|
|
|
Thu 1st Aug 2024 - Propel Thursday News Briefing |
|
Story of the Day:JKS expands leadership team at Gymkhana Fine Foods as it looks to scale the business further: JKS Restaurants has strengthened the management team of its fast-growing retail brand, Gymkhana Fine Foods, with three new hires. The retail business, which was launched last October, has hired Deepa Bulsara as marketing director, Nihal Haria-Shah as finance director and David Furze as operations director. Building on its initial success, Gymkhana Fine Foods said it has bought in the trio to scale the brand into retail and internationally. With more than 15 years of experience in the fast-moving consumer goods (FMCG) industry both in the UK and internationally, the company said that Bulsara has developed a “robust expertise in leading strategic growth and brand marketing”. Haria-Shah, meanwhile, will head up the finance area of the business. Qualified as an accountant with EY, Haria-Shah started his professional journey in its small and medium-sized enterprises audit practice. Furze has joined the business from Mars and “developed a rounded expertise in supply chain and operations management across several other renowned brands such as Red Bull, Mallow & Marsh, and Mars Wrigley”. The new hires follow the appointment of ex-Oatly general manager Ishen Paran in March as managing director of the UK business. Gymkhana Fine Foods launched in the UK with its range of premium Indian products (cooking sauces, marinades and chutneys) from the two Michelin star Indian restaurant, Gymkhana in Mayfair, London. The business has grown exponentially in just the first 12-months, landing listings in Whole Foods Market, Ocado, Selfridges plus a recently launched concession in the Harrods Food Hall, and said it has more “exciting retail launches” in the pipeline for autumn. At the end of last year, Gymkhana Fine Foods closed a $3m seed funding round, led by Cavu Consumer Partners, to further help its retail expansion internationally.
Industry News:KFC UK & Ireland chief people officer Kathryn York to speak at Propel’s Talent & Training Conference, open for bookings with 20% discount on tickets for Premium Club members: Kathryn York, chief people officer at KFC UK & Ireland, will be among the speakers at Propel’s Talent & Training Conference. The all-day conference takes place on Tuesday, 1 October at One Moorgate Place in London and is open for bookings. The conference will showcase examples of outstanding people culture among companies within the sector and how the industry is attracting talent. York will talk about the success of KFC’s “The Hatch” youth employment programme, which looks to help young people into their first job, and its “The Kentucky Club”, which hosts jobs-based pop-up events around the country for young people. For the full speaker schedule, click here. Tickets are £345 plus VAT for operators and £395 plus VAT for suppliers. Premium Club members get a 20% discount. Email: kai.kirkman@propelinfo.com to book places.
Premium Club members to receive new searchable and segmented New Openings Database next week: The next Propel New Openings Database will be sent to Premium Club members on Wednesday, 7 August, at noon. The database will show the details of 268 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 11,881-word report on the 268 new additions to the database. The database includes new openings in the experiential leisure sector such as Archie’s Atomic, an arcade concept set to open at Trafford Palazzo in Manchester; Smash Padel with multiple openings; and Spinners with a new opening in Solihull, West Midlands. Premium Club members also receive access to five other databases: the Multi-Site Database, in association with Virgate; the Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database; the UK Food and Beverage Franchisee Database and the Who’s Who of UK Hospitality. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including the Talent and Training Conference (1 October), Restaurant Marketer and Innovator (two days in January 2025) and Excellence in Pub Retail (May 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. Restaurant groups’ delivery sales see strongest growth since end of covid-19 restrictions: Britain’s leading managed restaurant groups have recorded the strongest growth in delivery sales since the end of covid-19 restrictions, CGA by NIQ’s latest Hospitality at Home Tracker reveals. The monitor shows like-for-like delivery sales in June were 17.1% up on the same month in 2023. It is the second month of double-digit growth in a row, after an 11.3% increase in May. The strong run of trading comes in a summer of widespread cool and damp weather across much of Britain, which has prompted some consumers to have food delivered to their homes instead of going out. Restaurants' at-home sales have also been boosted by the Euro 24 football tournament. CGA by NIQ’s Hospitality at Home Tracker reveals weaker trends in restaurants’ takeaway and click-and-collect sales, which were down year-on-year by 1.1% in June. It continues consumers’ long-term shift away from pick-ups in favour of delivery to the door. Combined deliveries, takeaways and click-and-collect sales were 9.7% up on June 2023 – a 13th consecutive month of growth and more than four times Britain’s current rate of inflation. Deliveries accounted for 11.2p in every pound spent with restaurants in June, while takeaways attracted 4.4p. Karl Chessell, director at CGA, said: “After soaring during covid and slipping after the end of restrictions, restaurants’ delivery sales are now riding a new wave of strong growth. With the weather and Euros keeping so many consumers indoors, it’s a good environment for at-home sales and an encouraging indicator of spending confidence. As takeaway sales continue their downward trajectory we also have confirmation of how third-parties now dominate the delivery market.”
