More than 100 hospitality leaders sign letter to chancellor asking for ‘urgent action’ in Budget: More than 100 hospitality leaders have signed a letter to chancellor Jeremy Hunt asking him to take “urgent action” in his forthcoming Budget to avoid further business failure. Bosses from 112 businesses including Burger King, Stonegate, Big Table Group, Mitchells & Butlers, D&D Group, ETM Group, Loungers, Young’s, Oakman Group, Tortilla, Fuller’s, Pizza Hut and Revolution Bars Group are among the signatories of the open letter. Within it, they and trade body UKHospitality highlight how rising costs, labour shortages and the cost-of-living crisis have led to an unprecedented surge in closures among high-profile names as well as community venues. It coincides with new data, from Zonal and CGA by NIQ, that shows 74% of UK consumers think hospitality needs and deserves more support from the government, while 64% believe hospitality plays a vital role in their communities. The letter calls for a cap on business rates increases from April 2024 at 3%, the introduction of a temporary cut in the lower rate of employer national insurance contributions to 10%, and a review of the benefits of a reduced rate of VAT for the sector to 12.5%. UKHospitality chief executive Kate Nicholls said: “The sector’s message to the chancellor is loud and clear: without further economic support at the upcoming Budget, we risk losing more of our institutions and doing irreversible damage to our world-leading hospitality sector. Extortionate operating costs are making it incredibly challenging to run a profitable business, so it’s vitally important that this is addressed in order to ease ongoing cost pressures and protect businesses from the threat of closure. This sector is one of the UK’s leading employers, providing work to more than three million people, and contributing more than £93bn to the economy each year. It not only deserves the support we are collectively asking for, but it needs it. I sincerely hope that this letter, supported by leading individuals from across hospitality, will be enough to convince the chancellor that his actions on 6 March will be make or break for many venues up and down the country.”

 

Flight Club operator CEO Steve Moore added to speaker line-up for first Propel Multi-Club Conference of 2024, open for bookings: Steve Moore, founder and chief executive of Red Engine, the Flight Club and Electric Shuffleboard operator, has been added to the speaker line-up for the first Propel Multi-Club Conference of 2024. Almost 400 places have been booked for the conference, which takes place on Thursday, 21 March, at the Millennium Gloucester Hotel in London’s Kensington, and is open for bookings. Moore discusses how the company has become a £100m-turnover business, its growth plans for the UK and the US, how it continues to innovate its food and beverage offer and games, and where he sees the competitive socialising sector going. Operators can book up to three free places per company while Premium subscribers who are operators can book up to four free places. To book, email kai.kirkman@propelinfo.com.

 

Variety of quick service restaurant operators to feature in next New Openings Database released tomorrow: Premium Club members will receive the next The New Openings Database tomorrow (Friday, 1 March), at midday. The database features openings by quick service restaurant operators such as Korean street food concept Bunsik, which is making its west London debut with the launch of its sixth site, in Kensington. Meanwhile, Chopstix has opened its second equity site of the year with an outlet in London’s Victoria and Little Caesars Pizza has opened its second UK restaurant since returning to these shores – with three more to follow this year. The database will show the details of 64 site openings, including which company has opened a site or its plans to open one in the future. It will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published on a monthly basis and Premium Club members will also receive a 2,800-word report on the new additions to the database. Premium Club members also receive access to five other databases: the Multi-Site Database, produced in association with Virgate; the Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database; the UK Food and Beverage Franchisee Database and the Who’s Who of UK Hospitality. All members will be offered a 20% discount on tickets to five 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 Premium Club 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 Premium Club for a year for £995 plus VAT – whether they are an operator or a supplier. Email kai.kirkman@propelinfo.com today to sign up.

 

Deadline unveiled for bookings for Propel Chicago study tour 2024, new operator visit announced: A deadline of Friday 15 March has been announced for the 2024 Propel Chicago study tour, which takes place between Saturday 18 May and Monday 21 May. Trip organiser Myles Doran said: “Those who want to come along now have less than three weeks to confirm their places.” The trip’s itinerary includes a wide range of restaurant, bar, speakeasy and nightclub tours, where delegates can explore and learn about the hottest concepts in the city. The trip now includes a visit to Time Out Market. Spread across 50,000 square feet, the curated dining destination packs 18 eateries, three bars, a demo kitchen, a rooftop terrace and a video-installation wall into one space that encompasses the best food, drinks and culture that Chicago has to offer. Also on the itinerary is a full day at the National Restaurant Association Show, featuring more than 2,000 exhibitors. The itinerary also features a pizza making masterclass at Uno Pizzeria & Grill – the restaurant that created the deep-dish pizza – a study tour of the Fulton Market and two hosted dinners. Propel managing director Paul Charity said: “This is a fantastic opportunity to gain valuable insight into the trends and concepts that are shaping the US hospitality market, which will no doubt provide fresh ideas and inspiration for delegates.” The single occupancy price is £3,500 and twin occupancy is £3,250 with the price also including flights, three nights’ accommodation, transfers, and a welcome drinks reception. For more information or to book, email myles@hospitality-inc.co.uk or call 07710 783485.

