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Morning Briefing for pub, restaurant and food wervice operators

Tue 4th Jun 2024 - Propel Tuesday News Briefing

Story of the Day:

Toca Social to partner with Westfield owner to expand across Europe, plans 20-plus sites: Toca Social, the interactive football bar concept, has entered into a partnership with shopping scheme owner Unibail-Rodamco-Westfield (URW) to open multiple venues throughout Europe. Alex Harman, Toca Social president, told Propel that the company expects to open 20-plus Toca Social venues in continental Europe over the next few years. The first two locations under the partnership are planned to open in 2025 and will occupy a 3,495 square-metre space at Westfield London and a 2,400 square-metre space in the recently expanded Westfield CNIT in La Défense, Paris. The two companies said they expect to announce additional locations in the future. Erik Anderson, Toca co-chairman and founder and chief executive of WestRiver Group, said: “Building off the huge success of Toca Social at London’s O2, we are delighted to partner with URW to bring this one-of-a-kind football experience, which transforms the world’s largest sport, to a global audience.” Harman added: “Our shared commitment to innovation and creating unforgettable experiences will shape the future of how people engage with football throughout Europe, the world’s largest football market.” Toca Social operates at The O2 in London, which the company said was delivering “strong profitability” and attracted more than 300,000 visitors in 2023. Last month, the concept, which was founded in 2016 by two-time US World Cup player Eddie Lewis, opened at Birmingham’s Bullring centre, taking over a former Debenhams site. Toca has received investment from England captain Harry Kane, world chess champion Magnus Carlsen and boasts England Women’s captain Leah Williamson and US Women’s National Team sisters Alyssa and Gisele Thompson as stakeholders. Last August, Harman told Propel that Toca Social was aiming for 20-30 sites, and that it was “just scratching the surface of demand in London”. He also revealed plans to launch in Westfield London. Toca also said last year it would make its international debut with an opening in Dallas. On its US expansion plans, Harman told Propel: “We will be making an exciting announcement on our US projects in the coming weeks. Our Mexican franchise partner is set to begin construction on its first venue in Monterrey this summer. We are also exploring franchise opportunities in other global markets.” He said that trading is “going well, with significant growth in revenue and profitability”. He added: “We are excited about the impact of the upcoming European Championships as Toca Social has become one of the most popular places to view big sporting moments.”
 

Industry News:

Variety of cafe and bakery operators to feature in next New Openings Database being released to Premium Club members on Friday: The next Propel New Openings Database will be sent to Premium Club members on Friday (7 June). The database will show the details of 238 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 14,643-word report on the 238 new additions to the database. The database includes new openings in the cafe and bakery sector such as Buns from Home opening its 16th site in London’s Charing Cross Road; gelato shop The Dreamery, set to open in Islington, London; and EL&N Deli & Bakery, which is gearing up to launch in London’s Covent Garden. Premium Club members also receive access to five other databases: the Turnover & Profits Blue Book; the Multi-Site Database, produced in association with Virgate; 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 Propel paid-for events including 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.
 
Deliveroo to mark Pride Month with launch of LGBTQIA+ chef mentoring programme and sponsorship fund: Deliveroo will mark Pride Month with the launch of a LGBTQIA+ chef mentoring programme and sponsorship fund. The Open Kitchen will see up-and-coming chef talent from the LGBTQIA+ community taught the skills and techniques needed to create signature dishes before serving them to the public via Deliveroo. Open Kitchen will run from Wednesday (5 June) to Thursday (6 June), with professional chefs from LGBTQIA+ owned Deliveroo partners, The Athenian and Nanny Bill’s, behind the mentoring. Following a hands-on masterclass, dishes created by the trainee chefs will be made available to purchase on Deliveroo that evening. The programme has been developed in collaboration with Queers in Food and Beverage, a network linking LGBTQIA+ people who work in the hospitality industry. At the same time, Deliveroo has launched its Open Kitchen Fund, which will sponsor aspiring talent in culinary training. In its inaugural year, all sales from The Open Kitchen restaurant will go towards supporting five members of the community in pursuing their own career in restaurants, with Deliveroo matching total sales from the restaurant. 
 

