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Morning Briefing for pub, restaurant and food wervice operators

Wed 28th Aug 2024 - Propel Wednesday News Briefing

Story of the Day:

Greencore CEO – meal deals are getting posher as supermarkets take on Pret a Manger: Meal deals are getting posher as supermarkets take on Pret a Manger, according to the boss of Britain’s biggest sandwich maker. Dalton Philips, the chief executive of Greencore, which makes sandwiches, soups and ready meals for most of the major supermarkets, told The Telegraph his customers were demanding higher quality sandwiches amid intense competition to lure returning office workers. “You’ve seen this huge improvement in quality – there’s almost been this race,” he said. “You have the specialists out there – Pret would obviously be one – and they’ve for many years been rowing their own boat. I think the [supermarkets] have said ‘no, we’re going to start really investing in quality’.” Greencore makes around 779m sandwiches every year, along with millions of packs of sushi, soups and packaged ready meals, employs around 13,600 people across the UK. Customers include Marks & Spencer, Sainsbury’s, Morrisons and Aldi. Philips said the push for posher meal deals started after the pandemic as office workers gradually returned to city centres. “It started about two years ago,” Philips said. “If you look at all the retailers now, all of them have done a turn on their food-to-go propositions and the quality has been elevated.” In a sign of just how posh the meal deal has become, Waitrose launched its first-ever lunchtime offer, priced at £5, last August. Philips, who ran Morrisons from 2010 to 2015, said office workers were also becoming more “experimental” with their meal deal options, encouraging supermarkets to be more innovative. The marked increase in quality and innovation means supermarket meal deals now pose a “real challenge” for the likes of Pret, he added.
 

Industry News:

Videos from Social Media for Profit Masterclass available to buy: The videos from this year’s Social Media for Profit Masterclass have been made available for Propel subscribers to buy. The six videos – totalling three hours and 40 minutes of content – from the social media boot camp provide insights into how to build sales and brands using social media. Led by Mark McCulloch, who has more than 20 years’ brand, marketing digital and social media experience that includes senior positions at Pret A Manger and YO!, the event gives an overview of the latest trends in social media, including the impact of artificial intelligence, the rise of creator content in advertisements, and the growing significance of TikTok Shopping. McCulloch is joined by Alison Battisby, founder and director of social media consultancy Avocado Social, and they also share how to develop a robust social media strategy, engage audiences through experiential storytelling and address the challenge of getting non-marketing stakeholders to believe in the value of social media. The videos are available for £250 plus VAT by emailing: kai.kirkman@propelinfo.com.

Premium Club members to receive Multi-Site Database with 3,232 operators and 44 new companies on Friday 30 August: Premium Club members are to receive the Multi-Site Database on Friday, 30 August. The next Propel Multi-Site Database, produced in association with Virgate, provides details of 3,232 multi-site operators and is now searchable in seven main segments. The database features 953 (29%) operators from the casual dining sector, 780 (24%) pub and bar operators, 540 (17%) cafe bakery, 441 (14%) quick service restaurants, 265 (8%) hotel, 205 (6%) experiential leisure and 55 (2%) fine dining. It is updated each month, and this edition includes 44 new companies. The database includes new companies in the pub and bar operator sector such as Irish-themed bar concept Katie O’Briens, which has new openings in Leeds and Birmingham; Union Inns, opening The Woodman in Birmingham; and Wren Pubs, formed by Jack Greenall. Premium Club members also receive access to five additional databases: the New Openings Database; 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.