Two restaurants in London’s Borough Market among additions to Michelin Guide in July: Two restaurants in London’s Borough Market have been added to the Michelin Guide in July. Kolae, named after a cooking style from the south of Thailand, was opened in June 2023, by two of the founders of Spitalfields Thai restaurant Som Say, Mark Dobbie and Andy Oliver. Kolae has been added to the guide along with fellow Borough Market operator Oma, which David Carter, who is behind Manteca and Smokestak, opened at the start of 2024. There are also two new entries from Dublin – seafood-focused Caladh in the coastal suburb of Greystones, from Pigeon House duo Paul Foley and Brian Walsh, and Jean-Georges at The Leinster, from the French chef who owns a portfolio of restaurants across the world. There are also two new Peak District entries – Deacon’s Bank in Chapel-en-le-Firth, owned by local resident Tom Gouldburn, and The Bulls Head pub in Holymoorside, owned by Great British Menu finalist Mark Aisthorpe. The other new entries are The Auction House in Louth, Lincolnshire, from former Winteringham Fields head chef Gareth Bartram, and The Cocochine in London’s Mayfair, from Hamiltons Gallery owner Tim Jefferies and chef Larry Jayasekara.
Job of the day: COREcruitment is working with a prestigious restaurant group specialising in premium Thai cuisine that is seeking its first operations director. A COREcruitment spokesperson said: “You will be a self-reliant operations director with a strong background in Thai/Asian cuisine and culture. Due to the owners being based internationally, the role requires a high degree of autonomy. You will have access to all necessary support functions to sustain and grow the business, but it is crucial that you are solution-oriented and thrive in such an environment. Reporting directly to you will be all general managers and an experienced operations manager. This hands-on position will have you working almost as an owner/operator. The board boasts extensive experience in premium dining, with all restaurants located in affluent areas of London. Enhancing the guest experience is paramount.” The salary is up to £120,000 and the position is based in London. For more information, email kate@corecruitment.com.
Company News:ETM and Maven Leisure launch new brand identity – the ETM Collection: ETM Group and Maven Leisure have moved to bring together a number of their venues under the umbrella of the ETM Collection, as they look to “enhance brand identity and guest experience”. The businesses have placed a number of sites under the ETM Collection, including its upcoming rooftop bar and restaurant opening in London’s Covent Garden, Kitty Hawk. The companies said: “This unified approach will allow us to leverage our collective strengths, offering our guests a diverse and cohesive dining experience across each of our restaurants.” As part of this, ETM Collection has launched a new website and booking platform that showcases each venue, along with current offers, event spaces and real-time booking availability. Ed Martin, chief executive of ETM Group and Maven Leisure, said: “The launch of the ETM Collection marks a significant milestone for us. By bringing our venues together under one banner, we continue our focus on building a robust and recognisable brand. This consolidation enhances the visibility and identity of our esteemed locations, reinforcing our commitment to delivering exceptional dining experiences. By bringing our diverse venue collection together, ETM Collection solidifies its reputation as a leader in the hospitality industry. Each venue under ETM Collection promises to uphold the highest standards of quality, service, and innovation, ensuring every guest enjoys an unforgettable experience.” Last week, ETM Group and Maven Leisure announced the launch of a new concept, Sport London, which consolidates its premium sports-led hospitality venues under one distinguished brand.
