Greggs overtakes McDonald’s to become UK’s most popular breakfast spot, workers to share £17.6m bonus pot: Roisin Currie, chief executive of Greggs, has said that the food-to-go business has overtaken McDonald’s to become the UK’s most popular breakfast spot, and that the company plans no further price rises this year. Currie was speaking after the business said it was targeting 140-160 net openings this year and reported that its like-for-like sales are up 8.2% in 2024 as “inflationary pressures are reducing”. She said the brand’s ability to offer cost-effective food-on-the-go, especially for breakfast, has pushed them ahead of McDonald'’ in the UK breakfast sector for the first time, with 19.6% of visits. “We have been evolving into that market,” she said, adding that Greggs was not expecting to overtake McDonald’s for later meals as its share of takeaway dinners is still less than 2%, for example. The company said its full-day market share was at a record high, with its share of food-to-go visits 8.2%, up from 7.7% in 2022. Greggs increased prices by between 5p and 10p on some items in December but held down the cost of bestselling items including its sausage rolls and vegan sausage rolls. Currie said: “We have no plans for further price rises. We know that the consumer disposable income remains under pressure. Last year and the year before were tough for the consumer, and that may continue through this year. What’s helpful is that we are seeing a lower level of inflation in the economy.” At the same time, she said around 25,000 Greggs workers will get a staff bonus in their March pay packet. They will receive a share of the £17.6m bonus pot after Greggs reported a 27% increase in annual profits. Greggs employs 32,000 people in total. Each year, the company shares out 10% of its profits with staff who have worked at the firm for at least six months. Russ Mould, investment director at AJ Bell, said: “This drive to be the food-on-the-go king is paying off, with Greggs’ market share at an all-time high, and the business has now grabbed the top spot for breakfast. The pace of growth actually slowed each quarter during the past year, albeit still delivering the kind of success most companies can only dream of. February was a washout month for all retailers due to the bad weather, and that might explain the reduced growth reported by Greggs.”

 

Sponsored message – Solo Coffee produces cost-saving calculator for hospitality operators: Solo Coffee has produced a cost-saving calculator for hospitality operators to calculate how much time and money is spent making espresso martinis. Solo Coffee entered the on-trade in 2021 with its Coffee Concentrate product. It is espresso-strength cold brew coffee that replaces the need for fresh espresso in an espresso martini. Co-founder Theo Garcia said: “Coming from a coffee background, we were just focused on making the best quality ready-to-drink coffee on the market. Since the product has blown up in the on-trade sector, we’re now recognising that operators are drastically saving on labour and wastage costs when using our product. For this reason, we’ve created a calculator that demonstrates these cost saving effects. If bars want to serve espresso martinis, they’ve had to rely on installing expensive coffee machinery, training staff to make coffee or wasting time pre-batching espresso, only to have to throw it away at the end of the shift. With ongoing staffing issues, operators keeping a closer eye on wastage and consumers expecting high quality consistently, Solo is well positioned to support bartenders in creating one of the most popular cocktails in Britain.” If you have a sponsored story you would like to see featured in this newsletter position, email paul.charity@propelinfo.com.

Bubba Oasis co-founder Rob Huysinga to speak at first Propel Multi-Club Conference of 2024, open for bookings: Rob Huysinga, co-founder of all-day restaurant and bar concept Bubba Oasis, will be among the speakers at the first Propel Multi-Club Conference of 2024. More than 350 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. Huysinga focuses on building a presence in the capital and the challenges and opportunities provided when operating a business that offers co-working space, a restaurant, bar and nightclub. Operators can book up to three free places per company while Premium Club members who are operators can book up to four free places. To book, email kai.kirkman@propelinfo.com.