 

Conservative MPs demand VAT cut for pubs and restaurants: A letter signed by 45 Conservative MPs has called for chancellor Jeremy Hunt to reform VAT and business rates for hospitality businesses in the spring Budget. Simon Jupp, Conservative MP for East Devon, who met Hunt alongside a number of MPs who signed his letter, is hopeful the government will consider reducing taxes for pubs and restaurants, which have been doubly hit by covid and the cost-of-living crisis. The list of signatories includes former cabinet minister Priti Patel, Thérèse Coffey, Tim Loughton, Alicia Kearns, Tobias Ellwood, David Mundell and Stephen Crabb. The letter, which was sent to the chancellor on Tuesday (27 February), has asked the Treasury to address the “inequitable business rates regime” that means hospitality businesses pay £2.4bn more in tax than online outlets. MPs who have signed the letter have backed the Hospitality Sector Council’s call for a temporary cut in hospitality and tourism VAT to unlock investment. The letter said the hospitality industry had been hit by “sustained pressures” in recent years, which included high energy bills, rising wage costs and a challenging recruitment environment. The MPs argue that by using a revised tax framework, the hospitality industry could grow by an annual rate of 6% over the next five years. Jupp, who is also chair of the All-Party Parliamentary Group for Hospitality and Tourism, told Politics Home that reforming and reducing VAT and business rates for hospitality businesses will boost the industry. “As chair of the cross-party group in parliament for hospitality and tourism, and MP for East Devon – home to many of brilliant hospitality and tourism businesses – I want the government to continue its record of industry support by taking the actions set out in my letter to the chancellor,” he said. “Backed by more than 40 colleagues, these steps would provide businesses with the certainty they deserve in the years to come.” A Treasury spokesperson said its “decisive” action to cut inflation by more than half has protected businesses from around the country from across the country. They said: “We’ve also recently extended measures to support pubs, including a 75% on business rates and freezing alcohol duty until August 2024.” Alex Reilley, chairman of cafe bar operator Loungers, said: “Well done to Simon Jupp and the 44 other MPs that signed this letter. A VAT cut will be an absolute lifeline to thousands of small hospitality businesses and it’s encouraging that this has been recognised.”

Contract caterers’ sales rose 12% year-on-year in fourth quarter of 2023 but growth slows further: Britain’s leading contract caterers achieved year-on-year growth of 12% in the final quarter of 2023, the latest Contract Catering Tracker from CGA by NIQ and Bidfood reveals. It completed four quarters of double-digit growth last year as contract catering continued to build back from the pandemic. However, it also marks a further slowing of year-on-year increases, from 30% in the first quarter to 18% in the second and 15% in the third. With all four quarters combined, contract caterers’ total sales in 2023 were 18% higher than in 2022. This was despite a drop in the number of outlets served by contract caterers, which at the end of 2023 were fewer than 12 months earlier. The size of the market remains well below pre-covid levels. Karl Chessell, director CGA by NIQ, said: “Last year was one of recuperation for contract catering, which has steadily and impressively rebuilt its client base after the upheaval of covid lockdowns and trading restrictions. It also indicates a welcome return of staff to the workplaces served by caterers.” Debra Morrell, business development controller for business and industry at Bidfood, added: “We’re delighted to see that the sector continues its recovery, although this is tinged with a note of concern as a result of the slight reduction in outlets compared with last year. This has been not only fuelled by the return to offices, which has also brought much needed traffic into city centres, but also the continued buoyancy of leisure, venue and event trade, as well as resilience across healthcare, education and defence sectors. This year, economic challenges will continue to squeeze consumer spending, alongside food inflation, which is still present, although not escalating to the same degree we endured last year.”

