers Hotel in Buckingham, Easthampstead Park in Wokingham and Ditton Manor on the outskirts of Slough.

The O2 Entertainment District reports lfl sales up 34%: London’s The O2 Centre has reported like for like sales were up 34% in its Entertainment District in 2023. It achieved month-on-month growth including a standout December, with sales up 28% versus December 2022 and 82% versus December 2019. The 2023 results were driven by the openings of a JD Wetherspoon’s pub ‘The Stargazer’, new Afrikana and Chipotle restaurants and a London debut for leisure operator iFLY Indoor Skydiving. This will be followed in 2024 by a further London debut, a 13,000 square-foot Padel Social Club. Janine Constantin-Russell, managing director at the Entertainment District at The O2, said: “I’m extremely proud of the team here at The O2 and everything that we have achieved in 2023. As we look ahead to 2024, we remain committed to contributing to London’s wider retail, leisure and entertainment scene.”