Exclusive – US owners of Applebee’s and IHOP brands looking to bring dual branded restaurant concept to UK: The US owners of neighbourhood bar and grill and pancake house chains, Applebee’s and IHOP, are looking to bring their dual branded restaurant concept to the UK, Propel has learned. Dine Brands International is looking to bring both brands over here and is seeking area developers or master franchisees. It will next month showcase its offer at the British & International Franchise Exhibition in London's Olympia, in a bid to attract potential partners. “Building on the success of its dual branded restaurants in Canada (Niagara Falls), the UAE (Dubai) and Kuwait, the exhibition marks an exciting opportunity for Dine Brands to showcase its innovative dual branded Applebee's and IHOP restaurant concept – which leverages its iconic brands to provide guests two unique dining experiences under one roof – to potential area developers and/or master franchisees for the UK market," said Enrique Kaufer, vice president of international franchise development at parent company, Dine Brands Global. “We are thrilled to participate in the exhibition and share our dual branded concept, which has seen great success since our launch in other markets. This event provides an excellent platform for us to connect with potential partners who share our passion for hospitality and are eager to be part of our growth journey.” Other markets it is targeting include the Middle East, North America, Latin America, and the Caribbean. Based in Pasadena, California, Dine Brands Global operates more than 3,500 restaurants across 18 international markets. It is one of the largest full-service restaurant companies in the world and expanded into the fast casual segment in 2022. Applebee’s was founded in California in 1980 and has more than 1,700 outlets. It was bought by IHOP Corp in 2007, which upon the acquisition was renamed DineEquity, which in turn became Dine Brands Global in 2018. IHOP was founded in California in 1958 and has more than 1,800 locations. The first hybrid Applebee’s/IHOP restaurant opened in Detroit in 2018. 

 

Propel’s latest Multi-Site Database to be released on Friday with seven category segmentation: The next Propel Multi-Site Database, produced in association with Virgate, providing details of more than 3,000 multi-site operators, will be released on Friday (26 January) at midday to Premium members – and companies will now be searchable in seven main segments. The seven segments are: pubs and bars, cafe bakery, quick service restaurants, casual dining, fine dining, hotel and experiential leisure. The database features, for example, 755 operators in the pubs and bars segment. It is updated each month – this edition includes 20 new companies and brings the total to 3,050. Premium members also receive access to five other databases: the Turnover & Profits Blue Book, the New Openings Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who’s Who of UK Food & Beverage. Propel is evolving its Premium subscription offer by launching Premium Club on Thursday, 1 February. All circa 4,000 existing subscribers automatically become members. The launch of Premium Club comes with even more benefits. All subscribers will be offered a 20% discount on tickets to four Propel paid-for events – The Excellence in Pub Retailing Conference (14 May), Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators will also be able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Propel Premium subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. 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. Email kai.kirkman@propelinfo.com today to sign up.

 

More than 500 pubs close in 2023 as sector calls on chancellor for action in Budget: The UK’s pub sector lost more than 500 pubs last year (509), equating to over 6,000 jobs, according to new research by the British Beer and Pub Association (BBPA), as it called on the chancellor for more assistance in the upcoming spring Budget. The BBPA said the UK had 60,100 pubs in 2002 and has 45,300 in 2024, representing a roughly 25% decline. It said closures in 2023 were notably higher, proportionally, in Wales and Scotland, with both having roughly double the closure rate of England. At the same time, closures in 2023 were higher than in both 2020 and 2021, the height of the pandemic’s impact on trading. The BBPA said: “The closure of 509 pubs equates to over 6,000 jobs lost at these pubs alone. This will have a major knock-on effect to the lives of those affected. What’s more, a pub is often the local economic force multiplier. If a local high street loses its pub, it loses the key anchor business which attracts footfall and which support the other neighbouring businesses. The decline in our local high streets is thus, in no small measure, connected to the decline in pub numbers, with over 3,000 lost in the last six years: 2017 – 48,349 pubs versus 2023 – 45,306 pubs. This shows the UK has lost 3,043 pubs in the last six years. This trend is not a recent one either, with around a quarter of all pubs having closed since 2002.” Emma McClarkin, chief executive of the BBPA, added: “At the last autumn statement, the chancellor provided a number of measures to support the beer and pub sector, but now is the time to stop the rot, and at this Budget, we need to set a path to secure the long term sustainability for brewers and pubs with a cut to beer duty, a cap to the business rates multiplier and a reduction to the VAT applied for hospitality venues.”