 

CAMRA calls for government action after revealing 1,293 pubs closed in 2023: The Campaign for Real Ale (CAMRA) has called for government action after revealing 1,293 pubs closed in 2023. Its latest figures also showed 194 pubs were lost forever due to conversion or demolition, including venues like the historic Crooked House in Himley, Staffordshire, which is now subject of a rebuilding order. CAMRA also estimates that local economies took a £100m hit from pub closures in 2023 alone, with the loss of almost 20,000 jobs and 64 million fewer pints sold. It has now called for a package of measures ahead of the chancellor’s spring Budget, which will be announced next Wednesday (6 March). “Communities up and down the country are not simply facing the loss of pubs, but also the jobs, investment, opportunities, and social spaces those pubs create,” CAMRA’s pub and club campaigns director, Gary Timmins, said: “It’s easy to get caught up in the nostalgic idea of the pub as a British institution, but the positive impacts they have on people’s lives is very concrete. Government inaction is putting tens of thousands of businesses on the line, and it’s vital that the upcoming spring Budget provides a 20% draught duty relief, the removal of unnecessary red tape that currently prevents the sale of takeaway pints, and a VAT cut for hospitality. Pubs, social clubs, brewers, cider makers and consumers urgently need cohesive leadership from the government, not just piecemeal policy changes, and I hope these shocking figures are a catalyst for that shift.”

 

Wendy’s backpedals on surge pricing plans: Wendy’s, the third-largest quick service restaurant chain in the US, has backpedaled on plans to introduce “dynamic pricing” after facing a backlash. The Daily Mail reported earlier this week that the brand’s new system would begin testing across its US restaurants in 2025 and rely on digital menu boards, in which it will invest $20m, according to its chief executive Kirk Tanner. That would mean it would be able to update prices in real-time and at little to no expense. Tanner said: “Beginning as early as 2025, we will begin testing more enhanced features like dynamic pricing and day part offerings along with AI-enabled menu changes and suggestive selling.” Alongside a social media backlash from consumers, Senator Elizabeth Warren called the plan “price gouging”. A Wendy’s spokesperson said: “We said these menu boards would give us more flexibility to change the display of featured items. This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants. We have no plans to do that.”

 

Hospitality skills passport initiative can ‘revolutionise’ recruitment if rolled out: The hospitality skills passport initiative, which is currently being piloted, can “revolutionise” recruitment in the sector if rolled out further, UKHospitality has said. The passport will enable new employees to demonstrate a universal entry standard and competency across a wide variety of skills. It can be used at every level of the sector, from new starters to experienced staff, and will further professionalise training and development in hospitality. The concept has been tested, in partnership with the Department for Work and Pensions, through five pilot schemes across England and Wales, with an 85% completion rate, and with 80% of those completing the course now employed in hospitality. For it to be rolled out further, UKHospitality is asking that funding from the Adult Education Budget is allowed to be used for such schemes. Kate Nicholls, chief executive of UKHospitality, said: “Hospitality’s variety is undoubtedly one of its strengths but when it comes to entering the sector to work, it can be one of its greatest challenges. There are multiple routes into hospitality and with more than 200 different qualifications on offer, and that’s why a universal entry standard has never been more important. The new initiative does just that and can revolutionise the way we recruit, induct and develop our people. It will streamline onboarding, identify training needs and help develop skills quicker than ever before. We now need to move into the next phase to roll this out on a wider scale. That inevitably requires funding, and we’re encouraging the government to offer greater flexibility by allowing Adult Education Budget funds to be used for this type of employment programme.”

 

London’s Night Time Enterprise Zones see spending increase by up to 70%: Bromley, Vauxhall and Woolwich high streets saw spending increase by up to 70% after they became Night Time Enterprise Zones last year, according to a new report. London mayor Sadiq Khan and night czar Amy Lamé announced the £500,000 Night Time Enterprise Zones programme in 2022 to revitalise high streets after 6pm. Bromley, Lambeth and Greenwich each received a £130,000 grant from City Hall to improve the offer of their high streets at night, by experimenting with new ways to boost activity and business after 6pm. Throughout 2023, the boroughs used the funding to host a wide variety of events, extend opening hours, support businesses and night workers and increase safety. The report – Night Time Enterprise Zones Findings from Bromley, Vauxhall and Woolwich – revealed 56 events took place across the three zones, with 65 businesses extending their opening hours during the events – which increased the average local spend by up to 70% between 6pm and 9pm compared with the same dates in 2022. Each borough is committed to continuing to promote its high streets at night, with plans for new lighting schemes, night markets, artworks, safe havens and business forums to become permanent improvements. The work will also be used to develop new night-time strategies in the boroughs, and Khan and Lamé will be using the findings to encourage other boroughs to increase and diversify the night-time offer of their high streets. Khan said: “This programme shows that by taking a creative approach and offering more to local people after 6pm there can be far reaching benefits.”

