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Morning Briefing for pub, restaurant and food wervice operators

Wed 19th Jun 2024 - Propel Wednesday News Briefing

Story of the Day:

Sector returns to growth in May as sales rise 3.6% despite mixed weather: Britain’s managed hospitality groups returned to growth in May as they achieved year-on-year sales growth of 3.6% despite disappointing weather in many parts of the country, the latest CGA RSM Hospitality Business Tracker reveals. It follows the 1.7% drop in trading in April, which came after six consecutive months of positive numbers. May’s figure is also comfortably above the current rate of inflation, as measured by the Consumer Prices Index. An easing of some household bills, along with two bank holiday weekends, provided a welcome boost to consumer spending during the month. The tracker – produced by CGA by NIQ in partnership with RSM UK – shows year-on-year growth was highest in the pub sector at 4.4%, while restaurants achieved 3.8%. Bars saw a 2.7% drop, though this was a substantial improvement on April’s figure of 15.1%. The on-the-go segment was 1.6% down. For the fifth time in six months, hospitality groups performed better in London than elsewhere in Britain. May sales were 4.1% ahead of last year inside the M25, while increasing by 3.5% beyond it. Karl Chessell, a director at CGA by NIQ, said: “Wet and cool weather continues to work against pub operators, but they and restaurants may be starting to feel the benefit of a relaxation of spending among some consumers, especially over occasions like bank holiday weekends. Bars and on-the-go sites are meanwhile still some way short of where they could be. The general election and greater economic certainty may help to unlock further spending, but operators will be hoping above all for much brighter summer weather to tempt people out of home.” 

Industry News:

Propel Multi-Club Conference and summer party opens for bookings, three free places per company for operators: Propel will host its Multi-Club Conference and summer party on Thursday, 5 September, at the DoubleTree by Hilton Oxford Belfry. The all-day conference will focus on “new ideas and directions in an era of strong headwinds” and will be followed in the evening by the summer party, with a barbecue and four hours of live music, including the UK’s best Ed Sheeran Tribute Act, The Ed Sheeran Experience; the UK’s top Robbie Williams and Gary Barlow tribute acts joining forces, Scott Borley and Daniel Hadfield; and the famous house band at Piano Works. There are up to three free places per company for operators, but Premium subscribers can have up to four places. To book, email jo.charity@propelinfo.com. A room can also be booked for the evening. For more details, email jo.charity@propelinfo.com. Speakers at the conference will include Karl Chessell, CGA by NIQ’s director, who talks about what the data says about the current sector landscape, the growth drivers and what is really resonating with consumers. Meg Farren, managing director of KFC UK, discusses changing the perception of the fast-food operator – from becoming more transparent with its supply chain and more sustainable, and how the circa £2bn business plans to open an additional 500 sites in the next ten years. Andy Waugh, co-founder of Sixes Social Cricket, discusses the creation of the competitive socialising concept, its growth in the UK, launching in the US, its international ambitions, franchising and being backed by the England cricket captain. Alex Large and Tasos Gaitanos, co-founders of Brother Marcus, talk about expanding in the capital and building a support team to help it maintain its high standards as it grows. Éadaoin McDonagh, managing director of Lina Stores, discusses how the restaurant and deli concept is leading a new generation of pasta-led operators in redefining the category. Steve Holmes, chief executive of the Azzurri Group, discusses the group’s evolution into a hospitality investment platform, the continued growth of its core brands ASK Italian and Zizzi, the next stage in Coco di Mama’s journey and the potential of Boojum. Neil Sebba, managing director of Tossed, talks about how administration and covid made the business more dynamic and focused. Simon Mitchell, chief executive of Kerb, discusses expanding both the food hall and catering parts of the business in the UK and internationally, what sets its market concept apart, how it nurtures food entrepreneurs and what the future holds for the street food sector. David Roberts, leading hospitality sector corporate lawyer from global law firm CMS, explains best practice for founders and backers who are considering selling their hospitality business or raising further investment. Satnam Leihal, chief executive of Boparan Restaurant Group, talks to Propel group editor Mark Wingett about the company’s portfolio of brands, including the continued growth of Slim Chickens, the repurposing of Giraffe as an international travel hub specialist, the rejuvenation of Carluccio’s, Fishworks and Cinnamon Club, and how the business continues to seek new opportunities for growth. Roxy Leisure co-founder Matt Jones and managing directors Ben Warren and Colin Sadler discuss how the business is standing out in the increasingly crowded competitive socialising market, how the group’s King Pins concept is looking to redefine family entertainment and how they see the category evolving. Marcel Khan, chief executive of Fulham Shore, the Franco Manca and The Real Greek operator, talks about earning consumer loyalty “one meal at a time”, why expansion for the two brands will be a “marathon and not a sprint”, and looking to continue to create value for customers.
 