Company News:

Exclusive – Gail’s sets sights on multiple travel hub locations: Fast-growing Gail’s Bakery has set its sights on opening in multiple travel hub locations with the company’s first scheduled to open in Liverpool Street station this summer, Propel has learned. It is thought that the opening of the 950 square-foot outlet at Liverpool Street will be one of several travel hub destinations the brand will open this year, with a few additional sites still being finalised. The company, which is backed by Bain Capital Credit and Ebitda Investments, a fund led by serial restaurant investor Henry McGovern, said the move will see Gail’s extend its high-volume, high-speed model to offer “discerning on-the-go customers multi award-winning craft baking and specialty coffee, without sacrificing speed”. In its fastest bakeries, more than 95% of the brand’s drinks are served in under two minutes, with the majority of its freshly baked menu available to grab and go throughout the day. Marta Pogroszewska, Gail's managing director, told Propel: “We are delighted to be opening one of our neighbourhood bakeries in Liverpool Street station. We look forward to bringing craft baking and speciality coffee to the community.” On Thursday (8 June), the company will open its first in-store bakery counter with supermarket company Waitrose – a 280 square-foot site at the store in London’s Canary Wharf. Waitrose first partnered with Gail’s in November 2022 to launch three bakery concessions as part of a limited trial. After strong sales, the concessions were rolled out to 64 Waitrose stores in April 2023, leading to sales of Gail’s baked goods in Waitrose rising 35% annually. The circa 125-strong Gail’s, which made its debut in the north west last year with a number of openings in and around Manchester, made its debut in the south west last month with a launch in Bristol. Propel understands Gail’s will open in London’s Paddington Square and Woolwich in the next couple of weeks, while it also has openings lined up in Chester and Petersfield, Hampshire.
 
Pret cancels plans to open in Israel: Pret A Manger has terminated its franchise agreement with Tel Aviv-based retailer Fox Group and restaurant operator Yarzin Sella Group to launch in Israel. In a statement to the Tel Aviv Stock Exchange, Fox Group said Pret had activated a “force majeure” clause – which allows a party to negate contractual obligations due to extreme and unforeseeable circumstances – amid the ongoing Israel-Gaza conflict. Fox Group stated that Pret alleged the war was affecting the “company’s ability to carry out the preliminary actions needed to open operations as set out under the license agreement”. A Pret spokesperson told Propel: “We have taken the difficult decision to end our current agreement with Fox Group and Yarzin Sella Group. We had tried to delay this decision for as long as possible, but the significant ongoing travel restrictions have meant that our teams have not been able to conduct the checks and training needed to set up Pret in a new market. Under the terms of Pret’s travel insurance, any colleagues travelling to Israel would not be insured. We want to express our sincerest thanks to the teams at Fox Group and Yarzin Sella Group, who have been supportive and extremely collaborative partners.” Reports in Israeli media said that Fox Group is planning to oppose Pret’s decision and is preparing to reject the brand’s claims. Pret announced the ten-year franchise deal in January 2023 and said it planned to open 40 licensed stores in Israel in the first decade of the agreement. A debut site under the agreement was scheduled to open in the Tel Aviv Port district at the end of this year. As part of the agreement of principles, it was agreed a joint Israeli company would be established, to which the franchise would be granted, with Fox holding 75% and Yarzin Sella Group holding 25% of its share capital. Pret is now serving customers in 18 markets, up from four in 2018. Last week, it struck a deal with franchisee A&W Food Services of Canada to expand its presence in the country. 
 