 

CosMc’s generates more than double the number of visits of a typical McDonald’s: CosMc’s, the new, small-format, beverage-led restaurant concept from McDonald’s, saw more than double the number of visits that a typical McDonald’s location saw chainwide during December, despite not being open for the full month. The first CosMc’s location, which opened on 7 December, is located in Bolingbrook, Illinois, and is part of a limited test run. By the end of 2024, McDonald’s plans to open approximately ten CosMc’s pilot locations, including sites in the Dallas-Fort Worth and San Antonio metro areas of Texas. Data from foot traffic analytics platform Placer.ai indicated that CosMc’s saw more than double the number of visits that a typical McDonald’s location saw chainwide during December, despite not being open for the full month. The location saw triple the number of visits per square foot. “However, it’s also worth noting that CosMc’s visitation numbers would likely have been much higher if the location had additional capacity to satisfy the overwhelming demand,” said Placer.ai.

 

Sunak’s migration clampdown risks shortage of hospitality workers: Since Brexit made it harder for Europeans to work in the UK, British pubs and restaurants have come to rely on labour from further-flung parts of the world, but Rishi Sunak’s planned crackdown on migration is threatening to stifle that supply, reports Bloomberg. Arrivals to the UK from countries such as Nigeria, India and China have risen sharply, more than offsetting the number of departing EU citizens and pushing overall levels of net migration to an all-time high. “As there are less Europeans, we are seeing more rest-of-the-world people come in,” said Alasdair Murdoch, chief executive of Burger King UK. “A lot of Europeans went home during covid, and they didn’t come back.” Prime minister Sunak is gambling on the a controversial plan to send asylum seekers to Rwanda while stamping down on economic migration, with new limits on students and the families of people who are granted work visas, to avoid a political storm over record migration. Yet these are the groups who often fill hospitality jobs, as it is difficult to get a visa to work in a bar or eatery. “We tend to employ more people doing fewer hours,” said Murdoch. He explained that many of his staff from outside Europe are students and so are well-suited to these jobs. “There will be a shift to more part-time workers.” Proposed changes to the migration system “will reduce the pool of migrant labour that businesses can hire,” said Ben Brindle, a researcher at the Migration Observatory at the University of Oxford. In early December, Sunak vowed to increase the minimum salary needed to secure a skilled work visa by a third, to £38,700, well above the average pay of most hospitality workers. “Migration isn’t the only way to fill vacancies, so what happens will depend on how businesses respond,” Brindle said. “In theory, they could improve pay to attract domestic workers or automate production, but in some cases, these options won’t be feasible.”

 

LNER train drivers to strike for five more days: Train drivers' union Aslef has announced five consecutive days of strikes on LNER services in addition to wider industrial action. Strikes on LNER, which operates on the East Coast Mainline, will begin on 5 February. Train drivers for many rail operators are already striking between 30 January and 5 February in a long-running row over pay and conditions. That period of strikes will see LNER drivers walking out on 2 February. The BBC reports that Aslef called the further strikes in response to LNER informing the union that it would be implementing minimum service levels (MSL) on that day. An LNER spokesperson said: “The MSL legislation is a new tool that has become available to us and we are exploring its use. Our priority focus remains on minimising disruption to customers during Aslef strikes, which sadly, will continue to cause disruption and delays.”