Next Who’s Who of UK Hospitality to feature 58 updated entries and 11 new companies, released on Friday: The next Who’s Who of UK Hospitality will feature 58 updated entries and 11 new companies when it is released to Premium Club members on Friday (21 June), at midday. This month’s edition includes 876 companies and more than 236,000 words of content. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium Club members also receive access to five other databases: the Multi-Site Database, produced in association with Virgate; the New Openings Database; the Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Clubs 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 that are Premium Club members are also 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.

Rules banning new takeaways across most of Newcastle approved: New takeaways will be banned from opening across most of Newcastle in an effort to combat obesity rates in the city. ITV News reports that councillors have signed off on a major crackdown on hot food takeaways, imposing strict limits on where they can be located. Restrictions agreed by Newcastle City Council’s cabinet mean no new fast-food outlets will be allowed to be set up in wards where more than 10% of Year 6 pupils are obese. This currently covers every single part of the city, aside from the wealthy suburbs of Gosforth and South Jesmond. Takeaways will also be banned from opening within 400 metres or a ten-minute walk of schools, parks and community centres, as well as in wards where the volume of takeaways exceeds the UK average. The rules will be in force everywhere in Newcastle other than in its retail core in the heart of the city centre and will apply to both new-build and change-of-use planning applications. The dangers of schoolchildren being exposed to more unhealthy food has been a topic of controversy in Newcastle over recent years, with plans to open a McDonald’s near Kenton School and a Burger King on Westgate Road prompting backlashes from local communities.
 
Tom Kerridge – food prices and lack of experienced staff are pushing the hospitality industry to ruin, we need fresh thinking: Restaurateur Tom Kerridge has said he still believes that if you have “guts and determination, Britain can be a good place to open a restaurant or start a food business”, but trying to keep that business open is “now a different story altogether”. Writing in the Guardian, he said: “Take the price of food, which has rocketed in recent months. A litre of olive oil costs almost a tenner, and eggs have gone up by a third. These price increases are something that every restaurant owner and hospitality business fears. Whether it’s the sandwich shop around the corner, a cafe by the railway station, or a high-end restaurant with white tablecloths, the only way hospitality businesses make money is by charging you for the food on your plate. And when the cost of the individual components on that plate goes up, so does the price you read on the menu. The result is a crushing pincer movement, where food is getting more expensive and customers have less money to spend on eating out. Once you factor in the soaring cost of energy bills, rising business rates and the 20% VAT that all restaurants have to charge on food and drink, it’s no surprise so many of them are closing. At [our pub in Marlow] the Hand and Flowers, we often had problems with unexpected price increases on products such as beef, but we could almost always source a cheaper alternative if we needed to. Now hospitality businesses are frequently finding that there are no alternatives. One resourceful solution would be slashing VAT to 10% for food sold in restaurants, cafes and so on. That would put us in line with countries such as France and Italy and would give businesses more money to reinvest in replacing that broken fridge and hiring more staff. If politicians continue avoiding the subject of Brexit, they should at least talk about what will replace freedom of movement. We need new apprenticeships in the hospitality industry and new training opportunities.”
 
Sector company insolvencies up 27%: Company insolvencies in the hospitality sector have increased 27% in the year to April 2024 – from 3,004 to 3,821 – according to new government figures. Hospitality had the third highest number out of all industries while insolvencies have increased by the most in the hospitality sector over the past year. The figures are also up 11% month-on-month in April 2024. 
 