 

Former Flip Out franchisees fined after 11 people broke backs at trampoline park: The former owners of a Chester trampoline park have been fined and ordered to do community service after 11 people broke their backs at the venue and hundreds more were injured. David Elliot Shuttleworth, 34, who also founded Boom Battle Bar, and Matthew Melling, 33, were the directors of Flip Out Chester, where a customer was injured the day after it opened and 270 more were hurt before it closed down two months later, reports The Telegraph. Some suffered “life-changing” spinal injuries and the number of people taken to A&E at the local hospital led to a delegation of medics visiting the site to see what was going on, Chester Crown Court heard. Customers, including many children, were injured after using the Tower Jump, where people could jump from a height of up to 5.3m (17ft 3in) and land in a foam pit. There was a “cavalier” approach to safety, the court heard, despite multiple people being injured on a daily basis. Shuttleworth, of Stoke on Trent, and Melling, of Manchester, both admitted at an earlier hearing to a single count of negligence under health and safety law between December 2016 and February 2017. Judge Michael Leeming said that he was passing sentence on the basis the defendants were negligent rather than committing deliberate acts or cost-cutting at the expense of safety, and that he was constrained by the sentencing guidelines and the law. Shuttleworth was fined £6,500 and Melling £6,300, with each ordered to complete 250 hours of unpaid community service. Shuttleworth was also ordered to pay £50,000 costs and Melling £10,000 costs, to go towards the £250,000 prosecution costs and council investigation. Earlier, the court heard both men had run a franchise business, Flip Out Stoke, and on 10 December 2016 opened Flip Out Chester, a “wildly successful” operation, which had 200,000 customers in the two months it was open. Despite the injuries on a daily basis, the business continued to operate, the court heard. The council was also alerted and an investigation launched, with the Tower Jump closed on 3 February 2017. Both former directors, who both now earn about £80,000 each working as business consultants, had been “chastened” by the investigation and prosecution, the court heard. The defendants’ company, Shuttleworth and Melling, went into liquidation in 2021. A number of personal injury claims are being pursued or have been settled.

 

Job of the day: COREcruitment is working with a sector delivery business that is seeking its first in-house legal counsel to join the UK team to support its expansion and corporate development. A COREcruitment spokesperson said: “The business is looking for a fully qualified lawyer with extensive knowledge of commercial contracts, including leasing and franchise agreements. Experience across data privacy, employment law and compliance would also be beneficial.” The salary is up to £85,000 and the position is based in Milton Keynes. For more information, email sheila@corecruitment.com. 

 

Vapiano set to at least double UK estate, opportunity for further expansion outside London, 2024 ‘looking strong’: Vapiano, which has McWin as its main investor, has told Propel it is looking to at least double the size of its five-strong UK estate and that it sees an opportunity for further expansion outside London. The business currently operates four sites in London and one in Manchester. It last year appointed Steve Collard, who has headed up operations at Honest Burgers and Gourmet Burger Kitchen, as its new director of operations, overseeing plans to open a “substantial number of restaurants” over the next five years with backing from the McWin Fund and the Handa family of investors. “We’ve certainly got growth plans – we’ve got the structure in our UK team and backing to be able to start growing the market,” Vapiano’s global marketing director, Vikki O’Neill, told Propel. “For us it’s about looking forwards, looking at the areas, looking at the markets and working out the best move. We have things in the pipeline but those planning growth will take each one as it comes at the moment – we don’t know what’s going to happen in the market or the wider world. The ambition is there, the backing is there, it’s just a question of finding the locations and getting the deals through. Conversations are being had but nothing further yet. Significant obviously means double what we have. We’re one of the smaller bigger groups and the volume of people we do in a week is probably similar to those with an estate three times what we have. We significantly punch above our weight. Outside London is always an opportunity – we were in Scotland before. The youth market and diverse demographic we have lends itself to main cities outside London. But London has the size, scope and availability of existing formats to support that growth much easier, plus local knowledge of landlords and footprints make it a lot easier.” Some of the future openings could well follow in the footsteps of Vapiano’s most recent opening, in Paddington, which comes in smaller than its other sites at 5,000 square feet and 160 covers. “Availability for one,” O’Neill said by way of what advantages smaller sites offered. “In 2016 we were looking for the 9,000-10,000 square feet status sites, but they’re not as available any more, and that time has passed for us. It’s a bit like when I was at Wagamama and it was all about basement sites, but all those have closed now and they’re all above ground.” Vapiano last month reported a 14% increase in its UK like-for-like December sales, with all of its sites generating double-digit like-for-like sales growth and an overall 6% transaction increase. “January has been a bit tough for the whole industry but the rest of the year for us is looking strong,” O’Neill added. “Our price point is still really good for the fact it’s handmade fresh pasta, we think the value is still there and the app will help with that. It’s incredible to think the first Vapiano opened in 2008 and is still performing incredibly well and is almost an unknown secret to many people.”