Jack Greenall acquires third pub, forms new company and ‘poised for further growth’: Jack Greenall, a scion of the Greenall Whitley brewing family, has acquired his third site. Greenall has added The Carpenters Arms in Hammersmith, west London, to his portfolio that now sits under the newly formed Wren Pubs, which said it is “poised for growth”. The 19th century The Carpenter’s Arms near St Peter’s Square features a garden and private dining space. In line with Wren Pubs’ philosophy of respecting the history of its buildings, much of the current interior will remain the same and menus will be refreshed in line with the rest of the portfolio, to offer modern-British cooking and drinks menus with a focus on championing independent brands. Greenall said: “Characterful and timeless, The Carpenter’s Arms is a gem of a pub and makes for a very special addition to the Wren Pubs family. It’s a hugely exciting time as we officially announce the formation of Wren Pubs, a people-first business that focuses on community, quality and above all enjoyment.” The Surprise in Chelsea’s Christchurch Terrace was Greenall’s first pub in May 2021 and was followed by the reopening of the Walmer Castle in Notting in November last year. The pubs have an ongoing events series featuring themed talks, which in time, will be also established at The Carpenter’s Arms. Greenall, who is also a former operations manager at Upham Pub Group, also operated The Pheasant near Hungerford, Berkshire, before selling it to Young’s in 2022.
Hollywood Bowl secures site for second Northern Ireland location, ‘identified about 15-16 locations we’d like to be in’: Hollywood Bowl, the UK’s largest ten-pin bowling operator, has secured a site for its second Northern Ireland location. It will open a 23,000 square-foot, 21-lane bowling alley in late 2025 as part of a £9m redevelopment of The Boulevard designer outlet in Banbridge, County Down. Hollywood Bowl currently has 72 sites across the UK, following recent openings in Colchester, Dundee and Merry Hill in the West Midlands. Further centres due to open in Westwood Cross in Kent, Swindon, Reading, Inverness and Uxbridge in west London in the coming year. Alastair Coulson, managing director at The Boulevard landlord Lotus Property, said: “Welcoming Hollywood Bowl to The Boulevard is an exciting moment in the scheme’s history as it triggers a multimillion-pound redevelopment to create a food and entertainment quarter.” Hollywood Bowl’s long term target is 99 UK sites and 30 in Canada by 2030. “We’ve identified about 15-16 locations we’d like to be in and we’ve got eight of them lined up, with a few more we’re working hard to secure,” chief financial officer Laurence Keen told Propel. “If we were on a quantity play, we could open 15 sites a year, but we’re on a quality play. We’re always looking at markets, but ones where we can grow Ebitda rather than buy Ebitda. We’re looking for opportunities to buy and grow using the experience we’ve had in the UK and Canada.” A new report produced by Propel on the fast-growing experiential leisure sector will be available to purchase today (Thursday, 1 August). The report profiles the current shape of the experiential leisure market – including brands, estate size, trading type and geographical location and future trends. It provides a detailed list of UK experiential leisure companies including key staff and Companies House information. The report includes more than 190 companies, 3,500 sites and a 35,000-word report. Existing Premium Club members can receive the report on Thursday, 1 August for £395 plus VAT. The report will be made available for free to existing Premium members on Tuesday, 10 September at 9am. Email: kai.kirkman@propelinfo.com today to order a copy.
Welcome Break – uplift in trade since Easter following quieter start to 2024, lower weekday commuter trade and higher weekend leisure trade ‘now a permanent adjustment’: Motorway service station operator Welcome Break said it has noticed an uplift in trade since Easter following a quieter start to 2024, and that lower weekday commuter trade and higher weekend leisure trade is “now a permanent adjustment”. The company, in its accounts for the year to 31 December 2023, said: “While a slightly quieter start to the 2024 was noticed, we have seen the expected uplift in trade from Easter onwards. The growth in UK travel from staycation holidays has always delivered excellent results for the business over the peak summer holiday period, from June to September, and this is expected to be repeated in 2024. During the peak summer period in 2023, many sites and units broke their weekly trading records, evidencing the seasonality of the business and the importance of this period to the overall business performance. Outside of the peak holiday periods, motorway traffic continues to be slightly below pre-pandemic levels due to continued homeworking, particularly during the beginning and end of the working week. This now appears to be a permanent adjustment to the weekly profile of transactions, with marginally lower commuter trade during weekdays and higher leisure trade at weekends.” It comes as the business reported a drop in turnover for the year, to £917,468,000 from £944,119,000 in 2022. Pre-tax profit grew from £26,888,000 in 2022 to £35,953,000, while Ebitda was up from £106,165,000 to £111,418,000. The net liability position of the group at the year-end was £125m (2022: £99m liability). Capital expenditure in the year was £20.8m (2022: £27.2m), which included costs for a new service area at Newark in Nottinghamshire. “Other service area sites are in the pipeline and are at various stages of the planning application process,” director John Diviney said. “Active plans are in place to acquire land and planning permission for further sites.” A roll out of EV charging points is expected to “increase dwell time required for EV drivers” and “drive additional transactions in the amenity building on sites”. A dividend of £51.25m was paid during the year (2022: £60.0m), and in April 2024, the directors proposed and paid a further dividend of £10m.
