Propel Newsletter Archive Page

Reilley – it feels like we are only just getting started, there is so much more for us to go after: Alex Reilley, executive chairman of café bar operator Loungers, has said that it feels like the business is only just getting started and “there is so much more for us to go after”, after it opened its 250th site in total. The site – Pionero Lounge in Rochdale opens today (29 January) – and marks the latest landmark for Loungers as the group continues its accelerated site opening programme across the UK. Since Loungers’ interim results on 28 November 2023, the group has opened new Lounges in Cramlington (Coltello Lounge), Penrith (Arturo Lounge), Paignton (Costero Lounge), Caerphilly (Consurio Lounge) and Ashby-de-la-Zouch (Centivo Lounge). Further openings scheduled in the coming months include Lounges in Bromsgrove, Chepstow, Westwood Cross, Macclesfield, Bracknell, Ilkley, Sidcup and Yeovil, with sites ranging from brand new developments to former banks, retail outlets and restaurants on the high street, demonstrating the “variety and versatility” of the Lounge concept. Loungers recently stated its firm belief that there is scope for at least 600 Lounges across the UK, with the group on track to open 34 new sites in the current financial year alone. This is over and above the group’s Cosy Club and Brightside brands, which currently have 36 and three sites, respectively. With each new Lounge site, the company said nearly £1m is invested into the local high street and an average of 30 new jobs are created. In 2023, the group created 1,000 new jobs in total; it expects to recruit the same number again in 2024. Reilley, chairman and co-founder of Loungers, said: “The opening of our 250th site is a hugely satisfying landmark for a business that started in 2002 in Bristol with a single cafe-bar called The Lounge. A lot has changed since then but our commitment to providing our customers with excellent food and drink all day, while doing everything that we can to make a positive impact on the local community, has never wavered. In many ways, it feels like we are only just getting started and there is so much more for us to go after. We’re on track to open 34 sites in the current financial year, which will be a record for us and will involve the creation of over 1,000 new jobs. In the longer term, we believe there is scope for over 600 Lounges alone across the UK. None of this would be possible without the extraordinary talent, hard work and dedication of our people, and I’d like to thank each and every one of them for their contribution to building the business that Loungers is today.” Loungers recently published its first sustainability report (“The Good Stuff”), drawing together the many initiatives it has in place to support its people, customers, suppliers and the planet. In addition, the group was launched Lounge Community Kickstart in the final quarter of 2023, a pilot scheme across 26 Lounges which aims to donate over 10,000 meals back to Loungers’ communities every year.

Henry Dimbleby sets up fund to transform global food system: The co-founder of the healthy fast food chain Leon is launching a new venture capital firm that aims to transform the world’s “unsustainable” food system. The Times reports that Bramble Venture Partners, chaired by Henry Dimbleby, will support businesses that make the food system healthier or more sustainable or improve food security. Backed by a £50m fund, it will invest in those that already have customers. Funding will go to companies working “across the full spectrum of food production and consumption”, from “farm to fork”. Dimbleby, also author of the government-commissioned National Food Strategy, said Bramble should be a “catalyst for change”. “The current global food system is disastrous both for our bodies and our planet: it is the single biggest cause of deforestation, biodiversity loss, drought and fresh-water pollution, and the second-biggest cause of greenhouse gas emissions. In the UK, it is also by far the biggest cause of preventable illness and death. Things have to change – and in fact, they already are. There are fantastic new businesses springing up all over the food system, using both cutting-edge technology and old wisdom to create better ways of feeding the world. We believe there is a significant opportunity for Bramble to accelerate change by championing these pioneering companies. We want to help UK entrepreneurs deliver what politicians have not yet been able to.” Five areas will be targeted: new agriculture and fishing technologies; alternative production systems such as vertical farming (growing crops in vertical stacks); health and nutrition; monitoring and management; and other businesses such as those specialising in waste reduction. Joining Dimbleby in the venture will be Omar Habbal as managing partner and Anya Claxton as chief operating officer. Dimbleby expects to make his first investments this year in companies from Britain, the US, Europe and Israel, drawn initially from contacts. He said: “I have a vision that in ten to 15 years we will have backed some of the big companies in a new improved food system. A lot of venture capital firms have a knowledge gap about the food system, which has become unsustainable. It is a huge problem that people are just waking up to.”