Breal Group ‘surprised by the amount of brewery opportunities that have come up’, targeting annual revenues of £100m: Mark Williams, chief executive of Keystone Brewing Group, the brewing operation backed by investment firm Breal Group, has told Propel that the company plans to make further acquisitions as a “correction” in the market continues at pace. Over the last year, Breal, which also backs D&D London and Vinoteca, has acquired Yorkshire-based Black Sheep Brewery, the Purity Brewing Co, Brick Brewery and Brew by Numbers. Williams said the plan was to grow annual revenues from its beer operations almost fourfold to £100m by 2028, with three quarters of that planned growth coming from acquisitions. He told Propel: “It has surprised us, the amount of opportunities that have presented themselves. Since we bought Black Sheep back in May, there has almost been a queue at the door. We’ve looked at eight opportunities since we came back after Christmas, there’s a lot of pain out there. We didn’t anticipate buying four companies as quickly as we did, and we don’t make a habit of buying businesses out of administration. We have a target to grow to £100m revenue and we are currently talking to a number of breweries – solvent breweries, I might add – with the view to acquiring them. Right now, a correction is happening in the category. What’s been remarkable about this correction is the speed. We’ve come out of covid and into the impact of the invasion of Ukraine, and then a significant increase in costs. Subsequently, many of these businesses took out CBILs at 2.5% above base, and base was 0.5%. Because that has now increased, they are carrying significant debt, and to pay that off they need volume, which is increasingly difficult to come by. So, if you are a brewery of a certain size, it can be almost impossible to get your head above water. So, there is a correction happening, but it’s been stimulated greatly by the cost of living and the cost of borrowing.” Williams said that since May last year, the business has saved 170 jobs that would have been lost and “saved some really great beers and fantastic brands”. On further hires, he said: “We have eight sales roles that we are trying to fill and we’ve recruited nine others already. We will have a sales team, hopefully by the end of May, of 35 people. That’s what the scale brings – the ability for us to invest and broaden our horizons. I mentioned we have a plan, and the plan is to grow the brewery group to a £100m-turnover business. Underpinning that will be a range of regionally loved beers.”

 

Caring to take Sexy Fish to Dubai: Caprice Holdings, the Richard Caring-backed, high-end restaurant business, is set to open a site under its Sexy Fish concept in Dubai. The business – which already operates Sexy Fish sites in London, Manchester and Miami – is understood to be opening a site in Dubai’s International Financial Centre (DIFC). It is believed that the business has lined up an opening for later this year in DIFC’s new Innovation Hub tower. It would mark Caprice Holdings’ return to Dubai for the first time since 2016, when it closed a site under The Ivy concept there. Caprice Holdings is also set to open a Sexy Fish site at the Via Riyadh scheme in Saudi Arabia. Last summer, Caprice Holdings opened a site under its Scott’s brand at the luxury shopping and entertainment complex. Last October, Propel reported that Caprice Holdings had swung back into a profit for the first time since the pandemic. Sales rebounded by 71% to £74.4m (2 January 2022: £43m) for the company over the 52 weeks to the start of January 2023 while adjusted Ebitda for the period stood at £12.3m (2 January 2022: minus £600,000). The group generated a pre-tax profit of £1.2m last year, an improvement on a loss of £3.9m the year before but still much lower than the £19.1m reported before the pandemic.

 

Jenni Hughes-Ward steps down as Patisserie Valerie CFO: Jenni Hughes-Ward has stepped down as chief financial officer at Patisserie Valerie, Propel has learned. Hughes-Ward joined the business in February 2021 when she replaced Richard Purvis, who had left earlier the same year. She spent four months as financial director before being appointed group chief financial officer in May 2021. Hughes-Ward was previously financial director and group financial controller at sofa.com, and financial controller at Links of London, Tribe Marketing and Acorn Stairlifts. Patisserie Valerie, which is backed by Irish private equity firm Causeway Capital, reopened its flagship store in Cribbs Causeway, Bristol, in December. The group said the relaunch is “a significant milestone” as it looks to start reopening some of its once 200-strong estate, the majority of which closed following its collapse into administration in 2019. As well as circa 30 shops, Patisserie Valerie also has concessions inside around 400 Sainsbury’s stores.