Genting disposes of trade and assets of casino, customer visits and revenue ahead of the prior year led by robust London performance, VIP market slow to recover: Casino operator Genting has disposed of the trade and assets of one of its 32 UK casinos. The company reported the disposal in post year-end events in its accounts for the year to 31 December 2023, but does not confirm the site in question. It comes after the company put the UK’s oldest casino, Crockfords in London’s Mayfair, on the market for £70m at the end of last year – having closed it in October 2023 after 195 years. “During the year, the group took the difficult decision to close Crockfords, Genting UK’s prestigious Mayfair casino, and place the property on the market,” the company said in its accounts for the period. “Crockfords reopened in 2022 as the international travel restrictions imposed during covid began to lift, however the VIP market it served has been slow to recover.” The group said it continued to perform strongly, “despite pressures on customers discretionary spend and the tightening of the regulatory environment”. Total number of visits increased by 13% to 2,680,000 from 2,366,000 but average spend per customer decreased from £104 to £96 due to the decline of the VIP market in London and a policy of driving a greater volume of customer visits in certain venues. Director Paul Willcock said: “Customer visits and revenues were all ahead of the prior year across all its operating divisions. In London, where Genting UK operates four casinos (excluding Crockfords), player volumes were robust, despite ongoing international travel restrictions. Resorts World Birmingham continued to perform strongly in the current year, with continued growth in revenue on prior year. The Genting Hotel was the market leader in the area and the introduction of new leisure offerings has helped to drive profitable growth at the resort.” Revenue grew from £271.6m to £287.1m during the year. Of this, £116.1m came from London and Cairo (2022: £114.1m), £137m from core operations (2022: £125.8m), £33m from Resort World Birmingham (2022: £30.8m) and £1m from corporate (2022: £900,000). Further analysis shows £252.9m came from gaming (2022: £241m), £9.9m from hotel and spas (2022: £9.8m), £17.6m from food and beverage (2022: £14.5m) and £6.7m from leases (2022: £6.3m). A pre-tax profit of £12.3m (£10.5m before exceptional items) in 2022 dropped to £10.3m (£7.8m before exceptional items). Exceptional items included losses on closure and termination/redundancy costs and gains on a write back of licences. No dividends were paid (2022: nil). The group has targeted increasing its market share in London and expanding its leisure offering at Resorts World Birmingham.
 
GDK to pass 150-store landmark in 2024 including first drive-thru, to further roll out travel hub locations, smaller stores and breakfast offer: German Doner Kebab (GDK) chief executive Simon Wallis has told Propel it will pass the 150-store landmark in 2024 as it targets filling “bags of white space” outside London, including its first drive-thru. He said the brand also plans to further roll out its travel hub locations, smaller format stores and breakfast offer, as it works towards its target of 300 stores by 2028. GDK currently has 140 UK stores, having opened four so far this year – in Bristol, Bedford, Epsom and Hempstead Valley – all of which are performing ahead of the rest of the estate. “I won’t say when exactly, but we should comfortably surpass that (150) milestone this year,” Wallis told Propel. “In the short term, we’re very confident we’ll see 300 by the end of 2028. We’ve opened four so far this year and they have traded really well – 17% ahead of brand average in terms of average unit sales. All are trading better than our existing estate, which means we’re opening in the right places with the right franchise partners. There’s still bags of white space for us to go after in the UK. We are relatively well penetrated in London (54 restaurants), but outside of London, there’s bags of opportunity. We’ve only got one store in Liverpool, Leeds and Newcastle, and two in Manchester, central Birmingham and Glasgow. We’ve not got one in Oxford or Cambridge. There is plenty of opportunity in higher conurbation areas where we can put more GDKs in, and that’s where we will focus first. I’m very confident we’ll open another in Leeds in the next few months as we’re on site. The other thing that is relevant as we build out is we are developing more flexibility in our restaurant formats. We anticipate we will launch our first drive-thru in the early part of 2025, in some part because we learnt a lot from our service station model of how we can serve more customers more quickly. Smaller sites too, where we can infill where the brand already has a flagship presence.” In December, GDK launched both its first motorway services site and breakfast offer, at Baldock Services on the A1 in Hertfordshire, and both concepts will be rolled out further. “I’m personally delighted with the sales results at Baldock, we’re trading really well,” Wallis said. “More importantly, Extra, which operates the service station, is also really pleased as is our franchise partner. Breakfast sales are continuing to build and range from anywhere from 2.5% to 7% of system sales in the two stores in the trial. I’m also pleased that we’ve driven down speed of service time, and that’s given us more confidence that we have come up with a model that can work in more similar type stores – so more service stations or more travel hubs moving forwards. We’re very confident that we’re demonstrating the brand has flexibility across all dayparts, and we will actively roll breakfast out across more stores over the balance of this year.”
 