London restaurant openings increase but closures more than double: London saw 137 restaurants launched in the year to 31 July 2024, up 6% on last year (129), according to a new survey. The survey from Hot Dinners, the London restaurant website, and property agent Robert Irving Burns found that the rate of closures during the period more than doubled, with 33 shutting in the first half, up from 14 last year. Of the new openings in 2024, almost one fifth (19%) are located in prime central W1 postcodes, encompassing Mayfair and Marylebone, down from 26% last year. Some 26 (19%) of these new openings were in W1, which includes the areas of Mayfair, Fitzrovia, Marylebone and Soho. In second place was EC (Shoreditch, Hoxton, and The City) with 14 (10%), and SE1 (Borough, London Bridge, and South Bank) came third with ten new openings in this six-month period (7%). Antony Antoniou, chief executive of Robert Irving Burns, said: “London’s restaurant scene has proven remarkably resilient in the face of economic headwinds, which has sustained demand for Grade A commercial space in Prime Central areas such as Mayfair and Marylebone. However, the majority of new openings (52%) have been outside of the key premium hotspots such as Mayfair. The high rents in these prime central London locations are pricing out many of the new restaurants and leading businesses to pursue a different strategy, with some targeting the more residential working from home and weekend trade. The advantages of being located in a secondary location, such as cheaper rent per square foot and fewer competitors, are often outweighed by the downsides of much lower footfall and lack of visibility, due to lack of proximity to shops, tourist attractions and offices. The success of restaurants in outer locations will be down to their location in these places. Those located in areas of high footfall and visibility will likely be able to capitalise on the working from home and weekend trade, while being able to offer greater value for money due to their lower costs.”

Contract caterers score double-digit growth in strong second quarter of 2024: Britain’s leading contract caterers achieved sales growth of 10% in the second quarter of 2024, according to the latest Contract Catering Tracker from CGA by NIQ and Bidfood. It is the 13th quarter of growth in a row and an improvement on the rate of 7% recorded in the first quarter of this year. Growth in sales for the last 12 months compared to the previous 12 months has reached 13%. The strong performance comes despite another fall in the outlets served by contract caterers. The Tracker shows they occupied 3% fewer units in the second quarter of 2024 than 12 months earlier, continuing a steady decline since the start of the covid-10 pandemic. Karl Chessell, business unit director at CGA by NIQ, said: “Double-digit sales growth is a sign of both the strength of Britain’s contract caterers and the spending confidence of the clients they serve. Nevertheless, ongoing contraction in the outlets served by caterers is a reminder of the strong competition for existing clients and the challenge of attracting new ones.” Debra Morrell, business development controller for B&I at Bidfood, said: “It’s really pleasing to see a strong second quarter this year compared to the more challenging picture at the start of the year. April and May were excellent months driving fantastic market growth, despite the wet spring and early summer we saw, and evidence of the underlying progress that the sector continues to show.” Kate Nicholls, chief executive of UKHospitality, added: “The consistent growth we’re seeing in contract catering is really positive, and shows the valuable contribution the sector continues to make to the economy. Measures to help the sector recruit, particularly those out of work, would be a significant driver of continued growth in contract catering.”

David Coffer passes away: David Coffer, who established the hospitality sector’s first dedicated advisory business, has passed away, aged 76. With a career spanning more than 50 years, Coffer was widely acknowledged as the driving force behind the recognition of leisure property as a distinct and important property sector, deserving of special techniques in dealing with lease disputes, valuation and approach to agency skills. Having established the sector’s first dedicated advisory business (Davis Coffer Lyons) David – known by his peers as “Mr Leisure” –dealt exclusively with all aspects of licensed and leisure property throughout the UK, Europe and North America for more than four decades. He was the founder and president of the Restaurant Property Advisors Society and a Fellow of the RICS. He chaired numerous industry committees and was also past chairman and a major shareholder of Earls Court and Olympia. Through the Coffer Foundation, he also gave support to a wide range of charities, and in 2010, he was named one of London’s 1,000 most influential people by the Evening Standard. The Coffer family said: “We are deeply saddened to announce the death of beloved husband, father, grandfather, brother and friend David Coffer, after an inimitably strong battle with illness. A man of profound insight and intellect, lionlike determination and courage, and unrivalled kindness; he could not fail to have an impact on anyone who met him. A supernova, his brightness will shine for decades on the many people whose life he influenced. We have received so many kind messages and would like to thank all well-wishers for their support as we come to terms with our loss.”