The Licensed Trade Charity appoints Chris Welham as new CEO: The Licensed Trade Charity (LTC), the industry charity supporting drinks and hospitality professionals in need of emotional support, specialist advice and financial assistance, has announced that Chris Welham has been appointed its new chief executive. Welham has worked in hospitality for over 27 years and has held a variety of senior operations, executive and board-level roles in listed, private, not-for-profit, and family businesses. Currently chief customer officer at S4labour and formerly chief executive of Wadworth, he will assume the role at the beginning of March. He is also currently a non-executive director at Frederic Robinson Ltd and non-executive chair at KAM Media, and he also previously served as a board director of the Pub Governing Body. His charity experience includes time as an industry advisor to the BII where he was also a non-executive director of the BII Awarding Body. Ludovick Halik, LTC chairman, said: “I’m delighted to announce that Chris Welham will be joining the Licensed Trade Charity as its new chief executive. With his extensive experience, deep understanding of the sector and undoubted passion for the people driving every facet of the licensed trade, it’s clear Chris is the ideal custodian of this historic institution. Chris’ vision for the LTC is an inspiring one and the board is confident that under his management, the charity will continue to adapt and grow to effectively meet the needs of this ever-changing industry and the people working in it.” Welham is set to succeed current chief executive Jim Brewster, who will be retiring on April 30th, 2024, after 16 years at the LTC. Brewster will hand over the reins on the 1 March 2024 and will continue to support the organisation during the transition period. During his tenure, sector awareness of the charity has risen from 3% to 27%, and he has been a true inspiration to those who have worked under his leadership. Brewster said: “I am proud of all that we have achieved at the LTC and our three schools in my time here, and I am especially proud of the part I have played in the career development of so many of our staff. I am confident that Chris will lead our organisation into an exciting future, and I wish him and the whole team the very best for the future.” The charity has been helping individuals in need from across the licensed hospitality sector since 1793. Today, the charity assists more people than ever with practical, emotional, and financial support, in addition to running three successful independent schools. Welham said: “I have long admired the work that the charity does and am thrilled to be taking on the role of chief executive of this great organisation. The LTC has been around for over 200 years providing incredible support to people in our sector and I am very much looking forward to working with the team to continue to make a difference to people in need.”

Greene King faces pressure to pay slavery reparations: One of Britain’s biggest brewer and pub companies is under pressure to make slavery reparations to the Caribbean nation of St Kitts and Nevis. The Times reports Greene King apologised four years ago after data from University College London found that after the abolition of slavery in 1833, Benjamin Greene, its founder, received almost £500,000 in today’s money when he surrendered rights to three plantations in the West Indies. While Greene King has set out plans to become a “truly anti-racist organisation”, it is understood not to have made a financial commitment to the islands. Officials in St Kitts and Nevis are due to take part in an online meeting with a team from Greene King at the end of February. Carla Astaphan, the head of the St Kitts and Nevis reparations committee, said the committee was considering possible demands. “I have requested a meeting with St Kitts and Nevis prime minister Terrance Drew to get his input prior to the meeting with Greene King…No decision has been made on our end as to what our demand will be,” she added. In a statement yesterday, Nick Mackenzie, chief executive at Greene King, said: “It is inexcusable that one of our founders profited from slavery and argued against its abolition in the 1800s. In 2020, we took decisive action, publishing an action plan for how we can play our part in ‘calling time on racism’. Since then we have been working hard to become a truly anti-racist organisation and have invested, and continue to invest, in supporting race diversity in our business, the pubs sector and our wider communities. But we know we still have more to do on this agenda. Our focus will continue to be on listening to our teams’ priorities and acting to ensure racism and discrimination have no place within our company or broader society.” Greene King’s work has included delivering webinars on transatlantic slavery for employees working with the International Slavery Museum in Liverpool and renaming pubs that had racist connotations.