 

Landlords welcome MP’s bid for easier pub opening extensions for sporting events: Landlords have welcomed a new bid to make it easier to extend pub opening hours for occasions of national importance, like major sporting events. The Mirror reports that it comes after licensees and councils faced an “admin nightmare” when England reached the Women’s World Cup final this summer. Currently, when parliament is in recess, pubs have to apply for license extensions individually, wasting time and causing unnecessary paperwork for landlords and councils. But a new bill, proposed by Labour MP Emma Lewell-Buck, would grant the home secretary the power to issue blanket extensions. Victoria Mavin, who runs the Bellringer in Stoke, said her business was “hugely impacted” when the Lionesses went through to the final because there wasn’t time to apply for an extension. “We lost out on revenue,” she said. “Pubs need every penny they can get with the state of the industry right now. We couldn’t open until the time the match started, and it meant huge losses for us. It could easily have been another few hundred pounds in our till.” She welcomed the move, which has government backing and is likely to sail through is remaining parliamentary stage, but said it has been too long coming.

 

Scottish government considers tourist tax based on cost of visitors’ rooms: SNP ministers are actively considering overhauling their flagship visitor levy legislation by switching a proposed percentage charge to a council tax-style banding or tiered system, the Herald on Sunday reports. The tourist tax, first touted by the Scottish government in 2019 before being paused during the pandemic, passed its first legislative hurdle at Holyrood this week – with a majority of MSPs backing the principles of the policy. The visitor levy would apply to those staying in hotels, hostels, bed and breakfast, self-catering accommodation, campsites and caravan parks. Kate Nicholls, chief executive of UKHospitality, said: “Wrong policy at the wrong time and implemented in the wrong way – a tourist tax makes us uncompetitive when we are already the most highly taxed destination.”

 

Job of the day: COREcruitment is working with a hospitality group that has more than 250 sites across the UK that is seeking an interim food buyer. A COREcruitment spokesperson said: “Reporting to the procurement manager, you will be responsible for the entire food category function; maintaining and nurturing relationships with existing suppliers while seeking opportunities with new suppliers to enhance the business position across all buying categories. This is an immediate requirement and a six-month full-time contract. However, there will be the opportunity to make this permanent for the right person.” The salary is up to £55,000 and the position can be hybrid, with two days a week in London. For more information, email mikey@corecruitment.com. 

 

Patty & Bun founder – We are now in a stabler and stronger position, open to exploring franchising in the UK: Joe Grossmann, founder of Patty & Bun, which underwent a restructure last year, has told Propel the business is in a “stabler and stronger position” and is looking at future growth opportunities, which could include franchising in the UK. The business underwent a Company Voluntary Arrangement (CVA) last summer and now operates eight restaurants, plus three concessions. Grossmann said: “The last few months have been incredibly strong. We had our strongest December ever as a company, with the central London spots performing especially well. Kingly Street had a record month, illustrating how strong tourism and general footfall was in the Carnaby area. We made a number of changes through the CVA process. Most notably, we closed White City, a site that unfortunately hadn’t recovered post-covid. Old Compton Street we parted ways with as well as the landlord looked to seek a higher rent. Alongside this, we were able to remove some of the historic covid liabilities and essentially draw a line in the sand to really progress the business. The past couple of years have seen a period of transition for the brand and it’s great to now be in a stable position where we’re not only operating to a high level with strong site like-for-like sales, but equally, looking for future growth opportunities. We’re now in a much stabler and stronger position.” In terms of future expansion, Grossmann said: “Recently, we’ve launched another concession in Lanes 7’s flagship launch in Victoria that’s been great, building on our existing concessions experience with Swingers. The imminent launch of our first international franchise in Dubai with our partner there is incredibly exciting. It’s something we’ve been working on for a while now and we couldn’t be happier with our partner, BlackSpoon, who have extensive experience and success in operating within Dubai. In terms of domestic growth, for now, we’re just focusing on continuing to build and strengthen the existing estate. However, as the year progresses, we’ll look to see any opportunities that fit with the brand remit. The original aim of Patty was to build it into a true international brand. It’s early days, and at this point, we’re just taking it step by step. Our goal with our partner is to make sure we execute the Patty experience to its fullest and build the love of the brand the same way we did here in the UK. At this point, the focus is just making sure in the short term, we execute the above, and then after that, we’ll see.” On franchising in the UK, Grossmann said: “It’s something that we’re definitely open to exploring. Fundamentally, it’s all down to the partner. If there’s a partner who has the ability, brand alignment and passion to grow Patty in the right way, then it’s always a conversation we’re looking to have.” It comes as the business posted turnover for the year to 27 November 2022 of £10,479,861 (2021: £8,170,058), with a pre-tax loss of £2,161,801 (2021: (£53,344). Patty & Bun features in the Propel Turnover & Profits Blue Book. Its turnover of £10,479,861 for the year ending 27 November 2022 is the 584th 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.