 

Premium subscribers to receive two updated databases this week: Premium subscribers will receive the next edition of the UK Food & Beverage Franchisee Database today (Wednesday, 6 March), at midday, featuring ten new entries and updates to existing entries. The database is updated every two months, and the latest version features 130 businesses and more than 55,000 words of content. Among the new entries are HSD Capital, which recently became the first franchisee for Floozie Cookies; Motor Fuel Group, which franchises with the likes of Pret, Miss Millie’s, Subway, Coco Di Mama, Greggs, Starbucks, McDonalds and Burger King across more than 900 petrol stations; Pasco Group, which operates 18 Subway stores in and around the Bristol area; and Savvi Dining Group, which became one of Itsu’s first franchisees in 2021. Following this, the next Turnover & Profits Blue Book will be sent out on Friday (8 March), at midday. A further 17 companies have been added, while 37 have updated figures. The database now features 888 companies, with 582 in profit and 306 in loss. Premium Club members also receive access to four other databases: the Multi-Site Database, produced in association with Virgate; the New Openings Database; the UK Food and Beverage Franchisor Database; and the Who’s Who of UK Hospitality. All Premium Clubs 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 that are Premium Club members 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 supplier. Email kai.kirkman@propelinfo.com today to sign up.

Only a Pavement Away helps more than 450 people find work in sector: Only A Pavement Away – the industry charity aiding prison leavers, veterans and those facing homelessness find employment in the hospitality sector – has placed more than 450 people into employment to date. Launching its five-year impact report at the charity’s annual conference, the report valued the impact of this to the UK economy at £12.8m through reduced government support, financial independence and increased household expenditure. Across the five years since Only A Pavement Away has been founded, the charity has also awarded £51,000 to help candidates and members start and sustain employment. In addition, more than 1,700 people have been through one of its training courses or workshops. Greg Mangham, chief executive of Only A Pavement Away, said: “I’m so proud of what Only A Pavement Away has achieved in such a small amount of time and I’m hugely positive about the future. What we’ve learnt over five years is this process works for our candidates, employer partners and the wider economy, and the numbers really demonstrate our impact.” At the conference, Mangham also laid out the charity’s three-year plan, including a goal of supporting 9,250 people by 2029 – which he said will add £473m to the UK economy.

 

Zero Carbon Forum and Nutritics join forces to drive down carbon impact of food menus: The Zero Carbon Forum and foodservice technology provider Nutritics have joined forces to help operators drive down the carbon impact of food menus. With up to 70% of an operator’s emissions being from food – scope 3 emissions – the partnership will bring together the forum’s existing carbon emissions data across all scopes to capture dish-level data through Nutritics’ Foodprint solution. The integration comes as Zero Carbon Forum launches its sustainable menus action group, with support from Nutritics and Brakes, “to enable operator food teams to collaborate seamlessly on low carbon menus”. Mark Chapman, Zero Carbon Forum chief executive, said: “To take real action and make meaningful reductions in emissions, creating sustainable menus is key. By integrating Foodprint outputs into our platform, operators will now be able to capture dish-level data, enabling food development teams not only to easily measure and manage low or no carbon recipes, but also see at a glance the potential and actual cost-savings that simple food switches could contribute to the bottom line.” 

 

Labour unions end Starbucks boardroom fight, Middle East franchise to cut jobs: A coalition of labour unions has announced it is ending its boardroom fight with Starbucks after the coffee chain agreed to work toward reaching labour agreements. The Strategic Organizing Center (SOC), a coalition of North American labour unions, is withdrawing its three director candidates for the coffee chain's 11-member board a week before Starbucks investors were set to elect directors to oversee corporate strategy at the company’s annual meeting. Reuters reports that many large investors told the coalition they are optimistic Starbucks is committed to changes and plans to repair its relationship with employees. Starbucks said it appreciated the coalition’s decision and added that its board is focused on “driving long-term value for all stakeholders, including partners, shareholders, customers, and farmers”. It said: “Starbucks has always been committed to doing the right thing – importantly, for our partners who are the heart of our business.” At the same time, the company behind Starbucks in the Middle East has revealed plans for job losses, reported at 2,000, amid a consumer boycott linked to Israel’s war against Hamas. Reuters reports that franchisee AlShaya Group plans to lay off 4% of its workforce of 50,000 across the Middle East and North Africa (MENA). The bulk of the jobs would go across its Starbucks franchise business. Kuwait-based AlShaya said: “As a result of the continually challenging trading conditions over the last six months, we have taken the sad and very difficult decision to reduce the number of colleagues in our Starbucks MENA stores. We will ensure that we give our colleagues leaving the business, and their families, the support they need.”