 

Urban Baristas signs second franchisee: Aussie-inspired coffee concept Urban Baristas has signed up its second franchisee. The 12-strong business, founded in 2016 by Huw Wardrope and Jono Bowman, launched its franchise programme in December, and told Propel last month that it was set to double its estate this year as it also explores opportunities outside London. Its first franchise site is set to launch in Tooting Bec station, as the business looks to add 30 more stores over the next three years. It has now secured Gustavo Paseto Zonta, who has been with Urban Baristas for five years, as its next franchisee, with a first opening in London’s New Cross Gate planned. Following a spell in the Brazilian army, Zonta spent five years working in IT roles in his native country before coming to the UK in 2018, since when he has been a barista, store manager and operations manager with Urban Baristas. “We are proud to announce another milestone as we welcome Gustavo Paseto Zonta, our second franchisee, to the Urban Baristas family,” a spokesman for the business said. “This partnership marks another big step forward for both Urban Baristas and Gustavo as we join forces to spread the Urban love of epic coffee throughout the UK. Gustavo has been working with us at Urban for the past five years and is now broadening his horizons, eager to embark on his own business journey. Follow us for updates on his Urban branch that is soon to open in New Cross Gate. As our brand’s footprint expands beyond its 12 existing locations around London, including its own roastery in Bethnal Green, we are setting our sights even higher through a strategic franchising approach.” Urban Baristas features in the Propel UK Food and Beverage Franchisor Database, which is an exhaustive guide to the companies offering a food and beverage franchise in the UK and is available exclusively to Premium Club members. The database is updated every two months and the latest version features 235 businesses. Companies can now have an unlimited number of people receive access to Premium Club 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.

 

Welcome Break becomes Chopstix’s largest franchise partner with third opening in as many months: Welcome Break has become Chopstix’s largest franchise partner with its third opening of the pan-Asian brand in as many months, and 16th overall. The new food court unit, in Corley South (M6) services in Warwickshire, opens this week, hot on the heels of openings at Newport Pagnell North (M1) services in Buckinghamshire and Welcome Break Membury West (M4) services in Berkshire. Aaron Moore-Saxton, Chopstix’s franchise director, said, “We are delighted to open another site with what is now our biggest franchise partner. Welcome Break’s success with Chopstix is highly encouraging, with the latest sites already delivering impressive returns, and I have no doubt Corley will bring similar results.” Adrian Grimes, Welcome Break’s commercial director, added, “We are thrilled to be strengthening our partnership with Chopstix with the opening of our newest site in Corley South. Chopstix performs consistently well across our portfolio, so we’re confident Corley South will deliver similar success.” As well as its franchise openings, Chopstix has also launched two new equity sites this year.

 

Gymbox agrees refinancing and ends leases on two sites, looking to launch in Finsbury Park ahead of planned UK and international expansion: London gym operator Gymbox has agreed a refinancing and ended the leases on two of its sites, as it looks to launch in Finsbury Park ahead of planned expansion both here and abroad. Having decided to “optimise its operations by consolidating and focusing on its most successful locations”, the business has terminated the lease on its MOB45 site in Farringdon and decided not to renew the expired lease on its Covent Garden site. The business, which now operates eight gyms, said its primary objective this year is to launch in Finsbury Park and “foster the revival of our City locations”. Director Scott Vernon said: “Additionally, we aim to expand our presence by identifying and developing new sites in London and pivotal cities across the UK and internationally. Although navigating the aftermath of the pandemic in London has been challenging, we see a positive year ahead as more businesses return to the City.” The business also this month agreed terms for restructuring its debt with HSBC and the Business Growth Fund, with repayment of all facilities delayed to August and November 2025 respectively. A first loan note of £4,750,000 is repayable in four instalments of plus accrued interest between November 2025 and May 2027, while a second loan note of £6,256,980 plus accrued interest is repayable in October 2026. It comes as the business reported a surge in turnover and robust growth in membership during the year to 31 October 2022 but a sharp decline in Ebitda. Its turnover grew by 94% from £8,775,001 in 2021 to £17,038,034, while its pre-tax loss increased from £8,250,216 to £12,382,269, and Ebitda was down 97% from £1,753,379 to £48,415. Membership base was up 12% (2021: 2%) and member visits witnessed an uptick of 101% (2021: decrease of 46%), while joiners rebounded significantly to a 53% increase (2021: 16% decrease). Vernon said the Ebitda decline was primarily attributed to a one-off recognition in 2021 of £2.3m in negotiated rent savings. The business received no government grants (2021: £1,377,480). No dividends were paid (2021: nil). This year will see Gymbox launch its outdoor bar parks in partnership with Calisseum, providing access to outdoor fitness in some of London’s most deprived areas. It will also look to hold another three fitness-based events and launch member’s fitness holidays. An impairment assessment also identified a need to charge an additional impairment of £500,000 (2021: reversal of £2.08m) against the carrying value of tangible and intangible fixed assets.