 

Sky News – Compass in talks on £400m takeover of Kew caterer CH&Co: Compass Group, the FTSE-100 contract caterer, is in advanced talks to take over a rival business which provides hospitality services at landmark venues including Kew Gardens and the Royal Opera House. Sky News reports that Compass is this weekend putting the finishing touches to a deal worth more than £400m to acquire CH&Co, a private equity-backed company. Banking sources said that a deal could be announced as soon as this week. If confirmed, it would be Compass’s largest acquisition in the UK for years, although the transaction will not be material from a valuation perspective given its market capitalisation of over £37bn. Nevertheless, it will be significant in further cementing Compass’s presence at the premium end of the contract catering market. Based in Reading, CH&Co provides services in sectors including schools, workplaces and tourist destinations. Among the other prominent venues it counts as clients are the Royal Academy of Arts, the Southbank Centre and the Old Royal Naval College. Historic Royal Palaces, whose portfolio includes the Tower of London and Hampton Court Palace, is also on its books. CH&Co, which has held a royal warrant since 2013, has been backed by Equistone, the private equity firm, since 2019. One catering industry executive said that at a valuation of more than £400m, the exit would deliver an impressive outcome for Equistone, which has engineered a string of smaller takeovers for CH&Co during its period of ownership.

 

Pieminister retail sales up 14%, launches new filo pie range into supermarkets, closes Exeter site: Pie and mash restaurant operator Pieminister saw its retail sales grow by 14% in the year to 31 March 2023. Revenue increased slightly from £17,009,000 in 2022 to £17,181,000, driven by a rise in retail sales from £5,083,000 to £6,330,000. This offset a 4% drop in wholesale sales from £11,926,000 to £10,851,000, despite having secured new distribution for its products, which the group blamed on “limitations on consumer spending caused by financial pressures in the wider economy”. The group’s pre-tax profit fell from £887,000 in 2022 to £1,000 as “cost price inflation for ingredients, packaging, labour and energy has been relentless over the period in both our operating channels”. The company added: “While some of the cost price increases have been passed onto customers and consumers, the business has found it necessary to absorb much of the increases incurred itself to keep our products affordable and delivering great value or money. In the retail channel, the business model has been simplified and adapted to focus on the elements that have proved to be robust over the past two years, and this now forms the foundation of the franchise model.” During the year, the group re-purchased 12,461 ordinary shares from minority shareholders, resulting in a reduction in cash and cash equivalents of £1,375,000 (2022: increase of £738,000) and a net cash position of £1,098,000 (2022: £2,473,000). Cash payments, after costs, of £482,000 were made to exiting shareholders,” the company said. “The company issued loan notes on the same date for repayment of the balance due of £998,000.” The company received no government grants compared with £450,000 in 2022 but did receive an £8,000 insurance pay-out. Dividends of £520,000 were paid (2022: nil). Post year-end, the business introduced a new filo pie range into Waitrose, Ocado and Tesco and plans to “bring a completely new product range to market early in 2024”. In October 2023, Pieminister shut its site in Exeter’s Queen Street, which had been open since 2019.