 

Job of the day: COREcruitment is working with a brewery group that also operates pubs that is looking for a head of sales. A COREcruitment spokesperson said: “As the head of sales for a nationwide brewery, your role would be to oversee and manage the sales operations of the company across various regions. You would be responsible for developing and implementing effective sales strategies to drive revenue growth, expand market share, and achieve sales targets. You will also build strong customer relationships and ensure the brewery's products are well-distributed and readily available in the market.” The salary is up to £60,000 and the position is based in Surrey. For more information, email mark@corecruitment.com.

 

The Gentlemen Baristas acquired out of administration for £785,000: Coffee company The Gentlemen Baristas has been acquired out of administration for £785,000, Propel has learned. Propel revealed in January that Farheen Qureshi, of Parker Getty, had been appointed administrator of The Gentlemen Baristas, which led to the closure of a handful of the company’s sites, including those in Hammersmith, Holborn and Vinegar Yard in London Bridge. Four of the company’s sites continued to trade – those in Mayfair, Piccadilly, Borough and Park Street in London Bridge. The company also operated a 12,000 square-foot roastery and experience centre in London’s Stratford. Propel understands that 16 offers were received for The Gentlemen Baristas, ranging from the sum of £3,200 for individual assets to £785,000 for the business and its shareholdings in two trading subsidiaries – GB2 and GB3. The highest offer of £785,000 included the assets, the leasehold premises for London Bridge and the roastery, the staff and the shareholding in the trading subsidiary companies GB2 and GB3, which included the debts. The remaining leasehold premises were not included. The purchaser is a newly incorporated company, Gentlemen Baristas, and was not connected to the company by virtue of its directors or shareholders. Propel understands that the new owners also acquired the Chestnut Bakery business last year. The administrators report stated: “In 2018, investment was obtained from Qoot International, which made an initial investment of £835,000 in the company. In 2021, a loan was made into the company by Sisban Holding, the parent company of Qoot, for the sum of £375,000. In 2022, there was a capital raise of £1.5m in which Sisban and Game Changer participated. Sisban invested £1.325m and Game Changer was due to pay £225,000, which was never paid. Sisban lent a further £525,000 to the company including the £225,000 that wasn’t paid by Game Changer. With the inward investment, the company expanded and launched its own coffee roastery and no longer contracted out its requirements to the roastery in Bristol. The wholesale operations were expanded and a website launched to sell coffee and accessories to the general public. The company also expanded its retail premises with nine sites operating in London under The Gentleman Baristas brand by 2022. Seven of the sites were operated by the company and the other two branches were operated by two trading subsidiaries, GB2 and GB3. In January 2023, a loan of £1,225,000 was paid across to the company by Sisban. With these funds, the company expanded its roastery operations and moved to larger premises in east London. In 2023, The Gentlemen Baristas was being adversely affected by higher costs of materials, the costs of sales and staff costs. Of the company’s seven retail sites, five were loss-making. The company was being financially supported by Sisban, which was owed in excess of £2m by the company.”

Vapiano appoints Andrew Walker as new chairman: The McWin-backed Vapiano chain has appointed Andrew Walker, former chief executive of EAT and ex-managing director of Pret A Manger, as its new chairman, Propel has learned. Walker stepped down from EAT in 2019 after the circa 90-strong business was acquired by rival Pret in a deal valued in excess of £60m. Walker, who was previously UK managing director of Pret, spent three years leading EAT, turning the business around and overseeing more than 12 months of consecutive like-for-like growth before its sale. In addition to Pret and EAT, Walker previously worked at executive levels within Virgin Atlantic, Casual Dining Group and Platopus Systems. He is also currently a non-executive director at Farmer J. Vapiano currently operates 154 sites across 32 countries, including five in the UK. Sinclair Beecham, the co-founder of Pret, was one of the group investors that backed the new owners of the Vapiano brand when it was acquired in summer 2020. The group of investors, which also included AmRest founder Henry McGovern, backed Mario C Bauer, who was Vapiano’s former head of international franchising, to restart the brand after it filed for insolvency due to liquidity problems following declining sales earlier that year. Last month, Vapiano told Propel it is looking to at least double the size of its 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. Last year, Vapiano appointed Steve Collard, who had 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. Some of the future openings will 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.

