|
|
Mon 25th Mar 2024 - Arc Inspirations secures £7m investment to accelerate UK expansion, plans to almost double estate by 2029 |
|
Arc Inspirations secures £7m investment to accelerate UK expansion, plans to almost double estate by 2029: Arc Inspirations, the premium bar operator, has secured a £7m investment to accelerate its expansion across the UK. The Banyan, Box and Manahatta operator has secured a £4m loan from its banking partner, HSBC UK, alongside a £3m equity injection from its shareholders, including BGF, which has backed the business since 2022. The funding will aid the 21-strong company’s ambitions to deliver at least four new openings per year over the next five years, and also fund a major programme of refurbishments at existing Manahatta sites. Arc’s co-founder and chief executive. Martin Wolstencroft, said: “We’re grateful to the HSBC UK team and to our shareholders, who continue to believe in our business and support us on our ambitious growth journey. Together, we have achieved a number of key milestones, with four successful new site openings in 2023, and our most successful festive period to date. Each success is testament to our team and culture, and I thank each and every member of our team as we continue to build what we believe is the best bar business in the country.” James Sawley, head of retail and leisure at HSBC UK, added: “Arc Inspirations is a homegrown success story and we’re delighted to build on our relationship and provide further investment to this resilient and ambitious business. Arc has already achieved impressive scale, and our support has enabled Martin and his team to deliver significant growth in recent years. With a strong balance sheet, outstanding leadership team and proven concepts, we are confident in Arc’s ability to succeed in new, untapped markets across the UK, and we wish the team every success with the next stage of their exciting growth plans.” Arc next opening will be its debut Scottish site, Manahatta Edinburgh – the brand’s tenth venue – launching later this summer. The company is also eyeing further launches in London, Liverpool, and Cardiff in 2024, creating around 300 new jobs. In 2023, it opened Box sites in Nottingham and Birmingham, as well as two Manahattas, in Newcastle and Sheffield. Arc operates a cluster model, running premium large-scale bar sites, under complementary brands in key cities in the Midlands and the North of England. It currently employs 1,000 people and its growth plans mean it will recruit a similar number again over the next three to five years. In January, Propel revealed the Arc Inspirations had reported a record December, with 20% like-for-like sales growth. In addition, 12 of the company’s 21 sites recorded their best ever sales week during the week commencing 11 December. Arc Inspirations features in the Propel Turnover & Profits Blue Book. Its turnover of £40,813,939 for the year ending 26 March 2023 is the 229th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.
Premium Club members to receive videos from Propel Multi-Club Conference: Premium Club members are to receive all the videos from last week’s Propel Multi-Club Conference at 9am on Friday 5 April. They will include Nisha Katona, founder of Indian street food concept Mowgli, talking about the challenge of keeping close the brand’s ethos and culture intact as it grows; Sir Tim Martin, founder and chairman of JD Wetherspoon, discussing the current state of the UK pub market, and the group’s approach to corporate governance with Emma Gibson, one of the company’s ‘employee directors’; Adil Group chief executive Raja Adiltalking about life as a franchisee of Burger King, Costa Coffee, KFC and Taco Bell; Steve Moore, founder and chief executive of Red Engine, the Flight Club and Electric Shuffleboard operator, explaining how the company has become a £100m-turnover business; Marcello Distefano, managing director of restaurant group San Carlo, speaking about the challenges of building and evolving a premium casual-dining business; Charlie Elek, managing director of Lucky Voice, setting out how the company is taking a unique approach to evolving its offer; Stephen Freeman, chief executive of Freeman Event Partners, discussing the role F&B is playing in the evolution of the consumer/fan experience; Alastair Scott, founder of S4labour, leading a discussion with Gary Cowles, director of operations at Super8 Restaurants (Brat and Mountain), author Dulcie Swanston, Adam Martin, managing director of Tesco Hospitality, and Dan Hawkie, chief commercial officer at TiPJAR, on improving employee engagement; Graeme Smith, managing director at AlixPartners, mapping out the current investment landscape and how we are moving into a new stage of the funding cycle; William Gordon-Harris, chief executive of Knoops, on plans for the ‘Starbucks for quality chocolate drinks’; Florian de Chezelles, co-founder at The Salad Project, talking about launching a next generation salad bar concept into the highly competitive central London market; and Rob Huysinga, co-founder of all-day restaurant and bar concept Bubba Oasis, discussing the opportunities for the ‘clubhouse’ concept. Premium Club members also receive access to five other databases: the Turnover & Profits Blue Book, the New Openings Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who’s Who of UK Hospitality. Plus, 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.