Tommi’s Burger Joint UK business placed into administration: The UK business of Icelandic brand Tommi’s Burger Joint has been placed into administration, Propel has learned. Launched in Iceland in 1981 by Tomas Tómasson, the brand launched here in 2012 as a pop-up before permanent sites opened in London’s Marylebone, Chelsea and Soho. The Chelsea site has since closed, and the site in Berwick Street, Soho, has also recently been shuttered, but the brand still operates a site in Thayer Street in the capital. At the end of 2017, the company opened a regional site in the Oxford Westgate scheme, which has now also closed. The wider business also operates sites in Iceland, Germany and Denmark. Propel understands that advisory firm Eddisons was seeking expressions of interest in the UK business with indicative offers accompanied with proof of funding required by 13 June, with best and final offers due by 17 June. Propel now understands that Begbies Traynor has been appointed as administrators to the UK business of Tommi’s Burger Joint.
Chestnut adds north Norfolk hotel to portfolio: East Anglian pub company Chestnut Group has acquired Le Strange Arms in Old Hunstanton, a hotel on the north Norfolk coast, for an undisclosed sum. Le Strange Arms features 60 bedrooms, self-catering lodges and The Mariner pub, which Chestnut said is “almost its own ecosystem”. Following the acquisition of The Old Bridge Hotel in Huntingdon and the reopening of The Maltings in Weybourne in early August, Le Strange Arms will become part of the 17-strong group’s latest concept of “Big Houses”. Founder and managing director Philip Turner said: “We are delighted to have acquired this iconic venue. We’ve made no secret of the fact that we believe that Norfolk is strategically important to our growth ambition. I have personally known the property for many years and am honoured to have the opportunity to navigate Le Strange Arms and The Mariner pub in the next leg of its journey. Our model has always been about identifying destination properties in the east of England, bringing in investment, working with our communities and building a guest experience to be proud of. Since March 2020 we have committed significant investment in Norfolk through business acquisitions and strategic development of assets to build a portfolio of almost 200 bedrooms, provided employment opportunities for more than 250 people and established core supplier relationships across the region driving localised economic growth. This is a hugely exciting project for the team at Le Strange, Chestnut and our guests.”
Knoops lines up Northern Ireland debut site: Luxury hot chocolate shop concept Knoops has lined up its first opening in Northern Ireland, in Belfast. The 20-strong business, which recently opened in Bristol, will open in the Victoria Square shopping centre, in the Northern Irish capital, later this year. The company also has openings lined up on the former Trailfinders unit in Exeter High Street and at 22-23 Parliament Street, York. An opening in Newcastle is also believed to be in the group’s pipeline. Knoops, which made its Scottish debut in March with a launch at 11-15 Victoria Street in Edinburgh Old Town, has a long-term target of 120 stores here and 3,000 globally by 2030. Earlier this year, Knoops’ executive chairman and chief executive William Gordon-Harris told Propel there was “phenomenal momentum across the business” as it enjoyed a record start to the year. Knoops completed an £8.3m fundraising last November to aid its growth plans.
