Prezzo plans chain of takeaway pasta shops in train stations, ‘casual dining brands no longer work in some parts of the country’: Prezzo, the Cain International-backed Italian dining group, is preparing to open its own chain of takeaway pasta shops in train stations, as casual restaurant chains come under pressure. Dean Challenger, chief executive at Prezzo, told The Telegraph that the Italian chain was in the “early stages” of planning a new line of fast food branches, breaking away from the business’s traditional sit-down dining model. “Train stations have options like Upper Crust, KFC, Burger King, but there’s nothing available at a slight level above these. I think there’s a gap there,” said Challenger. The new Prezzo “Pronto” chain would offer “takeaway pasta, takeaway pizza slices – the things that are common in the US,” he said. “We’ve got a model that works because pasta and pizza are relatively quick.” It comes as Prezzo and other casual dining chains come under pressure from inflation pushing up costs and the cost-of-living crisis leading to a slump in visits. Prezzo shut 46 branches last April in a formal process to save the business from administration that resulted in more than 700 redundancies. “The main sites we lost through that process were the smaller market towns, where ultimately, the model doesn’t really work,” Challenger said. At its peak, Prezzo had 300 branches across Britain but has only 96 today. Challenger believes that could expand to around 120 but that the business will never return to the size it was in the middle of the last decade. He said casual dining chains like his no longer work in some parts of the country, such as small towns and more rural locations, because of high costs and soaring taxes. “If you work through business rates, inflation, national minimum wage and food inflation, small market towns, which have smaller average weekly sales, just become unviable,” he added. Instead, he believes casual dining brands such as Prezzo must focus on retail parks and other high-traffic areas where restaurants are a “second destination” for people who are out shopping or going to the theatre. “Any new sites that we look at will be in high footfall areas where people are looking for a brand they know,” he said. “Shopping centres normally prefer to use chains because of the brand recognition – there’s less risk – and there will always be a space for casual dining brands wherever there’s tourists.” As well as the new Prezzo Pronto outlets, the business is planning to launch a brunch menu in its restaurants to help make them busier during times of day that are usually quiet. Brunch could include dishes such as “an Italian take on a breakfast”, as well as panettone.

Flat Iron CEO – room for at least 30 more sites in London, weekly sales hit £1m: Tom Byng, chief executive of Flat Iron, the Piper-backed affordable steak concept, has told The Times that the business is targeting four to five new restaurants a year, and believes there is room for at least 30 more sites in London. It comes as the 14-strong business reported a record year of sales for the year ended 27 August 2023 in accounts soon to be filed at Companies House. Full-year sales were £35.9m, up £12.4m (52.9%) on the previous year. Adjusted Ebitda was £3.8m (2022: £3.5m). It said that a significant proportion of growth was driven by existing restaurants and supported by three new openings during the financial year in Westfield London, Kensington and the brand’s first restaurant outside of London, in Cambridge. The company said all three new sites have traded “well ahead of expectations”. Since the year end, a further restaurant was opened in Leeds, which the business said is also trading “very strongly”. In December, the brand achieved a landmark £1m in weekly sales. As previously revealed by Propel, Flat Iron’s confirmed pipeline for 2024 includes openings in Hammersmith, Manchester and Victoria, with further sites under consideration for 2024 and 2025. Byng said: “Flat Iron made excellent progress in 2023. The key to our success has been a relentless focus on executing our proposition of ‘remarkable steak for all’, with its combination of great quality food, service and value, delivered by our amazing restaurant teams. We’re committed to measured growth in the coming years and feel there’s plenty of opportunity for new Flat Iron restaurants in both London and beyond. Despite the well-known challenges facing the wider sector, we’re optimistic and excited about the future.”