 

Artfarm appoints new The Groucho Club CEO: Artfarm, the independent hospitality business run by former Fortnum & Mason chief executive Ewan Venters, has appointed Elli Jafari as the new chief executive at The Groucho Club. Artfarm acquired the venue in a deal believed to be valued at circa £40m in August 2022 – adding it to a portfolio that includes other Mayfair venues such as Mount St Restaurant, The Audley Public House and the recently opened Farm Shop and Butcher Shop. Jafari joins Artfarm from The Standard, where she was executive vice-president for London and Ibiza, and where she oversaw the brand’s operations in Europe and Americas. She has also held positions at W Hotel group, Morgans Hotel Group, Hotel Pulitzer Amsterdam, Lore Group and ACE London, and prior to joining The Standard, she was managing director of The Curtain Hotel & Members Club. Joining in mid-April, Jafari will “work closely with the Groucho team to build on its past decades of success”. Venters said: “The appointment of Elli signifies the start of an exciting new era for The Groucho Club. As our first female chief executive, this feels particularly apt as we approach the 40th anniversary of the club’s formation. We have exciting plans in the pipeline, and I am confident that Elli’s considerable expertise will enable us to further enhance our member experience for many years to come while staying true to our founding principles.” In October, Propel revealed that The Groucho Club had refinanced and returned to profit in the year it was acquired following a £27,641,355 intercompany loan write off. This saw the business turn a £2,056,707 pre-tax loss in 2021 into a profit of £28,717,940 for the year ending 1 January 2023. Its turnover rose from £5,438,000 to £7,972,000 while its Ebitda dropped from £1,780,000 to £1,035,000.

 

The Wolseley Hospitality Group converts Café Wolseley in Bangkok from pop-up to permanent restaurant: The Wolseley Hospitality Group has converted its first international site, in Bangkok, Thailand, from a pop-up to a permanent site. The business initially launched the Cafe Wolseley as a three-month pop-up at the Anantara Siam Bangkok Hotel last spring. Taking a space at Parichart Court at the hotel, the pop-up featured the same menu as its London counterparts. The company said that following a successful one-year residency, it has now become a permanent fixture. It said that this “marks a new chapter in international expansion for The Wolseley Hospitality Group”. Last year, Dillip Rajakarier, chief executive of Thai hotel company Minor International, the owner of The Wolseley Hospitality Group, said he envisaged Wolseley restaurants in Hong Kong, Singapore and Shanghai, as well as London’s financial district. He also plans Cafe Wolseley sites – more relaxed versions of the original in London’s Piccadilly – across other parts of China and the Middle East, as well as Manchester, Birmingham and Oxford in the UK. “Our plan has always been two things,” Rajakarier told Bloomberg. “One is to grow the brand within the UK, and number two is to take the brand outside, because a lot of our international guests love the brand, whether it’s the Middle East or Asia.”

 

North east coffee and artisan doughnut cafe concept set to open new stores after securing investment: North east coffee and artisan doughnut cafe concept Deep North is set to open new stores after securing investment. Deep North was established by school friends Phil King and Tom Clark and produces doughnuts using local and seasonal ingredients. Its first outlet launched in Front Street in Tynemouth 18 months ago, and a second base soon followed in Dean Street in Newcastle city centre. Deep North also has a regular presence at markets, events and pop-up locations across the region. The business has received investment from the North East Small Loan Fund as it looks to find further locations across the region. The investment has also enabled Deep North to expand its kitchen equipment, meaning it can grow in capacity. King said: “Deep North was successful right from the off, with more than 400 doughnuts being sold in Tynemouth on a busy day and additional sales through the markets and other events that we attend. We reached the point of opening our second outlet far more quickly than we expected, but it’s been really well received by Newcastle customers and we’re now working on ways to use the space at different times of the day, as well as tapping into the city centre’s corporate market. Our aim is to open more outlets around the region over the next couple of years, to substantially increase our production levels to service these locations and to build the Deep North concept into a recognisable part of the north east’s food sector.”