 

Darwin & Wallace ‘continuing see huge performances at the weekends’: Darwin & Wallace, the seven-strong London-based, Imbiba-backed neighbourhood bar group, has said that despite trading being sluggish particularly at the beginning of the week, it is continuing to see “huge performances” at the weekends. Darwin & Wallace managing director Mel Marriott told Propel: “Along with many, our last financial year was a tough one – largely down to factors that were outside our control, namely the transport strikes and a huge spike in inflation attacking our top line sales and conversion. I am pleased to say that our new financial year got off to a great start in June, with our terraces coming in to their own, and while trading over a damp summer gave us tough comps, we were pleased to then have a fantastic Christmas, with records at site and company level and our first 500,000 week of net sales. January and into February has been sluggish, particularly at the beginning of the week. However, we are continuing to see huge performances at the weekends, with three sites regularly trading over £20,000 net on a Saturday, and some of our longest established sites still delivering growth ten years after inception, which I think can be attributed to maintaining the quality of our offer and environment along with fiercely pursuing innovation in both our drinks and food offer. We have also seen superb growth at our Battersea Power Station site. Whilewe are not immune to the impacts of the squeeze on our guests’ finances, the wide appeal of our all-day offer, along with brilliantly located sites, has allowed us to maximise the opportunity to capture sales when our guests do venture out. Like most, we are looking forward to spring and an improvement in the wider economy so that we can truly capitalise on the underlying strength of our business.” It comes as the business reported sales for the year to 28 May 2023 were £17,844,912 (2022: £17,521,727) representing an increase of 1.8% on the prior year (without adjustment for the VAT benefit in the prior year). It said additional costs during the year are estimated to have reduced site Ebtida by circa £1,100,000. Adjusted site Ebtida for 2023 was £1,319,033 (2022: £2,608,885), while pre-tax losses stood at £1,911,425 (2022: loss of £1,118,711). The company said it “remained committed to delivering an exit for shareholders as soon as the market sentiment improves”. Darwin & Wallace features in the Premium Club Turnover & Profits Blue Book, the next edition of which will be released next Friday (8 March) and will feature 889 companies. Its turnover of £17,844,912 for the year to 28 May 2023 is the 446th 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 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.

 

Foresight invests £5m in Family Adventures Group to accelerate concept’s expansion: Foresight, the regional private equity investment manager, has invested £5m in Family Adventures Group to accelerate the children’s leisure venue and day nursery concept’s expansion. Founded by husband-and-wife team Tom and Laura Filer, Family Adventures Group’s operations are built on a “hub and spoke” model which sees a children’s leisure site opening with accompanying nurseries created nearby. There are currently six nursery sites across the south west and Midlands – in Cheddar, Worle, Weston-Super-Mare, Bridgwater, Taunton and Dudley. These are supported by two leisure venues, Ocean Adventurers in Cheddar and Space Adventurers in Taunton, and an upcoming third site, Little Town Adventures in Weston-Super-Mare. The investment from Foresight will support the duo’s ambitious growth plans, which will see the creation of further new leisure sites with accompanying nurseries across the south west and Midlands. The newest site, set to open this spring, will see the creation of a miniaturised shorefront of Weston-Super-Mare. As part of Foresight’s investment, Jennifer Taylor has been appointed as chief finance officer, joining from iQ Student Accommodation and educational publishing business Pearson. Ann Elliott, who has worked at board level for companies including Pizza Hut, Beefeater, Hall & Woodhouse and Gusto, also joins as chair. Nick Mettyear, senior investment manager at Foresight Group, said: “Tom and Laura have created an exciting business model that shows real potential for growth. The team are targeting areas where there has been a chronic shortage of quality early years education options and will provide an excellent alternative to parents. The imaginative playscapes in the leisure sites will also bring a new approach to educational and interactive play.” Tom Filer, chief executive of Family Adventures Group, added: “We’re proud of the growth we have been able to achieve since starting in 2019, creating high-quality childcare and leisure venues. The whole team is delighted to have investment from Foresight into our company to allow us to turbocharge our growth.”