Hospitality employees happier at work than they were despite mid-level pay squeeze: Salaries in the hospitality sector have seen a squeeze at the mid-level, with a larger number of workers earning less than £30,000 (up from 30% in 2023 to 37%) and a rise in those earning £60,000 or more (up from 13% in 2023 to 16% in 2024), according to a major survey of hospitality employees. The UK’s Largest Hospitality Salary Survey 2024 – created by KAM in partnership with Access Group, the British Institute of Innkeeping, Hospitality Jobs UK, Montgomery Group and Otolo – reveals a decrease in salary levels across most sectors of hospitality with the exception of hotels, where average salaries have risen from £42,100 to £44,800. According to more than 1,300 UK employees taking part in the annual survey, the average salary in fast food/cafes has dropped this year from £42,700 to £37,000, from £41,200 to £40,200 in full-service restaurants, and from £41,200 to £40,200 in pubs, clubs and bars. The survey, now in its third year, found a decrease in salaries across the main job roles with the exception of general management, and a decrease for employees at mid-career level and lower, compared with an increase in average salaries for those with 13-plus years’ experience. Employee satisfaction amongst respondents had risen, however, with the number of workers reporting a healthy work/life balance up from 51% in 2023 to 59% this year. Some 69% of workers report being happy in their current roles, up from 62%, while 62% expect to be working for the same company in 12 months’ time, up from 54%. An impressive 82% of employees say they would recommend a career in hospitality, compared with 74% that would have done so last year. While receiving a fair salary remains the most important benefit cited by employees, the survey reveals employees are placing more emphasis on other benefits including holiday entitlement (cited by 92% of respondents as very or quite important), training and development sessions (88%), flexible hours (83%) and mentoring (75%). The provision of ‘softer’ benefits has also risen in importance such as well-being sessions (up 6%), discounts on eating and drinking out (up 10%) and counselling (up 9%). The survey also found a sharp decrease in pay for 16 to 18-year-olds but an increase for 19 to 21-year-olds and 36 to 54-year-olds. It said 40% of hospitality workers are clocking up 7.5-plus additional hours per week, down from 43% in 2023, although more workers are doing up to 2.5 hours over and above their contracted hours, from 26% in 2023 to 30% in 2024 – and that 62% of employees are not paid extra for working additional hours. Furthermore, 50% say they have received sufficient training to feel fully qualified for their role, although 35% saying they haven’t had as much training as they would like to in order to feel confident. Access Group’s director of learning, Jamie Campbell, said: “It seems the UK’s hospitality sector has worked at improving those areas it was traditionally weaker on – so training and additional benefits. While there has been a slight decrease in average salaries across most sectors, improved employee benefits are going some way to make up for this, prompting more employees to be happier in their work. It’s vital this continues in order to retain and attract staff going forward.” Pubs choosing to close at 8pm or not open on quieter days to save costs: Pubs across Britain are having to close as early as 8pm and close on quieter days as they struggle to deal with the cost-of-living crisis and skyrocketing energy bills. A poll of British Beer and Pub Association (BBPA) members found 32% of pubs had reduced their hours due to high costs. This follows previous figures from the BBPA that 509 pubs shut down in 2023, and by June this year, an estimated 750 could close. BBPA chief executive Emma McClarkin said: “They have been grappling with a multitude of challenges. The decision to reduce hours is not one pubs want to make – it is a survival strategy in an unsustainably tough environment.” Speaking to the Daily Mirror, pub owners laid bare the scale of the issues facing the sector. The owner of the The Hawke in Hackney, Greg Kirk, calls last orders as early as 8pm, and on quieter days he doesn’t even open. He said: “Sometimes I don't even feel like I am running a pub, because I believe a public house should be open seven days a week until at least 11pm. But it costs me way too much in terms of electricity and wages to keep the pub open when nobody is coming in.” At The Old George Inn in Sykehouse in Yorkshire, landlady Rosie Nagaty, who runs the pub with her husband John, claims it costs the pub £250 just to open. “We can't afford to pay staff to stand in an empty pub with the heating and lights on and no customers,” she said. “If customers aren’t in the pub by 8.30 or 9pm, we have learned they don’t arrive any later.” Campaign for Real Ale chairman Nik Antona said: “Last orders at an earlier time is preferential to the pub closing its doors for good and the local community losing its central hub. The fact that venues are being forced to make this decision should serve as a harsh wake-up call for government to support UK pubs, lest we lose them forever.”
Plans for new 28,000 sqm, 12-storey dark kitchen and food hall hub in West London get green light: Plans for a new 28,000 square-metre, 12-storey dark kitchen and food hall hub in West London have been given the go-ahead. The project, featuring 260 dark kitchens over ten storeys, plus a food court and public space on two lower floors, has been put forward by architecture firm Dowen Farmer. Founded in 2017 by James Dowen and Tom Farmer and based in Peckham, south London, the company is behind several residential projects, mainly in and around the capital. Called Portal Way, it will be located in the road of the same name in the Park Royal/North Acton area of West London and provide 1,200 new jobs. The idea is for food from the kitchens to be ordered by the public via apps and “shuttled down to the market space via smart food lifts”. The project has been unanimously approved by the Old Oak and Park Royal Development Corporation (OPDC)’s planning committee.
|
|
|
|
|
|
|