 

Scottish former late-night operator aiming to grow pizza and pasta concept to estate of more than 30 after launching franchise programme: Scottish former club owner Mitch Sorbie is aiming to grow his pizza and pasta concept to an estate of more than 30 after launching a franchise programme. Sorbie used to run a string of three late night venues around Glasgow and had opened another in the Isle of Man – where he has family and was also a regular visitor for the TT – but it only lasted six months. Instead, he launched a restaurant there called Just Pizza & Pasta, which has been much more of a success and grown in covers from 86 to 120 since 2016. Sorbie launched a franchise programme in November and is currently sorting through more than 200 enquiries to see which can be taken on as franchisees. “2024 is set to be a great year,” he said. “We’re looking to open 32 restaurants over the next five years – two this year, six the next, and then eight in years three, four and five. I’ve always been surprised by the number of people asking me if the restaurant is a franchise as it’s got the look and feel of one. We’ve got a current turnover of £1.2m which we forecast will rise to £1.5m next year, and that’s in a town (Douglas) with a population of 29,000. We’ll look to expand into towns of 60-70,000 which are below the radar of the big boys. Considering where I’m based, starting in the north west would be ideal, and then expanding out further once it’s up and running, but it’ll depend on where our franchisees are after they sign up.” It won’t be the first time Sorbie has dipped his toes into the world of food and beverage franchising. Back in 1985, he approached US diner chain Denny’s about bringing the brand to the UK but said he “couldn’t come to an agreement with them”. Denny’s instead opened its first UK diner in 2018, in Swansea, after signing a franchise agreement with Magic Brands Group. A second Denny’s site opened later that same year, in Glasgow, but has since closed. Magic Brands chief executive Leon Esfahani is also behind Magic Bean Co, which operates 24 Starbucks and was the first UK franchisee to open a Starbucks drive-thru here.

 

Arkell’s borrows £4.3m to complete two acquisitions and new build, puts three ‘unviable’ pubs on the market, looking to acquire new sites funded by disposals: Swindon brewer and retailer Arkell’s borrowed £4.3m to complete two acquisitions and its first new build pub in 20 years. It has also put three “unviable” pubs on the market and said it is looking to acquire new sites but funded by disposals rather than taking on additional debt. The £4.3m loan allowed for the purchase and refurbishment of The Eliot Arms in South Cerney and land next to Ye Olde Red Lion in Chieveley, as well as completing the building of The Strawberry Thief at Tadpole Garden Village. The Eliot Arms and The Strawberry Thief were two of three sites opened during the financial year ending 31 March 2023, the other being The Launderette Bar in Swindon. Chairman James Arkell said: “We have three Swindon pubs on the market – a sad reflection of our current trade as we have owned them for many years. But they are not viable to let with overheads as they are, and a lack of customers since the pandemic. We are actively looking to acquire new sites, but they are likely to be funded by disposals rather than taking on any significant levels of additional debt. Under performing pubs will be sold or converted if it is believed that additional investment in them will not generate an appropriate return. We currently have one pub up for sale and have planning applications in progress for residential conversions of two further pubs in Swindon. These sites will be sold when planning permission is obtained.” Arkell said The Strawberry Thief has “proved hugely successful”, albeit with “sobering” £5,000 a week utility bills, and that its cocktail outlets has been “really affected” by “huge increases in tax” post year-end. Turnover for the year grew from £22,395,062 to £26,889,989. Of this, £12,125,236 came from the managed estate (2022: £9,621,431) and £11,258,045 from the tied estate (2022: £9,995,397). “Turnover in the managed houses grew by 24%, helped by the opening of The Strawberry Thief and the transfer of the Priory Inn, Tetbury, from the tenanted estate,” Arkell said. “Like-for-like sales in the managed houses increased by just over 9%. Income from the tenanted estate increased by 13% as full rents were charged for the first time in several years.” The company’s pre-tax profit fell from £3,500,038 in 2022 to £773,618 as costs rose by more than £3m, including £500,000 in borrowing costs and £1m in labour costs. Also included, in exceptional items, is a £1.5m liability relating to future pension obligations, following past changes to the scheme. During the year, its 180th anniversary, the company sold two freehold properties, making a profit on disposal of £229,318. It received no government grants compared with £423,426 in 2022. Dividends of £585,000 were paid (2022: £474,500). 

