Wed 10th Jan 2024 - Honest Burgers appoints Thomas Kelly as new CEO Honest Burgers appoints Thomas Kelly as new CEO: Honest Burgers, the Active Partners-backed business, has appointed Thomas Kelly, formerly of McDonald’s and Costa Coffee, as its new chief executive to lead the 40-strong business through its “next exciting phase of growth”. Kelly started out at McDonald's as a graduate trainee, working his way to become a member of the executive board as vice-president in the UK, and then chief executive in Finland and Sweden, where he delivered seven consecutive quarters of profitable sales growth and 40% Ebitda growth in three years. More recently, Kelly has been global executive director at Costa Coffee. His appointment comes as Frank Hayes has stepped down as chief executive of Honest Burgers to “pursue other opportunities”, having navigated the business through covid and its aftermath. The business said that Hayes has helped “build strong foundations for Honest Burgers’ future growth, seeing the business deliver market-leading sales momentum over the last 18 months”. Hayes initially joined Honest Burgers’ board as a non-executive director in autumn 2020, before being appointed its chief executive in March 2021. He was previously managing director of Northgate, the commercial vehicle rental and disposal company, and former managing director of pub company Spirit Group. Tom Barton, co-founder of Honest Burgers said: “We'd like to thank Frank for everything he has done to move the business forward over the last three years. He has tirelessly set the foundations for our next chapter of growth. We're really excited about welcoming Thomas to the team – his experience in running restaurant businesses is as good as it gets, and he has delivered exceptional growth in his previous roles, which is exactly what we need to grow Honest Burgers.” Kelly added: “Ultimately, I love running restaurants – from my first McDonald's site through to being responsible for hundreds of sites in the Nordics, it's always been about the people that make incredible experiences for customers. I have always admired Honest Burgers from afar, so the opportunity to help grow such a strong brand, with the best product in the category, was too good to miss.” Spencer Skinner, managing partner at Active Partners said: “We are delighted Thomas Kelly has agreed to become the new Honest Burgers chief executive. He could have taken many different roles and his decision to join is a great testament to the strength of the Honest brand. His vision, energy and leadership skills are ideally suited to what the business needs at this stage of its journey. With Thomas at the helm, we are really excited about the potential the brand can achieve.” Last October, Honest Burgers closed its crowdfunding campaign after raising close to £3m. The business raised £2,905,631 from 3,457 investors. The campaign had a pre-money valuation of £31m, and ended offering equity of 8.57%. The company plans to use the new funding to return to the expansion trail and launch a new premium quick service smashed burger concept called Honest Smashed. In December, the business plunged into a row with HM Revenue & Customs (HMRC) after pleas for more time to pay a tax bill fell on deaf ears. Honest Burgers was faced with a winding-up petition by the taxman last week after talks to agree a “time to pay” arrangement collapsed. The business said it was shocked by the speed at which HMRC launched legal action that could have resulted in the company being liquidated. Honest Burgers paid the outstanding tax bill at the end of November. Honest Burgers features in the Propel Turnover & Profits Blue Book. Its turnover of £48m for the year ending 26 January 2023 is the 195th 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.