UKHospitality – Scotland visa urgently needed as sector vacancies increase: UKHospitality Scotland is adding its voice to growing calls for the specific needs of Scotland to be recognised in the UK’s immigration system. Recruitment challenges continue to affect Scottish hospitality’s ability to grow, as new figures show that vacancies there increased by 60% in April 2024, compared with January 2024. Hospitality businesses in the UK recruit more than three-quarters of their staff from within the UK but Scottish businesses are finding unique challenges in the numbers of people available to work, UKHospitality said. The declining birth rate in Scotland and its rural nature are thought to be key factors. Leon Thompson, executive director of UKHospitality Scotland, said: “Like the rest of hospitality in the UK, our businesses have struggled to recruit staff. This ongoing issue is putting at risk hospitality’s ability to serve Scotland and create places where people want to live, work and invest. A dedicated Scotland visa that allows sectors facing shortages to recruit essential staff would be a game-changer for Scottish hospitality.” Meanwhile, UKHospitality has commended Labour’s plan for high streets, which commits to replacing the business rates system, cutting energy bills and giving communities the “right to buy” community assets like pubs. Chief executive Kate Nicholls said: “With around 80 pubs closing each month so far this year, we are already in a critical situation. Any incoming government needs to urgently fix business rates, where hospitality faces another cliff edge in April next year with rate increases and relief set to end.”
 
McDonald’s ends AI drive-thru trial: McDonald’s is ending its test of employing artificial intelligence (AI) chatbots at drive-thrus. The company will remove automated AI-based order systems from more than 100 locations around the US. The systems, which featured an AI voice responding to customer orders, had been tested as part of a deal between McDonald’s and IBM that began in 2021. McDonald’s told franchises that it would shut down the technology on Friday, 26 July. A spokesperson for McDonald’s told Restaurant Business that it would decide its plans for automated orders by the end of the year but stressed that “a voice-ordering solution for drive-thru will be part of our restaurants’ future”. Fast-food brands have taken an immense interest in integrating generative AI into their systems in recent years. Along with McDonald’s, operators including Wendy’s, Hardee’s, Carl’s Jr and Del Taco all use AI technology at their drive-thrus. Earlier this month, Popeyes UK, the US fried chicken quick service restaurant brand backed here by TDR Capital, said it was launching AI-powered drive-thrus following a successful pilot in Northampton, with a view to expanding to all current Popeyes UK drive-thru sites by next month.
 
JD Wetherspoon sues Welsh pub for using ‘Wetherspoons’ name: JD Wetherspoon is suing the Welsh pub at the centre of a rebranding row for using its name on signs. The Telegraph reported that the Sir Tim Martin-led business has filed a legal claim against a company trading as Wetherspoons Ltd, which runs The Bridge Head in Abergele, Denbighshire. The pub, which has no link to JD Wetherspoon, had placed a “Wetherspoons Limited” sign on the building. It came after the pub was hit by a boycott from locals in March after it changed its name from Pen-Y-Bont Inn to The Bridge Head. Sir Tim said his business had resorted to legal action after trying to resolve the matter informally. He said: “It’s mad. We’re well known in Wales. Welsh poets Goldie Looking Chain have even memorialised us in song. Despite a number of requests to the pub’s owners to remove the reference to Wetherspoon, they refused, and we have therefore had to issue court proceedings asking the court to order that they do so. We hope that the matter can still be resolved amicably.” A spokesman for the Bridge Head told North Wales Live in March: “Wetherspoons Ltd is a legitimate name and an available name. It has been registered with Companies House.”
 
Job of the day: COREcruitment is working for an expanding brand that is looking for general managers in Oxford, Cambridge, Manchester, Birmingham and Bristol. A COREcruitment spokesperson said: “You will thrive in a branded environment, enjoy community-driven work, and excel in nurturing and developing your team. You’ll need to push local marketing harder, as these brands are less known outside London, and be meticulous with your commercials and finances.” The salary is up to £60,000. For more information, email kate@corecruitment.com. 
 

Company News:

Pure experiencing ‘exceptional growth’, launches dedicated business catering offer: Pure, the healthy food-to-go concept, has told Propel it is experiencing “exceptional year-on-year growth” and has launched a dedicated business catering division – Food for Business. Pure said that the growth of its meeting catering service over the last few years – where it already has clients including Amazon, Chanel and lululemon – has led to the introduction of a “more comprehensive range of services to meet every business need”. Pure currently operates 14 sites across London, plus a site at Gatwick airport and four catering hubs for corporate clients. Spencer Craig, co-founder and chief executive, said: “We are experiencing exceptional year-on-year growth. We’re up 40% on 2023 and that’s before we’ve launched the full range of business services. Our main focus is growing our business services, including a wholesale range. We don’t need any more shops to do this, although we will open a couple over the next 18 months.” On the new business catering service, he said: “We are on a mission to make meetings magic, events extraordinary and workplaces wonderful. We’ve been serving catering at meetings for more than a decade. These years of experience, combined with listening to our customers, has led to the development of our new division, Food for Business. We know that good food is good for business. The Pure team has done an incredible job to develop a wider range of services to get Pure into the hands (and mouths) of as many people as possible. From our research, the demand for what Pure offers has never been clearer. Whether it is a weekly client catch-up, a monthly board meeting, a large conference, a company that wants to feed its team every day or an event that needs a longer-life product, Pure now has the solution for it all.” A survey of more than 500 people by Pure revealed more than 50% rated the food at their most recent meeting or event as average, poor or terrible. Propel revealed in May that Whitbread, the Premier Inn owner, had sold its interest in Healthy Retail, a joint venture that operated Pure for £1. Whitbread acquired a 49% stake in the then eight-strong Pure in May 2016 for £6.8m before exiting the business, which at that stage operated 16 sites, in December. Propel revealed in January that Ralph Trustees, the family-owned hospitality group led by brothers Daniel and Stuart Levy, had become the new backers of Pure. 
 
Le Vert group to launch new sandwich concept in the UK: Middle East-based group Le Vert is to launch a new sandwich concept called Loaf in London, Propel has learned. Le Vert, which operates a number of brands across the Middle East, has secured the King of Falafel site in Clerkenwell Road for an opening later this year. It is thought that Le Vert, which is led by Helmat el Zein, plans to open five sites under the fast-food sandwich concept in London within five years. The company currently operates nine sites under its Xenia café brand in the Middle East, plus La Creperie in Lebanon and the One the Wood restaurant in Dubai. Emma Wright, of CDG Leisure, acted on the Clerkenwell Road deal.
 
AJ Bell – update implies Whitbread is wading through mud in the UK, company receives expressions of interest in majority of 126 pub restaurant sites: AJ Bell investment director Russ Mould has said that Whitbread’s first-quarter results to the end of May are “not outstanding”, and the latest update from the Premier Inn and Beefeater operator implies it “wading through mud in the UK”. Whitbread reported group sales grew 1% to £739m in the 13-week period to the end of May, driven by an improved performance in the UK and continued progress in Germany. In the UK, following a soft first seven weeks that saw like-for-like sales down 1%, revpar 1.6% lower and food and beverage sales down 1%, total sales over the full 13 weeks ended flat year-on-year. Mould said: “Whitbread’s first-quarter results to the end of May are not outstanding. While the share price perked up on the figures, this is only a small bounce from what’s been a downward trend for the stock for most of the year. It’s easy to see why the market has been worried – miserable weather dampened appetite for a last-minute weekend away. The latest update implies Whitbread is wading through mud in the UK, with like-for-like sales for accommodation and food and drink both in decline. Given the circumstances, Whitbread might view this performance as resilient as the rate of UK sales decline is only marginal. However, it does put more pressure on the business to have a bumper summer if it wants the first-half results to shine.” At the end of April, Whitbread, which also operates the Brewers Fayre brand, set out plans to exit 126 of its lower-returning branded restaurants as it seeks to optimise its food and beverage offer and is set to cut 1,500 UK jobs as part of its “accelerating growth plan”. This revamp, costing £500m over four years, will also the conversion of 112 restaurants to 3,500 new hotel bedrooms. Whitbread had already agreed to sell 21 restaurants for £28m, to the likes of Young’s and the Heartwood Collection. When asked about the progress of the plan, Whitbread chief executive Dominic Paul said: “I would describe our progress on accelerating growth as bang on to where we would expect and wanted to be at this stage. There are 126 sites that we are now actively marketing. We’ve actually had expressions of interest in the majority of the sites. Obviously, these things take time, and we’ve factored that into our planning.”
 