 

Whole Foods Market to open smaller format stores: Whole Foods Market is introducing a new, quick-shop store format designed to provide customers in urban neighbourhoods a “quick, convenient shopping experience with easier access to the fresh, high-quality offerings”. The new format, called Whole Foods Market Daily Shop, will initially launch in the Upper East Side in Manhattan, with additional locations in New York City to follow. The first store, located at 1175 Third Avenue, is expected to open this year. Whole Foods Market then plans to bring the format to other cities across the US. Ranging between 7,000 to 14,000 square feet, the quick-shop stores are about a quarter to half the footprint of an average 40,000 square-foot Whole Foods Market store, paving the way for expansion in dense, metropolitan areas. The company – which currently has more than 530 stores in the US, UK and Canada, with more than 75 in the pipeline – said Whole Foods Market Daily Shop will provide a “convenient option for grab-and-go meals and snacks, weekly essentials, and a quick, easy destination to pick up ingredients to complete a meal – with all items meeting the company’s rigorous quality standards”. Though smaller, the stores will still offer Whole Foods Market favourites, including fresh, seasonal produce, meat and seafood, prepared food like sandwiches and pre-packed meals, bread, alcohol and supplements, as well as a handpicked range of local specialties. In addition, the location expected to open this year will be the first Whole Foods Market store in Manhattan to offer Juice & Java, a venue for coffee, tea, fresh pressed juice, smoothies, sandwiches, soup and desserts. Christina Minardi, executive vice-president growth and development, Whole Foods Market and Amazon, said: “At our new store formats, we’re tailoring every square foot to the unique, fast-paced needs of urban lifestyles. Expanding our footprint with Whole Foods Market Daily Shop is key to our growth, fostering deeper customer connections, and advancing our purpose to nourish people and the planet.”

 

Rosa’s Thai secures Norwich site: Rosa’s Thai, the TriSpan-backed business, has added to its 2024 openings pipeline after securing a site in Norwich. The circa 40-strong brand has secured the split of the former Byron in the city’s Chantry Place. It is taking 3,100 square feet of space and joining the likes of Wagamama and The Real Greek on Chantry Square. Propel revealed in December that the Gavin Adair-led business was to take on the Bone Daddies site in Hill Street, Richmond. Rosa’s opened its latest restaurant last month, in Guildford. It also has an opening in Cheltenham scheduled for the end of the first half of 2024, plus openings lined up in Bristol and Reading. Thomas Rose, of P-Three, acts for Rosa’s.

 

Buy & Bite looking to grow again through franchising, eyeing expansion across UK: Healthy Japanese concept Buy & Bite is looking to grow again through franchising and is eyeing expansion across the UK. Taiwanese-based food specialist Han Dian founded Buy & Bite in 2018, with its debut site in Paul Street, Shoreditch. The business opened its second site, in Cowcross Street, Farringdon, just before the pandemic, as well as securing a third site, in Tottenham Street, Fitzrovia. According to its website, Buy & Bite is currently only trading from its Farringdon site, but the company is now looking for partners, investing between £100,000 to £250,000, to help with its growth plans. “Buy & Bite is a London restaurant business that’s now ready to expand by franchising and to share its passion for sumptuous food from the Far East that really tickles the taste buds,” a spokesman for the business told FranchiseInfo. “We have created a highly successful quick-service restaurant format, based on a menu that is focused on a select range of highly popular dishes originating from Japan, China and Korea; rice bowls, noodle bowls, bao buns and our signature dish, omurice. We are now ready to expand coverage across the UK. Working in conjunction with franchising specialists, we have developed a robust franchise package and now invite applications from those keen to own a successful quick service restaurant business to join our network of foundation franchisees. Buy & Bite is a management franchise – we are therefore seeking franchisees with the drive and determination to maximise the potential of a restaurant business comprising multiple outlets.”