Big Easy set for ‘transformational’ improvement in revenue and financial performance: Big Easy, the London barbecue concept, has said it is set for a “transformational” improvement in group revenue and overall financial performance having acquired two sister companies operating its restaurants this year. It comes as the company, which employees circa 300 staff across its five sites, reported turnover increased to £18,566,312 for the year ending 30 July 2023 compared with £18,101,472 the previous year. For the year ending 28 July 2019 – the last full year before the pandemic – the business turned over £20,595,992. Ebitda stood at £1,075,000 compared with £1,140,000 the year before. Pre-tax profit was up to £43,618 from £32,491 the previous year. In his report accompanying the accounts, founder Paul Corrett said: “Food and beverage and associated costs amounted to 31.6% of turnover compared with 31.9% for the comparative period, and net staff costs amounted to 31.4% of turnover compared with 34.4% for the comparative period, which resulted in a gross profit margin of 37.0% compared with 33.7% for the comparative period. We expect to report an even more successful year for the year to July 2024 in terms of group trading and profitability compared with that achieved for the year to July 2023. In 2024, the group has acquired two sister companies operating Big Easy outlets in Bluewater shopping centre in Kent and at Westfield in Stratford, east London, which will result in a transformational improvement in group revenue and overall financial performance. The group continues to look at opportunities when they arise and future new openings will be considered based on market conditions.” The company did not receive any government grants (2022: £3,525). No dividend was paid (2022: nil).
Daisy Green to open new venue in London’s South Kensington: Australian restaurant group Daisy Green Collection is to open a new site in South Kensington, west London. The company is launching Glamarama Green in Exhibition Road on Wednesday, 7 August. The company said Glamarama Green “mixes inspiration from Australia’s glamorous Tamarama beach in Sydney with fashion and design from the nearby Victoria & Albert Museum”. The site “promises fabulous style and tongue in cheek humour through a series of bespoke art commissions by exceptional artists including Rose Blake and Collagism, alongside statement prints from Iconic Images”. The 1,600 square-foot restaurant will have a heated outdoor terrace with 40 covers and a secret downstairs William Morris-inspired Green Room, featuring more than 25 portraits of fashion icons by illustrator Rose Blake. In addition, there will be a vintage vinyl record player and a huge collection of records for “laid back listening”. Last month, the 16-strong business opened a site in nearby Holland Park after taking over the site of the Holland Park Cafeteria.
Australia cafe concept to make UK debut: Australia cafe concept Rusty Rabbit is to make its UK debut. With two cafes in the Sydney suburbs of Darlinghurst and St Leonards, brothers Jamesray and Joshua Khoury are now bringing their concept to Notting Hill in west London. Billed as a Sydney brunch club, it serves up a menu of all-day brunch, burgers and pancakes including lamb eggs – lamb kafta, grated cucumber, mint pomegranate and zaatar poached eggs on sourdough with labne; and pancakes with ricotta, strawberries, berry compote, passionfruit, crushed pistachios and maple syrup. “We're doing our full Sydney brunch menu,” the brothers told Hot Dinners, adding that in London, they’ve teamed up with another Aussie-owned and London-based company, The Roasting Party, for the coffee supplies.
Brother Marcus to open in London’s Covent Garden: Mediterranean restaurant concept Brother Marcus is to open its fifth site in London, in Covent Garden. The company will open in the former Miscusi site in Slingsby Place later this year. The new 4,190 square-foot, two-floor, venue includes two terraces overlooking The Yards’ St Martin’s Courtyard and will have two bars – one on each floor – and an open kitchen. Founded in 2016 by three school friends, Alex Large, Arthur Campbell and Tas Gaitanos, Brother Marcus currently operates sites in Spitalfields Market, Islington’s Camden Passage, South Kensington and Borough Yards. Large and Gaitanos said: “After four successful sites across London, we knew we wanted our fifth location to be spectacular, and with its two floors and terraces overlooking The Yards, 23 Slingsby Place certainly delivers the wow factor. We’re thrilled to be bringing the Brother Marcus concept to central London with our largest site to date, and look forward to establishing the business firmly in the heart of Covent Garden.” In April, Propel revealed Brother Marcus was to return to the expansion trail after 12 months of consolidation, with plans to reach ten sites in London over the next few years. To aid its plans, the company hired Dorian Waite, co-founder of the Active-backed Honest Burger, and former operations director of Bill’s, as a non-executive director. Italian pasta concept Miscusi closed its remaining UK site in Slingsby Place last autumn. It had also operated a site on the former Masala Zone premises in Upper Street, Islington. Hanover Green and DCL acted for The Yards, which is owned by Longmartin Properties, a joint venture between Shaftesbury Capital and the Mercers’ Company. Savills represented Brother Marcus.