Oasis reunion will give ‘supersonic’ economic boost to UK: Oasis’ newly announced tour marks will have businesses near the gig venues will almost as excited as fans, experts have said. The band have announced a series of tour dates spanning London, Manchester, Cardiff, Edinburgh and Dublin next summer. Thomas Pugh, economist at RSM UK, told the Evening Standard that the tour will “undoubtedly be a phenomenal sell out, which will also cause a spike in demand for accommodation and hospitality in those cities lucky enough to be hosting a gig”. He added: “This potentially presents a very profitable opportunity for the hospitality industry, especially hoteliers. For example, Taylor Swift and the Foo Fighters saw hotel prices in Cardiff, which will also host an Oasis gig, rise by up to 500%.” Sacha Lord, night time economy adviser for Greater Manchester, estimated the band’s run in the city would benefit the city’s economy by more than £15m. “The impact of welcoming 80,000 people each night for the four planned gigs at Heaton Park cannot be underestimated,” he said. “Events aren’t just about ticket sales, they have huge impacts on the local area and our hotels, pubs, bars, restaurants will all see the benefit, including extra hours for staff, as well as renewed global attention on the region and its cultural history.” Kate Nicholls, chief executive of trade group UKHospitality, added: “It’s clear the pull of live music is as strong as ever. Hotels will get booked up quickly as fans secure tickets, and pubs, bars and restaurants will all be packed next summer with concert-going fans.”

Job of the day: COREcruitment is working with a leading drinks business to hire a regional sales director. The role is London based, with travel across the south east. The hiring client is looking to pay up to £150,000. A COREcruitment spokesman said: “This business is one of the leading players in the drinks industry, known for its diverse portfolio of brands and exceptional service across the on and off Trade. It is continuing to expand and grow its business so are on the search for a senior sales leader. As the regional director, you will be responsible for overseeing and driving the performance of its business operations across the south of the UK. The role requires a strategic leader with a proven track record in the drinks industry or a related field. You will manage a large team, ensuring that all regional goals are met, while also contributing to the national strategy.” For more information and to apply for the role, please contact Mark Girdlestone at mark@corecruiitment.com.
 

Company News:

Brakspear CEO – current trading satisfactory, looking for £2m-plus turnover sites for managed estate: Tom Davies, chief executive of pub operator Brakspear, has told Propel that current trading across the business has been “satisfactory” but that the company has some good momentum going into the final four months of the year. Over the weekend, the business reported turnover increased 9% to £38,641,816 for the year ending 31 December 2023 compared with £35,407,477 the previous year. Revenue at its managed business, the ten-strong Honeycombe Houses, grew to £20,073,910 from £17,862,826 the year before. Income from its 115-strong leased and tenanted income was up to £18,567,906 from £17,544,651 the previous year. Ebitda before exceptional items was down 3% to £10,884,000 (2022: £11,226,000). Davies told Propel: “Early summer was poor versus last year, which resulted in weaker sales, but August has been strong, and we have some good momentum going into the final four months of the year. We have acquired some quality freeholds recently – most notably the Swan in Chiddingfold and the George in Malden. Both of these sites turn over in excess of £1m, have bedrooms and will slot nicely into our quality leased and tenanted business. We are still looking for some high quality, big turnover sites to add to our Honeycomb Houses business. These sites need to turnover more than £2m per year and we would like to add at least two of these before the end of 2024.” On the Ghyll Manor site in Rusper, West Sussex, which the business acquired in 2022, Davies said: “At last we have received planning for Ghyll Manor, but as building costs have risen exponentially since the acquisition, the viability of the project has been called into question.  We are reviewing our options for the site, which will likely involve a smaller scheme than originally planned.”