Easyhotel refinances and receives new £20m investment from shareholder, new openings perform strongly, plans wider UK expansion: Easyhotel has refinanced and received a new £20m investment from Citrus Holdings, one of its main shareholders. In its accounts for the year to 31 December 2023, the company, which operates 18 budget hotels in the UK and 24 in the rest of Europe, entered into a new facility of €4.8m, which matures in January 2028. Post year-end, in February, the group refinanced a £35.2m loan from Santander and replaced it with a new facility of £42.5m, repayable in 2029. A further loan facility worth €6.9m and repayable in 2029 was secured that same month, alongside the purchase of land in Alicante, Spain, for a new €3.3m hotel. Last month, it also agreed deals for hotels near Geneva airport in Switzerland (€14m) and Madrid (€16.5). It comes after the group reported strong performances from its 2023 openings in Dublin and Paris Nord Aubervilliers, which it said “gives confidence in the growth potential of the group”. It also said wider regional UK expansion plans “remain important to the business and will be considered on a case-by-case basis”. Chief executive Karim Malik said: “The newest hotels in our estate have traded positively and provide confidence that the high-quality developments in key cities, which the group is now focusing on, will produce good long-term returns for our shareholders. We have supportive shareholders who share this vision for the group, as we look to accelerate our development, funded in the longer term through a combination of new debt secured on the group’s assets and further equity.” A new hotel in Marseille will open in the third quarter of this year, while further projects are underway in Barcelona and Valencia for openings in 2025. Further development opportunities in Spain, France and the UK are under consideration, while franchise partners have identified projects under development in locations such Israel, Malta and Morocco, as well as the UK. Group revenue grew from £38.2m in 2022 to £67.4m during the year. Revenue from owned hotels grew to £65.5m (2022: £36.8m) and franchise revenue dropped to £1.5m (2022: £2.4m). Adjusted Ebitda grew 84% from £9.3m to £22.9m. A pre-tax loss of £9.2m (2022: loss of £2.3m) “was influenced by the several factors” including finance charges of £16.9m (2022: £5.7m), driven by a new loan facility opened in October 2022. Total average occupancy for all owned hotels stood at 79.0% (2022: 74.8%) with an average daily rate of £69.60 (2022: £44.70). No dividend was paid (2022: nil). 
 
Noble Hospitality Group lines up Chelsea site for pizza concept: Noble Hospitality Group – the group behind Japanese concept Chotto Matte, Angus Steakhouse and Steak and Company – has lined up an opening in Chelsea for its fledgling Alley Cats Pizza concept. Propel understands that Noble Hospitality Group plans to open a second site under the pizza concept at 342 King’s Road later this year. Talking to Propel earlier this year, the company said it had targeted 15 sites by 2029 for its new pizza concept. Noble Hospitality Group, previously known as ATFC, launched Alley Cats Pizza, which focuses on New York City-style pizzas, at the start of the year at 22 Paddington Street, just off Baker Street. The concept is being overseen by chef Francesco Macri, who was formerly at Pizza Pilgrims, Caravan and Princi. “The next opening is scheduled for May-June, although the specific location remains confidential at this time,” a Noble Hospitality Group spokesperson told Propel at the time. “We are considering expansion in all areas of the city with a target of establishing 15 stores within the next five years. Additionally, we have aspirations for international growth through franchising and are actively seeking franchise partners who share our vision.”
 
Six by Nico plans Newcastle opening: Six Company, the company behind the Six by Nico restaurant business, is lining up an opening in Newcastle. The company has submitted plans to open on the former Cooperative Bank site within Norfolk House in Grey Street. The site would mark its debut in the north east. Last month, the business opened a site on the rooftop of the Westgate shopping centre in Oxford under its core Six by Nico brand. Since opening in Finnieston in 2017, Six by Nico now has 15 locations including two in London, two in Manchester and three in Glasgow, as well as sites in Aberdeen, Belfast, Dublin, Edinburgh, Birmingham, Leeds and Cardiff. In April, Propel revealed that Six Company had appointed advisors to assess its funding options as it looks to step up its expansion plans in the UK and overseas. It has begun working with advisors at Cavendish on its strategic options. Until now, Six Company’s growth has been funded out of cash flow and debt provided by ThinCats. Six Company will open two new sites in Edinburgh this summer, including one under its fledgling bar concept, Somewhere by Nico, which launched in Glasgow earlier this year.
 
The Big Table Group lines up Stevenage opening for Banana Tree: The Big Table Group – the operator of Las Iguanas, Frankie & Benny’s, Café Rouge and Bella Italia – has lined up an opening in Stevenage for its Banana Tree brand. Propel understands that Banana Tree will open a 21st site on Thursday, 25 July on the former Firejacks site at the Hertfordshire town’s leisure park in Six Hills Way. At the start of this month, Big Table Group told Propel that Banana Tree brand had delivered “consistently strong” like-for-like sales in recent months, and that it has provisionally signed on two new site leases for the brand. The company acquired the then nine-strong Banana Tree for an undisclosed sum in September 2022 and has since converted 11 of its existing sites, the majority Café Rouges, to Banana Tree. At the end of last year, Big Table Group chief executive Alan Morgan told Propel that he believes the company can grow Banana Tree to a “Las Iguanas-sized business in 18-24 months”. Big Table Group currently operates 51 sites under its Las Iguanas brand.
 