Daylesford sees turnover pass £50m but losses increase: Lifestyle organic brand Daylesford, which operates farm shops and restaurants in London and the Cotswolds and is owned by Lord and Lady Bamford, has reported turnover increased 2% to £50,232,993 for the year ending 30 April 2023 compared with £49,153,094 the previous year. Ebitda stood at minus £1,794,999 compared with positive £1,413,800 the year before as the company bore the cost of historically high inflation that impacted the UK economy particularly in food, labour and energy costs. Pre-tax losses rose to £3,648,862 from £291,100 the year before. Staff turnover rate dropped from 57.8% to 53.1%. The company was in a net current liabilities position of £34,341,202 (2022: £31,036,800), which included £51,105,948 owed to the company’s parent, BHoldings, also owned by Lady Bamford, and she confirmed she will provide support to the company to repay these debts should they become due. In her report accompanying the accounts, Lady Bamford stated: “Our retail stores performed strongly with growth against the previous year of 10%. E-commerce delivered modest growth of 5% but wholesale declined 5%. In addition, building work is well advanced on Heritage House, a new events space based at the Daylesford Farm site, which will further enhance the attraction of the site and provide further growth opportunities.” The company did not receive any Coronavirus Job Retention Scheme payments (2022: £38,600) but did receive £43,776 (2022: £288,023) of business rates relief. No dividend was paid (2022: nil).
 
Hollywood Bowl CEO – we remain confident in our ability to open average of at least three new UK sites a year: Stephen Burns, chief executive of Hollywood Bowl Group, the UK’s largest ten-pin bowling operator, has said that the business remains confident in its ability to continue to deliver on its plan of an average of at least three new UK openings a year. The business, which reported record first-half group revenue of £119.2m in the six months ended 31 March 2024 (2023: £110.2m), currently operates 71 sites in the UK and said it was well positioned to grow group estate to more than 130 centres. Burns said: “We are currently on site at new centres in Westwood Cross in Kent and Colchester, at the Northern Gateway leisure complex, combining 26 bowling lanes, mini-golf, bar, diner and an amusement offer. During the first half of FY2024, we added one centre to the UK estate. Lincoln Bowl, the 20-lane family owned and operated centre was acquired in October 2023. Located on the outskirts of the city of Lincoln, the centre was a well operated family entertainment business in a strategically important location, filling a location gap between our centres in Sheffield, Derby and Leicester. Following a rebrand and extensive refurbishment that also included a new roof, this new-look Hollywood Bowl boasts a large amusement space, combined reception, bar and diner with 20 lanes of state-of-the-art bowling served by pins on strings. We are very pleased with the early trading performance and customer feedback and are confident that this site will deliver returns in line with our expectations. Since the start of the second half of the year, we have opened a new Hollywood Bowl in Dundee, a key market in Scotland at a quality leisure park, co-located with the number one cinema in town and a restaurant offering. This centre opened in late May 2024 and the early trading performance has been encouraging. Our new centre pipeline is strong with six already signed and more in heads of terms and legals stages. We remain confident in our ability to continue to deliver on our plan of an average of at least three new UK openings a year.”
  
Red Engine opens third Flight Club in Australia: Red Engine, the Flight Club and Electric Shuffle operator, has opened the latest international venue under its competitive darts concept, in Sydney. The 9,300 square-foot, New South Wales venue becomes the third Flight Club to open in Australia, where venues are owned and operated by partner NightOwl Entertainment. The latest Australian venue follows the success of Flight Club Perth and Fremantle, which opened in 2021 and 2023 respectively. Almost ten years on since the launch of the first Flight Club, which opened in London’s Shoreditch in 2015, the brand now has 21 venues across the UK, Australia and the US. The addition of Flight Club Sydney takes the Red Engine and partners’ total global estate to 26. In 2024, following Sydney, Red Engine will open Electric Shuffle Manchester this month, followed by Electric Shuffle New York, Flight Club Liverpool and Flight Club Oxford. With the addition of Flight Club Philadelphia, Flight Club Washington, and Flight Club Melbourne, being opened by Red Engine’s international partners, the global Flight Club and Electric Shuffle venue portfolio will increase to 33. Red Engine chief executive Steve Moore, who co-founded Flight Club and Electric Shuffle, said: “We couldn't be prouder and more excited to introduce Flight Club to Sydney in partnership with NightOwl Entertainment. Some 17,000km from London, where this beautiful journey began, we are delighted to share some Flight Club magic with the people of Sydney and look forward to bringing them many moments of unexpected, ridiculous joy.”
 