 

Merlin Entertainments appoints new CFO: Merlin Entertainments has appointed Karim Hajjar as its new chief financial officer (CFO), effective from 15 February. He succeeds Alistair Windybank, who has served as Merlin’s CFO since July 2020, following the recent announcement of his planned retirement. Hajjar will lead Merlin’s financial planning, investment strategies and the financial management of all 140 global attractions including new resorts, M&A opportunities and shareholder management. He has more than 30 years of financial experience at international companies across the energy, resources and chemicals industries, including ten years as group CFO at Belgian chemicals company, Solvay. He has also held various senior positions with Shell and Tarmac Group and started his career with Grant Thornton as a chartered accountant in London, becoming one of the firm’s youngest partners. Merlin chief executive Scott O’Neil said: “Karim is a deeply respected financial executive with a proven track-record of delivering strong and sustainable growth and innovation across complex multi-national businesses. His leadership will be pivotal to our continued global expansion and ambition of creating the greatest place in the world to work and play. I would like to thank Alistair for his outstanding contribution to Merlin over the last 15 years and wish him all the best for his well-earned retirement.” Windybank will continue to support the business to ensure a smooth handover. It comes after Merlin this month brought in Linda Zou from Boston Consulting Group as chief strategy officer following Justin Platt’s move to Marston’s.

 

Boojum co-founder joins Imbiba as operating partner: Andrew Maxwell, co-founder of Mexican food chain, Boojum, has joined serial sector investor Imbiba, as an operating partner. Maxwell has a proven track record of building and scaling restaurants over the last 15 years, including Boojum, which was acquired by the Azzurri Group last June. Earlier this year, Maxwell launched Vero, a new digital first, whole food concept, in Belfast. However, the business closed last autumn. Taking to social media, the restaurant said that it would not continue the business in its “current format” but an “exciting concept” will be coming to the Vero unit in the future. On joining Imbiba, which backs the likes of F1 Arcade, Farmer J, Vagabond, Clays and Pizza Pilgrims amongst others, Maxwell said: “I am excited about the opportunity to work with world-class brands in the existing portfolio and to continue identifying and supporting the next wave of growth and innovation in this sector.”

 

Ex-Bel & The Dragon COO acquires fourth site for hotel venture: The Signet Collection has added its fourth hotel, the Deans Place Hotel in East Sussex, which will open in December this year. The Grade-II listed four-star hotel dates back to the 14th century and, following a refurbishment, will comprise 35 individually styled bedrooms, a restaurant championing local suppliers, public lounges, a large function room and a heated outdoor swimming pool. Formed by Hector Ross, former chief operating officer of gastropub operator Bel & the Dragon, The Signet Collection portfolio also includes The Barnsdale in Rutland (launched last May), The Retreat at Elcot Park near Newbury (launched in 2022) and The Mitre in Hampton Court, London (launched in 2020). Ross, managing partner of The Signet Collection, said: “This historic property aligns perfectly with our commitment to providing our guests with a sense of fun and laid-back affordable luxury. The hotel gives us the opportunity to create an environment that pays tribute to the property’s history while creating a new and memorable experience for our guests. We look forward to relaunching the ‘new’ Deans Place Hotel in December 2024.”

 

Award-winning Liverpool venue NOSO announces new burger concept Nebul: The founders of the award-winning Liverpool-based venue NOSO have announced they plan to close the Venezuelan restaurant in the city’s Fazakerley area on 28 January to make way for a new concept at the site early next month. The new concept – named Nebula – will consist of a menu of five different burgers, each priced at £5. Each day, there will be a limited batch of 100 burgers available, which will be offered to customers on a first come first served basis, “and once they’re gone the site will close for the day”. The business said: “We want to create a local community through our burgers at a cost that is affordable to most. At Nebula, we express a lot through our food, and have good memories of sharing burgers and beers with friends. Our mission is to grow with our community and that from this site we can bring a good concept and super fresh products to the world.” The menu includes five burgers – four premium beef and one crispy chicken – and features classics as well as some more adventurous recipes including a burger topped with ketchup, pickles and Doritos. Nebula will open on 7 February.