Din Tai Fung sees UK operations return to profit as turnover hits record £15.2m: Taiwanese dim sum brand Din Tai Fung, which operates more than 160 restaurants worldwide, saw its UK turnover increase 66.5% to a record £15,216,883 for the year ending 31 December 2023 compared with £9,137,427 the previous year. The company, which has three UK sites, posted a pre-tax profit of £507,208 compared with a loss of £247,483 the year before. Director Ben Elliott, in his statement accompanying the accounts, said: “The directors were extremely satisfied with the company's results for the year that reflects the first full year’s performance from the company’s second prominent London West End location and the first full year’s results post-covid. While the company has achieved good increase in takings, it has not been immune from cost inflationary pressure in relation to the cost of food products, labour costs and energy during the year.” The company did not receive any government grants (2022: £6,000). No dividend was paid (2022: nil). Din Thai Fung’s UK sites are all in London – in Covent Garden, Centrepoint and Selfridges in Oxford Street.
Pret makes Madrid debut with double opening: Pret A Manger has made its debut in Madrid with the opening of two sites in the Spanish capital. Ibersol Travel España, the travel restaurant division of the Ibersol Group, has opened the Pret sites at Adolfo Suárez Madrid-Barajas airport. The two companies have already teamed up to open four sites in Spain, in the airports of Josep Tarradellas Barcelona-El Prat (2), César Manrique de Lanzarote and Tenerife Sur-Reina Sofía. Ibersol said it had several more sites in the pipeline, including a third Pret at Barajas Terminal 1 in October. The two new Madrid sites are located in the Air Zone of Terminal 4. One located in the North Dock, with a surface area of 226 square metres and capacity for more than 90 people, and another in the South Dock, with capacity to accommodate more than 50 visitors. Dr Alberto Teixeira, president of the Ibersol Group, said: “We continue to make progress in our expansion plan for Pret in the Iberian Peninsula, with our fifth opening in Spain. On this occasion we have reached a very important milestone with the brand's arrival at Adolfo Suárez Madrid-Barajas airport, one of the most important and busiest airports in the world. It will undoubtedly allow us to increase the visibility and recognition of the brand among the thousands of people who pass through the airport every day, and we are convinced that Pret will become a meeting point at the Madrid airport.” Pret currently has more than 660 sites in 18 countries.
Wasabi reopens largest revenue site in the US: Wasabi, the sushi and bento chain backed by Capdesia, has reopened its largest revenue site in the US after three years of closure. The 41-strong restaurant business, which is led by Henry Birts, has reopened its site in Penn station. Wasabi already operates sites at the Fulton Center, World Trade Center and in Times Square. Birts told Propel in April: “Our three-strong New York business was profitable at a group level in 2023 and we are reopening our Penn station location in summer 2024. Penn was our largest revenue and profit generator before redevelopment of the whole scheme began in 2021.” In the spring, Wasabi told Propel it was looking for new UK restaurant expansion opportunities, and saw “huge potential for growth for the brand both within and outside London” on the back of a strong 2023. Birts told Propel: “We are investing heavily in the core brand and business. We are also now looking for new UK restaurant expansion opportunities, where we see huge potential for growth for the Wasabi brand both within and outside London.
Marston’s completes sale of 40% stake in brewing JV: Marston’s has completed the sale of its remaining non-core brewing assets to Carlsberg for £206m in cash, as it looks to create a business entirely focused on pubs. In July, Marston’s announced the sale of its 40% stake in Carlsberg Marston’s Brewing Company (CMBC), which was formed in 2020, as it establishes “a purely focused pub business with a strong position in the UK market and significant opportunities for further growth” and delivers on the company’s stated de-leverage strategy creating a “stronger balance sheet and a step change in financial flexibility”. Completion of the deal was targeted before the end of September 2024 and Marston’s has said the disposal has completed. Marston’s said it will continue its strong partnership with CMBC through the long-term brand distribution agreement that remains in place. The valuation on the deal represents an enterprise value multiple of 14.5 times Ebitda and 24.3 times Ebit for the 12-month period ended 31 December 2023.