Indoor cricket concept to launch debut site later this year, aiming for eventual estate of 200 venues: Indoor cricket concept Hitz Cricket is set to launch its debut site later this year and is aiming for an eventual UK estate of 200 venues. HITZ Cricket will launch its first site in East Molesey, Surrey, in late 2024, with the aim of opening a further five sites across the UK by the end of 2025. Following this, it plans to be operating 200 in the UK within five years, reports Insider Media. The venues, powered by BatFast’s SmartPlay technology, will work on a monthly subscription model. Hitz Cricket chief executive Dominic Reed, a former executive at five-a-side football concept Powerleague, said: “We have ambitious plans to locate our market-leading proposition in hundreds of sites across the UK and further afield. We look forward to seeing the cricket industry adopt this new way to play.” BatFast chief executive Runish Gudhka added: “HITZ Cricket is set to revolutionise the way cricket is played. Our collective goal is to make high-quality cricket facilities accessible to everyone, addressing the well-documented issues of limited facilities and high costs associated with playing cricket. With HITZ, we’re creating a first-of-a-kind model that will provide the best value for time and money that cricketers from all ages, skill levels and genders will get. We are confident this innovation will attract both investors and industry leaders eager to be part of the future of cricket.” A new report produced by Propel on the fast-growing experiential leisure sector was launched on 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 180 companies, 3,500 sites and a 35,000-word report. The report is available for £595 plus VAT although Premium Club members can receive the report 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.

Judy Joo launches kiosk version of Seoul Bird concept: Chef Judy Joo has launched a kiosk version of her Korean concept, Seoul Bird, in London. Joo has launched Seoul Birdie at the Tottenham Hotspur Stadium in partnership with Levy UK. If successful, it is thought that the new kiosk version will be rolled out to other sports stadiums. Joo currently operates Seoul Bird sites in Westfield London and Canary Wharf, and last year launched licensed sites at the Barclays arena in New York, home to the Brooklyn Nets basketball team, and in the food hall of an MGM hotel and casino in Las Vegas. Earlier this year, she said she envisaged opening “five to seven” owned sites under her Korean concept, Seoul Bird, in London, before exploring taking the brand to other cities in the UK. She told The Times: “We created this concept with the idea to take it and franchise it, and with the idea that there is an exit behind it. This is not Michelin star cooking; it is £13 a head. It is something that we need to be able to teach other people to do in order to get it to scale, make it a global brand and to then, eventually, sell it.” At the same time, she was in talks with hospitality companies such as Levys and North Delaware, which operate food brands at stadiums and other venues in the US and UK, about adopting the brand at more of their sites. She said: “The arena game also spills into the airport game, so we are looking at airports. Operating in airports is between 30% and 35% more expensive than operating on a high street, so you have to bring in an operator who is seasoned there, and that has multiple units in the airport already.”

Deliveroo – still taking learnings from first high street restaurant: Delivery firm Deliveroo has told Propel it is still taking learnings from Pizza Paradiso, its first and still only high street restaurant, which it opened in London, in spring 2022. At the end of 2021, Propel revealed that Deliveroo was to launch its first high street restaurant, which it stated would be used to train staff and help it “find better ways to serve our partners”. The site opened three months later in New College Parade, near Swiss Cottage tube station, north west London, under the name Pizza Paradiso. A Deliveroo spokesman told Propel at the time: “Deliveroo will manage a high street restaurant to deepen staff expertise and understanding of restaurant management so we can find new and better ways to serve our partners. Staff will learn about how to manage restaurant dine-in and delivery services. We want to understand restaurants’ pain points with the aim of solving them, and to do this by having a deep understanding of restaurant owners’ mindset.” Almost two and a half years on, Pizza Paradiso continues to trade. A spokesperson for the delivery firm told Propel: “Deliveroo continues to use Pizza Paradiso to test and take learnings on the business across different departments – logistics, advertisement, promotions, reporting etc.” The spokesperson also confirmed that there are no current plans for a further site under the concept.