Bar Soba sells Edinburgh site: Bar Soba, the Camerons Brewery-owned business, has sold its site in Edinburgh – leaving it with two locations in Glasgow and one in Leeds. The Hanover Street venue consists of a basement and ground floor, catering for 140 covers, and sits within Edinburgh’s new town. David Higgins, director and co-owner at Cornerstone Business Agents, who handled the new lease transaction, said the venue would now “undergo a refurbishment before opening as a new concept soon” by an experienced operator “who will bring the eye-catching unit back to its former glory”. The Edinburgh bar, which first opened in 2012, was put up for sale in October. Bar Soba, which is a pan-Asian inspired street food and cocktail bar concept, will continue from its sites in Glasgow’s Mitchell Lane and Merchant City, as well as in Leeds’ Greek Street. Camerons acquired the then five-strong Bar Soba in April 2023.
 
Gainford Group puts plan for £200m hotel and apartments complex with restaurants and bars back on the table, acquires site for second similar project: North east leisure operator Gainford Group, which also runs 12 care homes, has put plans for a £200m hotel and apartments complex with restaurants and bars in Newcastle back on the table, while also acquiring a site for a second similar project. The group – which is behind the Great Victoria Hotel in Bradford as well as Newcastle venues the Vermont Hotel, the County Hotel, Bar Livello, the Vermont Apartments, the Aveika restaurant and the Newbridge Street Hotel – had seen its plans for its Newbridge Street site put on hold by the pandemic. “Extensive planning is ongoing for a £200m mixed use development in Newcastle city centre at the group’s historically purchased Newbridge Street site, which includes a residential tower of 190 apartments, 200-bed hotel, office block and public realm with restaurants, bars and fitness facilities,” said director Imran Khaliq. “Other developments include the purchase of Milburn House in Dean Street in Newcastle, which will also include a mixed-use development of 120 residential apartments, office space, bars, restaurants and retail units. Both plans for development are in the hands of Newcastle city planners.” It comes as the group reported its turnover rose to £49,273,370 in the year to 31 December 2023 (£21,919,673 from hospitality), up from £47,330,031 in 2022 (£22,027,205 from hospitality). Pre-tax profit grew from £6,425,610 to £8,404,778. Dividends of £1,336,700 were paid (2022: nil). Government grants of £101,197 were received (2022: £79,360). During the year, the group consolidated its two loans, comprising a long-term loan and borrowings under the Coronavirus Business Interruption Loan Scheme, into a single long-term loan with HSBC. The final instalment is due in December 2027 and the carrying amount at the year-end was £16,879,522 (2022: £18,960,365). Khaliq said the 31% rise in profit was due to “effective management and cost control” and can be “attributed to the management team and the entire operational staff of the company”. He added: “This positive trend is expected to continue into 2024 and beyond.”
 
Northern Ireland’s largest hotel operator secures more than £7m for Portrush development: Northern Ireland’s largest hotel operator, Andras House, has secured backing of more than £7m from Ulster Bank as it makes its largest investment in its portfolio outside of Belfast. Andras House was founded in Belfast in 1981 and operates seven internationally branded hotels with more than 1,000 beds across Holiday Inn Belfast City Centre, Holiday Inn Express, three Ibis hotels, the Crowne Plaza, Hampton by Hilton Hotel in the city’s Hope Street, and Cordia Serviced Apartments. The new 83-bedroom Marcus Hotel Portrush is being developed as part of an £11m investment by Andras House and will be operated under franchise from Hilton under the Tapestry Collection by Hilton brand. Andras House’s investment in Portrush – which will be the first Tapestry Collection by Hilton hotel on the island of Ireland – represents Andras House’s largest investment outside of Belfast. Construction on the new hotel is continuing at pace and is expected to complete in 2025 in time for The Open, which returns to Royal Portrush next year. Rajesh Rana, director at Andras House, said: “This is a strategically important investment for Andras House and a reflection of the successes of our developments in Belfast and it represents an important milestone for the future of the company too. As visitors flock to the north coast, we see great opportunity to extend our reach and offer the same high-quality hospitality experience regionally.”
 