Novikov sees UK turnover fall slightly ‘as trade normalises after covid pandemic’: Novikov, which operates two restaurants and a lounge bar under one roof in London’s Mayfair, has reported turnover fell slightly to £29,324,679 for the year ending 31 October 2023 compared with £29,428,615 the year before “as trade normalised following the covid pandemic”. Pre-tax profit dropped to £4,883,715 from £6,835,490 the previous year. A dividend of £4,675,444 was paid (2022: £6,174,742). Arkady Novikov owns the Novikov group of companies, which alongside his eponymous Mayfair site, operates more than 250 restaurants across Russia under 14 hospitality brands. He was the sole franchisee of Krispy Kreme in Russia until the US doughnut and coffee brand ended the agreement in May 2022 following the invasion of Ukraine. In response, Novikov was reported to have launched a chain of Krunchy Dream cafés on the sites of former Krispy Kreme stores in Russia.
Former MacMerry 300 sites brought to market as ex-owner banned from being a director: A pair of sites that were previously operated by Dundee hospitality business MacMerry 300, which ceased trading in summer 2022, have been brought to the market. Christie & Co has been instructed to market the Bird & Bear and Abandon Ship, a pair of adjoining bars located in Whitehall Crescent, in Dundee city centre. The Bird & Bear has capacity for 80 customers while the neighbouring Abandon Ship offers a range of speciality drinks, beer and Americana-inspired food “in a laidback, quirky setting”. Bird & Bear and Abandon Ship were previously owned by MacMerry 300, which at one time operated 11 sites across Glasgow and Dundee. It was bought from liquidation by companies controlled by its founders in 2022. The Bird & Bear and Abandon Ship sites are on the market with a leasehold asking price of £160,000. The current owners are wishing to sell to focus on other interests. It comes as the Daily Mail reported that Phil Donaldson, one of the former owners of MacMerry 300, has been disqualified for 11 years after applying in 2020 for £100,000 he wasn’t entitled to via a government scheme before transferring the cash into another account. He has been banned from being a company director until 2035.
Activist shareholder urges C&C Group to shake-up board: C&C Group, owner of the Tennent’s, Magners and Bulmers Ireland brands, and Matthew Clark, Bibendum Wine and Walker & Wodehouse, has faced further criticism from activist shareholder, Engine Capital, which has urged the need for boardroom change after “years of underperformance”. In June, Engine Capital, which owns just under 5% of C&C’s shares, demanding a strategic review process that could lead to the drinks business going private. The investor has now published a further open letter aiming to persuade C&C to accept its nominations for two “highly qualified” director candidates. Engine Capital’s proposed personnel are experienced investor and investment banker, Ryan Dublin, and Alan Hibben, a seasoned former investment banker and private equity executive. Managing partner Arnaud Ajdler said: “To help catalyse long overdue improvements at C&C, we are seeking to elect two highly qualified candidates at the company's annual meeting on 15 August. Unlike the current board, our candidates have skin in the game (both candidates have committed to buy shares personally), an ownership mentality and the relevant financial background to help create a sense of urgency and focus on delivering long-term value for all shareholders and stakeholders.” Ajdler said since Engine Capital’s previous letter, it had approached C&C’s board to discuss director representation but that they showed “absolutely no interest in trying to resolve this matter privately”. In response, C&C stated: “C&C has always engaged openly with its shareholders, and will continue to do so. This includes regular dialogue with Engine since it invested in the company, and in particular since its open letter of 24 June 2024 and its notification of intention to propose the appointment of additional directors to the board. The board of C&C is reviewing the contents of Engine’s recent letter and will provide a response in due course.” At the end of June, C&C posted a £96m loss following accounting errors discovered in its previous results, which prompted then-chief executive Patrick McMahon to stand down from his role. Former Marston’s chief executive Ralph Findlay has been appointed as chief executive while a long-term successor is found.
|
|
|
|
|
|
|