JD Wetherspoon to open new £2.8m Waterloo pub next week: JD Wetherspoon has announced it is to open its new £2.8m pub at London Waterloo Station next week (3 September). The Lion & the Unicorn will open in ‘The Sidings’, within the former Eurostar terminus, and will create 70 new jobs. It will be open from 6.30am until 12 midnight Monday to Thursday, from 6.30am until 1am on Friday and Saturday, and from 7.30am until 12 midnight on Sunday. Food will be served throughout the day, from opening until 11pm every day. The new pub will specialise in real ales and traditional ciders, as well as craft and world beers, serving a wide range of different draught ales, as well as bottled beers, including those from local and regional brewers. Wetherspoon regional manager, Barry Brewster, said: "We are looking forward to welcoming customers into The Lion & the Unicorn and we are confident that the pub will be a great addition to Waterloo’s social scene.”

Lane7 plans Cambridge opening: Boutique bowling company Lane7 is looking to a site in Cambridge to its opening pipeline. The 13-strong business, which is currently gearing up to open its debut international site, at the Playce at Potsdamer Platz, in Berlin, is planning to open a site as part of the redevelopment of the city’s Lion Yard shopping centre. In June, Propel revealed that Lane7 had secured a second site in London, a 15,000 square-foot site in Camden Market which is set to open later this summer. It is also lining up sites in Lincoln and Milton Keynes, and two in its home city of Newcastle, including a new concept for the business. The company, which recently opened in Altrincham, will open its first site in Ireland, in Dublin, this December. Will Biggart, of Torridon, acts for Lane7.

Mowgli launches new loyalty app: Indian street food brand Mowgli has announced the launch of a new app to reward loyal guests. The 24-strong company said the app, which is available for free on the iPhone and Android app stores, features a straightforward stamp-based system. It said: “Users can easily create a membership and earn a stamp for each visit when they spend £10 or more. After collecting six stamps, they will receive a £25 voucher code for their next visit. The app also features a refer-a-friend scheme, which gifts free stamps for each qualifying referral.” Mowgli’s existing passport loyalty scheme will remain. Each restaurant has its own unique stamp, which guests collect as they visit different Mowglis across the country. Customers who accumulate five unique stamps from different restaurants receive £25 off their bill and £50 after collecting ten stamps. Nisha Katona, founder and chief executive of Mowgli, said: “We are thrilled to announce the launch of the Mowgli Club Rewards. Loyalty benefits need to be delivered in a way that is fun and, frankly, aesthetically awesome. The Mowgli Passports physically capture this simple beauty, and I have been holding out to develop an app that is similarly super simple, super cute and super Mowgli.” Last month, Propel revealed that Mowgli is set open its second site in London after securing a site at Westfield Stratford for an opening later this year. The company recently opened a site at the Designer Outlet in Bridgend and also has an opening lined up in Newcastle’s Nelson Street, for later this year. 

Woodspeen operator narrows its losses, ‘well positioned for success in 2024’: The operator of Woodspeen, the Berkshire restaurant which until last year held a Michelin star, narrowed its losses in the year to 27 December 2023. WSH Restaurants is a holding company of Westbury Street Holdings, which is the parent company for catering brands such as Benugo, Searcys and BaxterStorey. It also operates The Boxford restaurant in Berkshire and The Star Inn in Sparsholt, plus two new sites set to launch this year. These are The Braywood, which will open on the site of the former The Royal Oak pub in Bray, and a restaurant in Fitzrovia, which will mark the group’s London debut. The group made a pre-tax loss of £405,000 in the year compared to £936,000 in 2022. Its turnover was down slightly from £5,701,000 in 2022 to £5,307,000. The group also received £150,000 (2022 £392,000) as part of the administration and liquidation of the group of companies headed by subsidiary WSH & Mark Hix Restaurants in 2020. Director Marc Bradley said: “2023 remained a challenging environment for hospitality post-covid. Continued inflationary pressures, a cost-of-living crisis and high energy prices led to a tough trading environment. Nevertheless, the business was able to retain its core staff, with the team performing strongly, and further investing in the group with the launch of The Boxford. Following a temporary closure in 2024 and a refresh, the group will reopen its restaurant in Fitzrovia. While the sector challenges seem set to continue, the directors believe the foundations of the business are strong and it is well positioned for success into 2024.”