Costa Coffee unveils latest store design: Costa Coffee, the Coca-Cola Company-owned brand, has unveiled its latest store design after reopening its Tooley Street store in London following a “major refurbishment”. The new store features updated colour, furniture and lighting, contributing to “creating a much lighter and brighter feel”. The business said it has also implemented new technology in the store to improve convenience, including touch screen ordering machines and charging points. Luke Shaughnessy, regional operations director at Costa Coffee, said: “We’re thrilled to unveil the refreshed Costa Coffee store in Tooley Street, designed to be the perfect space for all. With a fresh bakery range, the latest technology for seamless ordering, and a bright, uplifted interior, our renovated London store is the ideal spot for customers to recharge and connect with friends, family or colleagues, or to quickly pick up their go-to Costa coffee while they’re on-the-go.”
 
Knoops opens in Leeds: Knoops, the luxury hot chocolate shop brand, has opened its latest store, in Leeds. Knoops has opened at 26-28 Albion Street in the city’s Trinity Centre. It is a 19th UK store for Knoops, with openings in York, Bristol and Newcastle also in the pipeline as it works towards a target of 40 stores by next summer. This year, the brand has already made its Midlands debut, in Nottingham, and opened its first Scottish site, in Edinburgh.
 
Welcome Break to develop new motorway services site in Somerset: Motorway service station operator Welcome Break has agreed terms to acquire a ten-acre plot for the development of a new site in Somerset. Landowner S Notaro and commercial property developer Stoford have signed Welcome Break for a new 93-acre industrial/warehouse scheme near Bridgwater. The development of a new service station would be adjacent to junction 24 of the M5. The overall scheme has outline planning consent for the development of more than 1.3 million square feet of accommodation. The first phase of development will see the construction of a new consented road network and site infrastructure at Notaro Park this summer. This is in preparation for work to start on the new service station by the end of the year. David Myers, property director at Welcome Break, said: “I am delighted that we have achieved another major milestone on our journey to increase the size of our operational estate. As a team, we have gone the extra mile to realise the potential of Bridgwater as a strategic location for Welcome Break and we are confident in our ability to develop a world-class facility for motorway customers travelling along the M5.”
 
Greene King to convert Nottinghamshire pub into new Hickory’s Smokehouse: Brewer and retailer Greene King is converting one of its Nottinghamshire pubs into a new Hickory’s Smokehouse. The Goose in Gamston has shut for a transformation to the American-style smokehouse and barbecue brand Greene King acquired in 2022. In February, Propel revealed that The High Park Pub & Grill in Huddersfield would become the 18th site under the Hickory’s brand, with the Bonnie Prince pub in Chellaston, near Derby, also being converted. That same month, Greene King said on a like-for-like sales basis, its Hickory’s business was consistently more than 30% higher in its last financial year than pre-covid levels. Greene King said at the time of acquiring Hickory’s that it saw the potential to grow it into a national brand.
 
Sidemen launch new retail range with Iceland Foods: YouTube collective Sidemen has launched a new exclusive range into Iceland Foods. Called Sides, the new range comprises an initial 15 products including sauces, chicken wings, barbecue ribs and a selection of side dishes including onion rings and cheese bites, inspired by dishes currently on sale at the Sides seven-strong restaurant business. The products retail between £2 and £5. Achieving this in just six months after launching the first restaurant “is a remarkable feat”, said Robin Mehta, chief executive of Sides. He added: “Working with the Sidemen and team has been full of pinch-me moments, and launching a product range in a top ten retailer is definitely one of the highlights.” To mark the launch, Iceland has converted its store in Hackney, east London, into a “SidesLand” until the end of June. Oliver Gilding, head of innovation and licensing at Iceland Foods & The Food Warehouse, said: “We’re excited to launch the Sidemen’s new Sides restaurant-inspired frozen food and sauce range exclusively across our 1,000-store estate, and I’m confident this range will be one of our most popular launches to date.”
 
Slim Chickens to open in Somerset: US brand Slim Chickens, which is being rolled out in the UK by Boparan Restaurant Group (BRG), is set to open a new restaurant in Somerset. It will open its 53rd UK site at Clarks Village in Street on Friday (21 June), creating 50 jobs and offering space for more than 50 guests. Ben Blore, head of operations at Slim Chickens, said: “I want to express my sincere gratitude to the incredible team at the Clarks Village site and our openings team for making all this possible. Their hard work and dedication allow our sites to open and deliver fresh, cooked-to-order chicken every time, ensuring the best experience for our guests.”

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