 

Blue Orchid to open new aparthotel as it reports return to profit: Blue Orchid Hotels, which operates four sites in central London, has revealed it is opening a new aparthotel in the capital as it reported a return to profit. It comes as the company saw turnover increase to £31,688,935 for the year ending 31 December 2022 compared with £15,464,778 the previous year. The group posted a pre-tax profit of £4,520,832 compared with a loss of £12,155,128 the year before. In their report accompanying the accounts, the directors stated: “In December 2023, the group acquired The Crescent properties at Tower Hill. The group proposes to convert the building from its current use as offices to an aparthotel, subject to planning consent. The group continues to actively explore opportunities and new acquisitions to deliver on its strategic objectives in delivering sustainable growth in asset value and profitability.” The company received government grants of £48,501 (2021: £296,044). No dividend was paid (2021: nil). During the period, the company operated the Blue Orchid Rochester and Blue Orchid Wellington, both in Westminster, and Blue Orchid Tower Suites in Tower Hill. In June 2023, the company opened 32 upscale serviced apartments opposite the Tower of London, which is trading as Tower Residences by Blue Orchid Hospitality. In 2019, the group bought The Broadway Complex for £122m – the former headquarters of Transport for London at St James’s Park station in Westminster – which is being converted into a 526-bedroom hotel. 

  

Family-owned Cheshire hotel business enters administration due to ‘challenging economic environment’: Family-owned Cheshire hotel business Flat Cap Hotels has entered administration due to a “challenging economic environment” and is exploring its future options. Flat Cap was founded by brothers Oliver and Dominic Heywood, the third generation in a family line of hotel owners, in 2015. Established with the aim of safeguarding and cherishing grade II-listed venues in Cheshire, they started out with The Vicarage in Cranage before adding The Courthouse in Knutsford and The Bridge in Prestbury. But administrators from Begbies Traynor have now been appointed to the business. The Bridge and The Vicarage will continue to trade but The Courthouse has ceased trading. A spokesperson for the administrators said: “Like many others in the hospitality sector, despite having an excellent reputation and a strong brand, the business has been impacted by a combination of factors, including the pandemic, inflation and the challenging economic environment for consumers. Partners at Begbies Traynor have been appointed as joint administrators and the focus is now on stabilising the operating position of the business and exploring future options.” Oliver and Dominic Heywood are the company’s sole directors. Unabridged and unaudited accounts for the year to 29 December 2022 showed total fixed assets of £15,495,901, total current assets of £678,264, net current liabilities of £13,571,016 and total net liabilities of £341,412.

 

Wylam Brewery merges with Vaulkhard Leisure: The owners of Wylam Brewery have announced a merger with fellow north east hospitality group, Vaulkhard Leisure. Wylam Brewery said: “We are excited to today announce we are entering into a merger with Vaulkhard Leisure (VL), which will bring 14 independent north east venues into one estate. We have worked alongside Vaulkhard here in the north east for many years and share their pride in our region. The merger will see our core range scaled out across the estate, bringing super fresh beers to a plethora of new taps. This represents an exciting new chapter in our journey.” The brewery has been based within the Palace of Arts in Newcastle’s Exhibition Park since 2016, which was converted into a destination brewery and events venue by directors Dave Stone and Rob Cameron. The merger marks the expansion of a long-standing relationship between the two businesses, which saw Vaulkhard Leisure acquire the pair’s first two pub ventures – the Town Wall and the Bridge Tavern – three years ago. Last month, Vaulkhard Group said it was “going back to our core values” after a “very odd” 2023 where some of its sites experienced record takings but challenges hit the industry.