Breakthrough Bars set to open seventh site and third under Bloom brand: Breakthrough Bars, the new bar and nightclub vehicle co-founded by Disco Bowl chief executive Pete Terry in August 2023, is set to open its seventh site and third under its Bloom brand. It will open Bloom Wigan in the former Pound Pub building under Jak’s nightclub on King Street, reports Wigan Today. It will be a flagship site for Breakthrough Bars and its third Bloom branch alongside the Hanley and Newcastle-under-Lyne venues. Breakthrough Bars also operates Blame Frida in Stone, Playground in Mansfield and Manhattans and Buddha in Ashby-de-la-Zouch – and earlier this year acquired former nightclub Fever Cannock. Breakthrough Bars general manager Adam Sass said: “Bloom is, as we call it, for the huns. It’s for the girls. What we do really well is bottomless brunch, and every fortnight we will have a mega brunch which incorporates a theme such as Abba, Bridgerton or Harry Styles vs Taylor Swift. On those themed brunches, there will be entertainers and we will pair the specialist cocktails and small plates to that theme.” Sass said in his previous job, he “looked after all the entertainment” for Grosvenor Casinos and Mecca Bingo across the UK. “Before covid, everybody was seeing a decline in late night admissions, and covid kind of accelerated things,” he added. “Now, what we feel the consumer wants is to go out at 2pm with the girls, have a few nice cocktails and be back home for 7pm. Gone are the days of staying out until 6am in a sticky nightclub. It’s very much a focus around that brunch experience for us.”

Travelodge adds to London estate, seeks 100 more sites in the capital: Travelodge, which operates more than 600 hotels across the UK, Ireland and Spain, has officially opened a site in London’s Bermondsey – as the group continues to develop its pipeline in the capital. The 73-room hotel in Bermondsey is the company’s 82nd hotel in London and features the group’s new restaurant concept, 85 Bar Café. Travelodge has more than 300 target locations for hotel sites across the UK, with over 100 of them in London. London Bermondsey Travelodge is one of three London hotels to open for Travelodge this year, with London Oval Cricket Ground Travelodge having opened earlier this year and London Beckenham Travelodge set to open in the next couple of months. Travelodge also has new upcoming hotels in Chiswick and Stratford under construction. Steve Bennett, chief property and development officer at Travelodge, said: “The opening of this hotel marks the continuation of our expansion across the City, and we are excited for what lies ahead as we continue to expand our London estate.”

Northumberland cafe concept set to open second pub location for sixth site: Northumberland cafe concept The Running Fox is set to open its second pub location for its sixth site. Owner Kris Blackburn has entered into what he said is a 50-50 partnership with publicans Paul and Sarah Johnson, who have just reopened The Plough Inn at Powburn after nearly a decade of closure. From the autumn, the venue will also operate as a café during the day – similar to the arrangement at the Farriers Arms in Shilbottle, which also has a The Running Fox cafe. Blackburn also operates standalone cafes in Longframlington, Longhoughton, Felton and Kirkharle. The Johnsons, meanwhile, also run The Ale Gate in Alnwick and previously managed The Narrow Nick in Rothbury. “It’s been a fantastic first few days,” Paul told the Northumberland Gazette. “We’ve had great support from the locals, who are delighted to have their village pub back, but also from people staying at the nearby caravan park. We want The Plough to be at the heart of the community.”