Wingstop eyes 15 new UK sites: Wingstop is aiming to open 15 new restaurants in the UK this year, with the creation of up to 750 jobs. The UK franchise of the US hospitality brand said the ambitious growth plan would represent its biggest year of expansion since launching in the country in 2018. As previously revealed by Propel, Lemon Pepper Holdings, the master franchisee of Wingstop UK, has already secured nine locations where it will open new restaurants this year. Wingstop UK will open new sites in Hounslow, Clapham High Street, Watford, Croydon Valley Retail Park, Wood Green, Lakeside Shopping Centre, Westfield Stratford City, Merry Hill Dudley, as well as a second site in Leeds. The Evening Standard reports six further unnamed sites were under negotiation, with these locations also expected to open in 2024. The company said the new quick service restaurants would cover a range of different locations, including high street shops, retail parks and shopping centres. The brand has grown to operate 39 UK sites and employs 1,600 people. Tom Grogan, co-founder of Lemon Pepper Holdings, told the newspaper: “2024 is going to be our biggest ever year of growth. We are proud to be opening across the country and creating up to 750 new jobs. In just five short years as a business, we have certainly made our mark, offering the best-tasting wings in the business alongside an authentic and customised dining experience. There is huge momentum, and we are just getting started. We can’t wait for more of the UK to try our delicious food.”

Grace Land secures eighth London pub site: Grace Land, the London-based pub group, is to open an eighth site in the capital, Propel has learned. The business has acquired the Duke of St Albans on Highgate Road. Situated at the main gate to Hampstead Heath along Parliament Hill, the pub has been trading as Swains Wine & Store in recent years. Grace Lands co-founders Andreas Akerlund and Anselm Chatwin said: “We are passionate about bringing back lost pubs and planning a family-friendly place for all to enjoy.” The group plan a major refurbishment to bring back its 150-year-old history. Saturday all-day brunches and Sunday roasts promise to be something extra special, as well as the group’s signature selected beer offer. It follows the acquisition of the London Fields Brewery acquisition from Carlsberg Marston late last year, and the launch of the Saint Monday brewery and bar. Grace Land also operates the Bethnal Green Tavern, The Kings Arms, Red Hand, The Axe, Earl of Essex, and Black Heart in Camden. Casey Phillips represented Grace Land. Rob Meadow from DCL acted on behalf of the private landlord.

Record share of businesses issue profit warnings: The share of listed UK companies warning investors that profits will miss expectations has surpassed a peak reached during the 2008 financial crisis, research shows. The Times reports some 18.2% of listed companies issued a profit warning last year, above the 17.7% peak of 2008, as higher interest rates and fragile demand weighed on corporate balance sheets, according to EY-Parthenon, the consultancy service. Delays to spending decisions were the cause of a quarter of profit warnings, with a fifth blamed on higher expenditure and borrowing costs. The data demonstrates the impact that downbeat consumer spending and higher wage, energy and transport costs are having on companies’ earnings expectations. The FTSE 100 is down 1.6% over the past year, compared with gains of 21% and 6.5% for the S&P 500 and the Europe-wide Stoxx 600 respectively. Over the past 12 months, 39 companies published their third or more profit warning, 13% of which went on to delist. EY-Parthenon said that, by the final three months of the year, a third of warnings came from companies with revenues of more than £1bn.

Paris restaurant La Tour d’Argent ‘loses’ £1.28m worth of wine: A legendary Parisian restaurant which inspired the film Ratatouille and hosted Queen Elizabeth II has reportedly ‘lost’ more than €1.5m (£1.28m) worth of wine. Dozens of bottles were found to be missing from La Tour d’Argent’s wine cellar, which boasts a collection of some 300,000 offerings, including some from pre-revolution France, Le Parisien newspaper reported. The restaurant, famed for its signature pressed duck dish and sixth-floor dining room which offers sweeping views of the Notre-Dame Cathedral, was said to have filed a complaint with police this month after discovering the loss during a routine inventory check. It is believed that the theft would have been carried out some time between January 2020 and January 2024. The cellar showed no signs of having suffered a break-in, Le Parisien reported. Among some of the bottles missing are wines from Domaine de la Romanée-Conti (DRC), an estate in Burgundy renowned for producing some of the world’s finest and most expensive vintages. Their offerings often sell for five-figure prices, with online wine sellers pricing a 1999 DRC Grand Cru at around €28,000 (£24,000), according to the latest estimates.