 

Gaucho launches ‘let’s do VAT free Fridays’: Gaucho, which is owned by Rare Restaurants, is launching a “let’s do VAT free Fridays” offer to coincide with the spring Budget and the mayor of London’s “off peak Friday” campaign. The company said it is taking the political “bull by the horns” to address both the call for the chancellor to abandon the “tourist tax” in the spring Budget and the mayor of London’s campaign to bring back Friday trading in the capital. Diners who visit any of Gaucho’s ten central London venues any Friday during March will automatically enjoy a “VAT free lunch” as 20% will be removed from all à la carte dining bills between 12pm and 4pm. Martin Williams, chief executive of Rare Restaurants, said: “London restaurants have suffered from a double hit caused by the introduction of the ‘tourism tax’ and the ‘work from home’ culture. We call for chancellor Jeremy Hunt to abolish VAT for tourists in the spring Budget, and at Gaucho we are joining the mayor of London in offering a pro-active reason to come into town, this and every Friday during the month. After two outstanding years at Gaucho which have seen us grow sales more than 25%, we want to give back to Londoners and step in where the government is failing to do so.” Kate Nicholls, chief executive of UKHospitality, added: “It’s a perfect demonstration of what could be possible for venues if the chancellor acts on the united calls from hospitality to permanently lower the rate of VAT – lower prices, increased demand and busier high streets.”

 

National parks cafe operator acquired out of administration: Deep Beat Entertainment, which operates cafes at UK heritage sites and national parks, has been acquired out of administration. The company, which was founded by Louis Dixon, fell into administration in the face of mounting headwinds, with Howard Smith and Will Wright, of Interpath Advisory, appointed as joint administrators on 27 February 2024. The administrators said Deep Beat Entertainment’s revenue was significantly impacted by lockdowns during covid-19; compounded by the high-cost inflation seen in more recent times, which limited the company’s ability to pay creditors. The firm’s management team sought to undertake a review of possible sale or investment options but a solvent solution could not be found, leading to the decision to appoint administrators. Tom Swiers, head of the food and drink sector team at Interpath, said: “While there has been recent improvement in food price inflation, producers continue to come under pressure with rising costs, particularly the cost of labour, which is set to increase imminently with the forthcoming rise of the national living wage. There is no surprise, therefore, that this is being borne further down the supply chain by those operating in the foodservice segment.” Upon their appointment, the joint administrators concluded a sale of the majority of the business and assets to LCR Operations, of which Dixon is a director and shareholder. The deal sees all venues continuing to trade, with 121 staff members transferring to the buyer. Following the sale, the joint administrators are now sole shareholders of Park Life Resorts, a Devon holiday resort with several short and long-stay woodland lodges. The joint administrators are now seeking a buyer for this shareholding.

 

Tiny Rebel – we remain dedicated to exploring new opportunities for future bar openings: South Wales brewery Tiny Rebel Brewing Company has said it remains “dedicated to exploring new opportunities for future Tiny Rebel Bars across the UK” despite announcing the closure of one of its sites in Newport. The company operated three bars – the taproom at its award-winning brewery in Newport, one in Westgate Street in Cardiff city centre and another in High Street in Newport city centre. Tiny Rebel has now taken the decision to close the latter. The business said: “Since the start of the pandemic, we’ve witnessed significant challenges, particularly in Newport city centre, with diminishing footfall, escalating operating costs and limited government support for the hospitality sector post-covid. Regrettably, despite our best efforts, our city centre bar in Newport, which we’ve tirelessly worked to sustain over the past 18 months, has fallen victim to these challenges and is no longer financially viable. This was a tough decision, but one we had to make to ensure the future sustainability of our bar division. We are committed to supporting our staff through this transition, whether within our organisation or elsewhere. The Newport High Street bar will remain open until Sunday, 31 March. Since starting Tiny Rebel 12 years ago, this is the saddest day yet, as you never want to see a bar close, especially when it’s one that you love and started as a ‘pop-up’ idea nearly nine years ago. Rest assured that if we were able to pick up this bar and drop it into a new location, we would. As we navigate this difficult period, we're focused on securing the future of our bar division, ensuring its resilience against economic uncertainties. Rest assured, we remain dedicated to exploring new opportunities for future Tiny Rebel bars across the UK.”