Hertfordshire sustainable kitchen concept to open first London restaurant in two decades this week: Hertfordshire sustainable kitchen concept Lussmanns will open its first London restaurant in two decades this week. It will open in the former Côte Brasserie site at 2 Highgate High Street, reports Hot Dinners. Lussmanns has other restaurants in Hertford, St Albans, Harpenden, Hitchin and Berkhamsted – all in Hertfordshire – and Woburn in Bedfordshire. It also operated an Oxford restaurant before covid. Lussmanns was founded in 2002 by former PizzaExpress Channel Islands operations director and international franchise manager, Andrei Lussmann.

Lancashire McDonald’s franchisee returns to profit as turnover increases to £17.4m: R&L Restaurants, which operates five McDonald’s sites in Lancashire, has reported turnover increased 7.89% to £17,410,627 for the year ending 31 December 2023 compared with £16,137,377 the year before. The company, which employs about 420 staff, made a pre-tax profit of £339,378 compared with a loss of £13,700 the previous year. In his report accompanying the accounts, owner Lawrence Hilliker stated: “The re-imaging strategy continued to have a positive impact on sales growth, which is in line with expectations and objectives. Sales through digital channels – including McDelivery, mobile app and self-order kiosks – have increased during the year. The pace of change in the restaurant industry has accelerated post-pandemic, with customers increasingly looking for greater speed and choice when ordering food. The company will continue to push digital and delivery offerings. The financial performance of the company improved during 2023. This was aided by government support packages such as the 75% business rates relief in the retail and hospitality industry and permanent rent reductions from the franchisor. Higher levels of pricing have been introduced to counteract food cost inflation, which was at an all-time high of 19.10% in March 2023 but has slowly declined throughout the year.” A dividend of £150,000 was paid (2022: £210,000). Hilliker became a McDonald’s franchisee in 1982.

Tofu Vegan confirms September launch for fourth site: Tofu Vegan, the London concept from Zhang Chao, of Xi’an Impression, has confirmed its fourth site, in Fitzrovia, will open next month. The concept will open in the former Dim T premises at 32 Charlotte Street on Thursday, 26 September, reports Hot Dinners. The plant-based restaurant concept takes its menu influences from all over China. Chao launched the concept, which also has sites in Golders Green and Spitalfields, in Islington in 2021.

National Trust-owned hotel group sees rise in both turnover and profit: Historic House Hotels, which operates three sites and is owned by the National Trust, saw a rise in both turnover and profit in the year to 23 February 2024. The company’s pre-tax profit was up from £577,818 in 2023 to £763,291. Turnover grew from £7,428,576 in 2022 to £8,189,256. Of this, £3,689,8098 came from accommodation (2023: £3,422,043), £3,204,053 from food and drink (2023: £2,864,471) and £82,4762 from spa activities (2023: £79,672). It sold 16,738 hotel bedrooms compared with 15,444 in 2023, and 66,227 restaurant covers compared with 58,916 in 2023. “The number of hotel bedrooms sold and number of restaurant covers has increased due to higher levels of activity in the current year,” said director Neil Kenyon. “While the economic environment remains challenging, especially in relation to energy costs, rigorous cost controls have continued to be applied, which place the company favourably to take full advantage of any improvement in the economic climate. The directors consider the performance of the business to be satisfactory. It is envisaged the company will benefit from lower energy prices amid the gradual recovery of the UK economy that can be seen in the early part of the new financial year. The speed of economic recovery and the volatility of energy prices remains of concern, but through careful monitoring of occupancy levels and overheads, notably staff costs, the company hopes to improve on the performance of 2023-24.” No dividend was paid (2023: nil). The three Historic House Hotels are Hartwell House in Aylesbury, Middlethorpe Hall in York and Bodysgallen Hall in Llandudno. In September 2008, Historic House Hotels and all its interest in the three sites became the property of the National Trust, by donation, with all profits henceforward benefiting the houses and the charity.

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