 

Ham Restaurants to open fourth London site: Dominic Hamdy, founder of Crispin in Spitalfields, Bistro Freddie in Shoreditch and Bar Crispin in Soho, will open a fourth restaurant in London – Crispin at Studio Voltaire – this spring. Opening in Clapham under Hamdy’s Ham Restaurants vehicle, Crispin at Studio Voltaire will be a 50-cover restaurant and counter bar, located in Studio Voltaire, a gallery and arts venue. The company said: “Crispin at Studio Voltaire will retain the same ethos as Crispin, Bar Crispin, and Bistro Freddie, focusing on small and predominantly independent producers and growers. The aesthetic will be understated and elegant with a nod to 1990s Terence Conran. The site will comprise 40 seated covers with an additional ten bar covers, an outdoor drinking garden and, in the summer months, a dining terrace. The restaurant will be open for daytime service and lunch Wednesday-Sunday and dinner Thursday-Saturday.” The food menu at Crispin at Studio Voltaire will be overseen by Michael Miles, who was previously at Counter71 and Manteca. Hamdy said: “I’m delighted to be working with Studio Voltaire on a project that will bring something new to the Clapham area. We have some exciting initiatives in-store, engaging with the artists that inhabit the building and the local community in south London. The offering will be comforting and seasonal and, as in our other restaurants, be a celebration of the incredible produce we have here in the UK. Studio Voltaire is a special place that deserves a special restaurant.”

 

Hard Rock Café closes Glasgow site: Hard Rock Café has closed its site in Glasgow. The company posted on social media that the site, which is located in Glasgow city centre in Buchanan Street, “would not be operating at this time”. The restaurant and bar opened in 2013. A Hard Rock Cafe spokesperson said: “We regret that the Hard Rock Cafe Glasgow, located at 179 Buchanan Street, will not be operating at this time, but we continue to welcome our valued guests at the Hard Rock Cafe Edinburgh, located at 20 George Street in Edinburgh.” The brand currently operates six sites in the UK and Ireland, and more than 60 worldwide. Propel revealed last month that Hard Rock Café’s UK business saw pre-tax losses reduce to £9,461,000 in the year to 31 December 2022 (2021: £18,249,000) on turnover up to £27,245,000 (2021: £12,733,000). During the year, the company recorded impairment expenses of £8m (2021: £13.6m) related to its Piccadilly café. As its restaurants began to reopen, the company saw retail average spend increase to £38.50 (2021: £33.85) while restaurant average spend reduced to £28.86 (2021: £31.12). The company said it expected business to return to normal by the end of 2024.

 

Madre team confirm March opening for new Manchester restaurant: The team behind Mexican taco restaurant and bar concept Madre in Manchester and Liverpool has confirmed a March opening for its new Manchester restaurant. Chris Edwards, Nud Dudhia, Sam Grainger, Owain Williams and Chris Witney, who are also behind neighbourhood bistro Belzan and cafe/cocktail bar Burnt Milk in Liverpool, will open Medlock Canteen on Saturday, 23 March at the New Jackson scheme, on Manchester’s southern gateway. Inspired by American diners and Parisian bistros, the 80-cover venue will offer bottomless coffee alongside an all-day menu. Breakfast will include duck-egg hash, millennial eggs (smashed avocado and poached eggs), pancakes and a crab and gruyère omelette, while lunch will feature sandwiches such as roast beef with caramelised onions and grilled cheese with Gruyère, cheddar, mozzarella and pickles. Dinner dishes will include steaks and fish alongside lighter options like fresh salads, while the focal point of the menu will be rotisserie chicken, which will be served in baguettes at lunch or in half or whole at dinner, with a choice or sides (or to take away throughout the day). Williams said: “Medlock Canteen is inspired by American diners and French bistros. In these venues, everyone is always welcome for unfussy, traditional, everyday fayre. The British equivalent of these spaces has always been the pub, but the community bond created by these spaces has become collateral damage in the UK’s reframed relationship with the pub. We still want the community, the accessibility and the prices, but it needs to exist in a different atmosphere suitable for the city dwellers of Manchester.”