 

Splendid Hospitality Group secures £232m loan to support capex work in hotel portfolio: Privately-owned operator Splendid Hospitality Group has secured a £232m loan to support future capital expenditure work in its 24-strong hotel portfolio. The funding has been provided by OakNorth in partnership with HSBC. Splendid Hospitality Group’s hotels cover the economy, midscale, upper midscale, boutique and luxury markets with brands including IHG, Accor, Marriott and Hilton. The club loan will support future capex works, including the extension of the five-star Hilton London Bankside in Southwark, adding a further 76 rooms. Nadeem Boghani, vice-chairman of Splendid Hospitality Group, said: “We are incredibly fortunate to operate hotels across the UK, with over seven different brands, as well as independent hotels. With the support of OakNorth and HSBC, we’ll be able to continue delivering the exceptional service and quality, as well as the extraordinary experiences our guests have come to know us for over the decades.” Splendid Hospitality Group’s hotel portfolio has more than 2,500 bedrooms. The business also operates 39 KFC restaurants and three care homes. 

 

KFC UK & Ireland appoints new chief legal officer: KFC UK & Ireland has appointed Ella Smith as its new chief legal officer. Having first joined KFC in 2021 as head of legal, Smith now leads its team of lawyers and will also sit on the UK & Ireland executive team. In her new role, Smith will be the chief legal counsel on KFC’s recently announced acquisition of 218 restaurants from EG Group, KFC’s largest franchisee in the UK and Ireland. She and her team will advise on all legal matters related to the transaction, which once completed, will see 7,800 EG Group team members come under KFC UK & Ireland management. She was previously with Uber UK & Ireland and advised on the launch of Uber Eats in the UK before going on to manage legal advice for the proposition across Europe, the Middle East and Africa. She also negotiated the global agreement between Uber Eats and KFC’s parent company, Yum! Brands. Smith succeeds Sarah MacDonald, formerly chief legal officer for KFC in the UK & Ireland and pan-Europe. Meghan Farren, general manager for KFC UK & Ireland, said: “Ella is perfectly placed to lead our legal team during this exciting phase of KFC’s growth, as we acquire the previously franchised restaurants from EG Group. I look forward to working alongside her to deliver on this huge opportunity for our business in the UK and Ireland.” KFC has previously announced plans to open a further 500 restaurants across the market by 2030 and said it was now close to being a £2bn business in the UK.

 

South London bakery crowdfunding for debut bricks-and-mortar site: South London bakery Bunhead Bakery has launched a crowdfunding campaign for its debut bricks-and-mortar site. The business has so far raised just over £5,000 of its £12,000 target on Crowdfunder with 22 days left. Bunhead Bakery was founded four years ago by Sara Assad-Mannings as a home-based business and is looking to open its first site at 146 Dulwich Road in Herne Hill. “What started as an opportunity to spread a little joy during lockdown has taken on a life of its own and grown in ways I never could have imagined,” Assad-Mannings said. “Bunhead is officially making its biggest step yet – joining forces with a best friend, we’re finally looking towards opening our first bricks-and-mortar site. Expect more Palestinian bakes, food and flavours, good coffee, local producers, and always, the buns that got us here. We aim to create good wholesome food that not only tastes amazing, but also connects people to the rich history and flavours of Palestine. We believe that by sharing culture, we can build awareness while bringing people together in a spirit of joy and celebration. In a world that feels so polarised, Bunhead is a celebration of togetherness and liberation.” Sara Assad-Mannings is one of eight female founders spotlighted by Be in Hospitality’s Lorraine Copes in her column for Propel’s International Women’s Day Friday Opinion, which will be sent at 11am on Friday (8 March).