 

Esquires owner reports UK sales up 18.6% in 2023 and sees record December: Cooks Coffee, the Esquires-brand owner, has reported UK store sales were up 18.6% to £17.5m in 2023 (2022: £14.7m). Group store sales were up 15.8% to £26.9m (2022: £23.2m). In Ireland, store sales increased 11.0%, totalling £9.4m (2022: £8.5m). Like-for-like sales in the UK for 2023 were up 6.0% and in Ireland up 6.8% while the sales from the new stores opened during 2023 accounted for 12.3% of total sales in the UK and 13.4% in Ireland in 2023. Esquires achieved weekly store sales of £600,000 for the first time across the UK and Ireland in December 2023 – a record month for the group. The company had 71 sites in the UK and Ireland as at 31 December 2023, up from 62 as at 1 January 2023 with the short-term pipeline being “strong” with six to eight outlets expected to open in the first quarter of 2024. The company stated: “The company has prioritised boosting sales within its existing locations and has also pursued a store expansion initiative. During the year, Cooks Coffee opened 12 stores in the UK and closed five, whilst in Ireland three stores opened and one closed. Throughout the year, momentum steadily increased, reaching a new record in the week prior to Christmas. The company is benefiting from positive operating cash flow compared to an operating cash outflow in the same period last year, which reaffirms the positive direction of travel for the company.” Chairman Keith Jackson said: “We are delighted with the robust sales growth within our current coffee store locations as we simultaneously progress our expansion programme, opening new stores. December has been a record-breaking month for us and this success reflects the dedication of our extended team of shareholders, directors, franchisees, regional developers and company staff and the overwhelming support from our valued customers. We remain committed to delivering exceptional experiences and setting new benchmarks in the months ahead through our dedicated team of local franchise store owners. We look forward to updating the market further in due course.” The company reported calendar year results, although its financial year end is 31 March.

 

Drake & Morgan reports record festive trading with like-for-likes up 31.7%: Drake & Morgan, the operator of 17 premium bars and restaurants in London and Manchester, has reported record festive trading with like-for-like sales up 31.7% against the same period in 2022. Chief executive and founder Jillian MacLean said: “After several years of disruption, we were finally able to deliver an uninterrupted festive season, which is reflected in these excellent results. We are incredibly proud of the team whose hard work delivered not only exceptional trading, but a fantastic experience for all our guests. These results are hugely encouraging for 2024 and we are optimistic for the year ahead.” Last month, Drake & Morgan said it has seen robust trading in its current financial year with new immersive weekend events driving sales. Ongoing investment in terraces has supported revenue post-summer, with igloos installed at The Sipping Room and a revamped outside bar at The Parlour, both in Canary Wharf. It comes as the business reported turnover increased to £43.3m for the 52 weeks ending 26 March 2023 compared with £35.9m last year. Adjusted Ebitda profit was £4.1m (2022: £5.0m), mainly due to the impact of rail strikes. The business successfully exited its company voluntary arrangement in June and has extended its banking facilities until December 2025.

 

Archie’s confirms move into leisure market with new roller-skating concept: North west burger, shakes and waffles concept Archie’s has confirmed it is moving into the leisure market with the opening of a new roller-skating concept in Manchester. As reported by Propel earlier this month, Archie’s will open the next-generation experience centre, Archie’s Atomic, at Trafford Palazzo. The 24,273 square-foot concept will feature the Manchester-born brand’s food and décor centred around a roller rink spanning more than 5,380 square foot after the company agreed a deal with landlord Peel. Since opening its first restaurant in Manchester’s Oxford Road in 2010, Archie’s now has sites across Manchester, Birmingham, and Liverpool, including the recent opening as part of the UK’s first Nerf Action Xperience site, also at Trafford Palazzo. Archie’s Atomic is due to open this summer 2024 within Trafford Palazzo on the ground floor, in the former Next Home premises, consisting of a roller rink, a family arcade area, and an Archie’s shake bar. Mohammed Amer Rafiq, managing director at Archie’s, said: “Introducing an Archie’s branded leisure concept has been in the works for a while now, and deciding on a location was a vital part of the process of bringing it to life. At Trafford Palazzo, we have a ready-made destination catered perfectly towards experience-led retail and leisure. The new concept will have all the excellent food, drinks, and décor you would expect from any of our Archie’s sites, but with exciting activities for all the family to explore. It’s a hugely exciting year for Archie’s, with the expansion into London and internationally in the Middle East.” The company said last year that it was eyeing a number of sites in London and across the UK in what is set to be a multimillion-pound rollout.