Warrens Bakery reports sales ‘showing further growth’ following 10% rise in FY23: Cornwall-based Warrens Bakery has reported further sales growth following a 10% rise in retail sales in the year to 30 June 2023. The company’s turnover grew from £12,496,401 to £13,712,278 during the period. Its pre-tax profit was down from £2,741,598 in 2022 to £328,588. “Retail sales grew by £1,216,214, a 10% increase on the previous year, with one new store being opened and continued growth in existing outlets,” director Mark Sullivan said. “Margins reduced by 2.4% as a result of absorbing some of the high inflation in product costs and overheads were also higher due to inflation resulting in a reduction in profitability. Post year-end, sales are showing further growth on last year. New stores were opened at Barnstaple and Dartmouth in July 2023 and a further site at Bath Spa station in November 2023.” No government grants were received compared with £12,584 in 2022. Rental income increased from £12,105 in 2022 to £14,114. Adjustments relating to its company voluntary arrangement (CVA) showed a loss of £34,215 under exceptional items (2022: £1,905,300). “The amount relating to the CVA relates to the final adjustments to the CVA creditor,” the company said. “In the previous year, the balance was the difference between the carrying amount of the financial liabilities extinguished and the new financial liabilities recognised under the agreement.” The company entered its CVA in December 2019 and exited it in August 2022. 
 
New food hub opens in Frome featuring concept from Monty’s Deli co-founder: A new food hub has opened in a former train station warehouse in Frome, Somerset, which includes a concept from Owen Barratt, who co-founded Jewish soul food trader Monty’s Deli. Barrett has launched Owen’s Sausages & Hams at the At The Station scheme. After lockdown forced Monty’s Deli to close, Barrett moved to Somerset with dreams of starting a smallholding; but found the existing small-scale, high welfare farms the ideal resource to reinvent his deli past. Owen’s Sausages & Hams is inspired by his culinary background and the “sausage culture” prominent in Nordic and Germanic countries. Amy MacFayden and Owen Postgate opened the original Rye Bakery in Frome town centre in 2017. They have moved bakery production to a unit in At The Station to supply the café and market stalls and evolved the business into a shop and café offering freshly baked goods, speciality coffee, woodfired pizza and a wine bar and bottle shop. Other outlets at the scheme include The Cheese Lord and 11 Chillies Express. 
 
Timpson family-owned pub company reports turnover boost, Morzine hotel set to undergo major development: Flock Inns, which is owned by the Timpson family, has reported turnover increased to £5,822,682 for the year ending 30 September 2023 compared with £5,515,019 the previous year. The business, which was incorporated in June 2020, operates three pubs – The White Eagle and The Oyster Catcher in Anglesey and The Partridge in Cheshire – along with Le Tremplin Hotel in Morzine, which it acquired in December 2022. Pre-tax profit fell to £5,313 from £174,113 the year before. Timpson is a family-owned group that was founded in 1865. The three-star Le Tremplin Hotel was established in 1936 by Jeanne and Gaston Taberlet and was one of the first to be set up at the Morzine resort. The hotel also features the Tremplin restaurant, which offers a menu of gourmet dishes alongside pastries, desserts and other sweet treats. Over the next two years, Le Tremplin will undergo a major redevelopment to upgrade the hotel and create “Morzine's focal point of acres ski and amazing hospitality”. The company added its pubs have all benefited from recent investment. For the year to 30 September 2023, the Timpson group posted pre-tax profit of £38.3m (2022: £40.7m). Turnover increased from £298m to £332m.
 