 

WatchHouse opens Canary Wharf site: Specialty coffee concept WatchHouse, which completed a $10m (£7.9m) Series A fundraising round in December to continue the company’s rapid growth in the UK and US over the next 36 months, has opened in London’s Canary Wharf. The group, which is gearing up to make its international debut in New York, has opened a site in Cabot Place. It is the 18th site for the business, which has further openings lined up in the capital over the next six months. It will open in Marble Arch in May, in Hampstead Heath in June, in Fitzrovia in July and a further site in Canary Wharf in August. Led by WatchHouse founder and chief executive Roland Horne and advised by Bosham Capital Advisors, the new funds were raised from a “high-quality” mix of family office and high-net-worth investors in the UK, Europe, Asia, South America and the US, with existing follow-on support from venture capital backers, Edition Capital. The funds will primarily be deployed to drive continued expansion of its estate in the UK and New York, with the business targeting more than 500 outlets globally by 2033. The funds will also be used to expand WatchHouse’s e-commerce platform.

 

Breakfast-focused concept Bangers to open first bricks-and-mortar site next month: Breakfast-focused concept Bangers is to open its first bricks-and-mortar site, in London’s Shoreditch, next month. Following a year-long residency operating as a delivery-only restaurant, serving more than 50,000 breakfasts last year, founders Will Rhys and Will Mogoseanu are launching the outlet in Leonard Circus on Friday, 19 April. As well as its signature smashed sausage sandwiches, the menu will include sides such as hash browns and homemade baked beans, alongside seasonal yoghurt pots and vegan-friendly overnight oats. The drinks list will feature barista-made coffee, breakfast smoothies and Bloody Mary’s. Rhys and Mogoseanu said: “At Bangers, we’re all about delivering an unforgettable breakfast experience. We realised that breakfast was, almost always, an afterthought for the current quick service operators in London, so we set out to change that and do breakfast better than anyone else. We’ve spent countless hours perfecting our menu, sourcing the finest ingredients, and creating a warm and inviting atmosphere that will keep our guests coming back for more.” At the end of last month, Island Poké founder James Gould-Porter joined Bangers as a non-executive director.

 

Pizza Pilgrims secures B-Corp status: Pizza Pilgrims, the pizzeria brand, has become a certified B-Corp. These are companies verified as meeting the high standards of social and environmental performance, transparency and accountability. The company said: “Over the last two years, the whole team at Pizza Pilgrims has been working to secure B-Corp accreditation. To achieve this, Pizza Pilgrims had to display verified performance, accountability, and transparency, on factors such as employee pay and benefits; engagement with its community; positive practices in the supply chain; and a long-term commitment to reduce its environmental impact. To Pizza Pilgrims, B-Corp is much more than a certification, it is a strategic pillar that will influence the current and future business. After turning ten years old in August 2023, Pizza Pilgrims is embarking on the next stage of its exciting journey, with B-Corp at the heart of all that it does.”

 

Turkish couple to launch cocktail bar concept in east London: Turkish couple Selin Duren and Cem Ozden are launching a cocktail bar concept in Shoreditch east London. The pair, who have worked in the music and nightlife industry across Europe, are opening Chiave in Redchurch Street on Tuesday, 12 March. Meaning “key” in Italian, Chiave will be split across two floors, with the main focus on bespoke drinks alongside carefully selected music by renowned DJs. A selection of nibbles will be served, paired with the cocktail menu and select wine list. The basement will feature a dance floor space that can hold around 30 people. The music programming here will have both international and local DJs “spinning genres such as house, minimal techno, electro funk and hip hop and will alternate from secret ticketed gigs to an open house for everyone to enjoy”.

 

Flat Iron confirms summer opening for Manchester site: Flat Iron, the Piper-backed affordable steak concept, has confirmed its site in Manchester’s Deansgate will open this summer. Propel revealed last April that the Tom Byng-led business had taken a 4,000 square-foot space at 200-204 Deansgate, previously occupied by outdoor clothing and equipment brand Blacks. The 150-cover restaurant will now open this summer, located over two floors in a grade II-listed building dating back to 1908. Flat Iron’s founder, Charlie Carroll, said: “Opening a restaurant in my home town of Manchester is a big deal to me and a long time coming. I fell in love with a beautiful historic building on Deansgate in 2018, and six years on we are finally opening this summer. I am passionate about delicious beef and proud to bring Flat Iron to the city where I grew up, and where so many of my friends and family live.”