The Savvy Baker to double in size within the space of a month: The Savvy Baker, the Leeds café concept, is to double in size, with two new openings within the space of a month. The brainchild of Savannah Roqaa, who built online brownie “care package” delivery business Savvy Baker during lockdown, the business already operates two sites in Leeds – in Lidgett Lane and Bradford Road. The business has now lined up openings at Swinegate in York and next to H&M in Chesterfield. Having started out producing 30-40 boxes of brownies per week from her kitchen, Roqaa’s recipes soon earned her a large social media following, including 50,000 followers on Instagram. She then moved on to hosting pop-ups and small business events before opening her first cafe. On the York opening, Roqaa, who co-founded the business with Jordan Simms, said: “We’re thrilled to finally open in York. From starting in my kitchen during lockdown to seeing huge queues at our first pop-up in Leeds, the journey has been incredible. Our fans in Leeds have been amazing, and we can’t wait to share our passion for brownies and unique drinks with the York community.”
 
McDonald’s CosMc’s launches loyalty programme: McDonald’s has launched a loyalty programme for CosMc’s, its fledgling, small-format, beverage-led restaurant concept. According to the Restaurant Dive website, the app is currently available for download and offers consumers a variety of discounts and promotions at the snack-based McDonald’s subsidiary. CosMc’s loyalty members earn ten points for every dollar spent, with 400 points amounting to a $2 discount – an effective 5% discount – that the company said are stackable. Members also receive a free drink upon signing up and a free menu item on their birthday. The app, launched while the initial phase of CosMc’s testing continues, may indicate McDonald’s confidence in the drink-forward concept. At the same time, as the brand is only available in four locations – Bolingbrook in Illinois, and Dallas, Watauga, and Arlington in Texas – with six more slated to follow in Texas during this phase of testing, the loyalty app may be intended to generate buzz and help CosMc’s identify any technical issues with its digital ordering systems. The brand specialises in drinks like energy bursts, frappes, iced tea, lemonade, slushies and cold brews. The menu also includes a few sandwiches and baked goods, as well as signature McDonald’s offerings like the McFlurry and Egg McMuffin. 
 
A Rule of Tum to open first pub and largest site to date, plans third Maneki Ramen site: Herefordshire restaurant company A Rule of Tum is to open its first pub, and its largest site to date, next month, in Gloucester. The business, which was founded in 2013 by brothers Edwin and Dorian Kirk, will open the 300-cover Dr Foster’s restaurant and bar next month, at Gloucester Docks. A Rule of Tum currently operates The Bookshop in Hereford, Burger Shop in Worcester and Hereford, Maneki Ramen in Worcester and Hereford, and Leaven, also in Hereford. Dorian Kirk told Gloucester Live: “This year is our most ambitious yet, as Dr Foster’s is our first pub and largest venue, with 300 covers, and we plan to expand into Birmingham with Maneki Ramen. This all began with Burger Shop in Hereford and has now grown into A Rule of Tum hospitality group, with five unique dining concepts. Dr Foster’s is a stunning building with all the old beams. The menu we are going to be launching will be leaning to something similar that we have at The Bookshop. We are going to have a menu running from breakfast to bedtime and offer a selection of cocktails and coffee.”

Home Counties hotel group reports turnover boost: Home Counties hotel group Distinct Group has reported turnover increased to £9,153,021 for the year ending 31 May 2023 compared with £7,464,131 the previous year. The company, which operates Hotel Cromwell in Stevenage and the Bedford Swan Hotel & Spa in Bedford, saw its pre-tax profit fall to £1,372,542 from £2,048,539 the year before due to increased costs. No government grants were received compared with £37,720 in 2022. “The increase in turnover follows continued investment into the Swan Hotel and due to the fact that the Cromwell is now firmly embedded as a community asset, following almost eight years successful business building initiatives,” director Tim Cockburn said. “The reduction in profitability is due to an increase in administrative expenses – mainly as a result of increased costs relating to a refinancing exercise, higher maintenance costs at the Cromwell due to the time elapsed since the last refurbishment, and heat and light costs increasing by almost 100% as a result of increased wholesale gas costs. The company continues to invest in companies and hotels from which it operates from and is still seeking further hotels to add to the portfolio when the opportunity arises, with the support from its parent company.”
 
TGI Fridays launches new £7 lunch offer: TGI Fridays has launched a new lunch offer with many of its signature dishes for £7 each. Options include its beef patty cheeseburger, crispy chicken finger BLT and big city dog – with a choice of house fries or house salad on the side. Among the other dishes included are the roasted pepper and tomato pasta and the crispy chicken and honey mustard salad. The offer is available Monday to Thursday until 4pm for dine-in only and is subject to availability. 
 
Leonardo Hotels acquires iconic Manchester city centre hotel: Leonardo Hotels has acquired Manchester’s iconic Hotel Gotham for an undisclosed sum. The company, one of the fastest growing hotel groups in Europe, has confirmed the acquisition of the five-star hotel, known as the “king of King Street”, which opened as a Midland Bank in 1935. More than half of the building was taken over by Bespoke Hotels to become Hotel Gotham, which opened in 2015. “The addition of the Hotel Gotham in Manchester marks a significant milestone in Leonardo Hotels' strategic growth plan, enhancing its portfolio with unique and iconic properties,” the company said. “With 60 bedrooms, including five unique inner sanctum suites, it includes the two AA Rosettes panoramic restaurant, Honey, and Club Brass, the rooftop private bar and members’ club. The Hotel Gotham Manchester will join the Leonardo Limited Edition collection of hotels, which features properties such as The Dilly Hotel in London’s Piccadilly, acquired by the group in 2022; The Grand in Brighton, acquired in 2023; and the Midland Hotel in Manchester, acquired in 2018 and meticulously restored to its status as one of Manchester’s leading hotels. This acquisition was made possible through the Fattal Partnership Fund, reflecting Leonardo Hotels’ commitment to strategic investments in premium hospitality assets.”
 
Better burger concept Gourmet Burger Club makes London debut in former Pitaya site: Better burger concept Gourmet Burger Club has made its London debut with an opening in the former Pitaya site in Covent Garden. Husband-and-wife team Mehdi Rizvi and Sana Zehran opened their first Gourmet Burger Club site, at 109 High Street in Banstead, in 2021, which was followed by a second, at 27 Oakdene Parade in Oakham, in January. The concept has now opened at 419-420 The Strand, which Rizvi formerly operated as a franchisee for France-based Thai street food brand, Pitaya. He is also a director at Mountever UK, a business that has managed retail franchise for Shell UK oil products since 2009, with Mountever Foods established in 2018 to develop food and beverage businesses.
 
Family-owned gym operator to open in Coventry for eighth site: Family-owned gym operator Fitness Worx is to open its eighth site, in Coventry. The company is opening in the former Fitness First premises at Cannon Park shopping centre in September. Work is currently taking place to transform the 12,000 square-foot building in Lynchgate Road. Fitness Worx was established in Kenilworth in 2014 but has since expanded into Warwick, Southam, Leamington Spa and Bristol. Customers with a multi-site access membership will also be able to use the new gym at Cannon Park. Owner Jack Gibson told Coventry Live: “Adding this eighth location to our collection is a significant milestone as it is our ten-year anniversary, and we cannot wait to bring our exceptional fitness services to the Coventry community.”
 
Manchester bakery set to open second site: Manchester’s Companio Bakery is set to open its second site. The Radium Street business, which opened in 2019, will this summer open a new, larger spot featuring an indoor seating area in the city’s Northern Quarter. Companio Bakery is owned by Neil Large, Phil Pryor and Baneta Yelda, having been originally established in 2015 by Russell Goodwin after a successful crowdfunding campaign. The current owners purchased the business in 2019 after becoming friends at the School of Artisan Food in the Welbeck Estate in Nottinghamshire. “We’re thrilled to announce that Companio is expanding to a new, larger cafe in the Northern Quarter this summer,” the company said on Instagram. “From the small bakery in Ancoats established in 2019, we have grown from a team of two to a team of 11, and we are only going up from there. Our commitment to artisanal baking and the unwavering support from our loyal customers have driven us to this exciting milestone. We look forward to continuing to serve you with the finest bread and pastries in an even bigger and better space, with indoor seating.”

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