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Morning Briefing for pub, restaurant and food wervice operators

Fri 30th Aug 2024 - Propel Friday News Briefing

Story of the day:

Delivery gains ground as Euros and summer heat shape spending habits: Britain’s leading managed restaurant groups have seen a year-on-year (YOY) increase of 9.4% for delivery sales, CGA by NIQ’s latest Hospitality at Home Tracker reveals. July saw another consecutive month of unbroken sales growth, reflecting sustained consumer demand for delivery options, despite a deceleration from the double-digit growth recorded in May and June. Conversely, takeaway and click-and-collect sales remain static, with a slight decline of -0.2% in July compared to the same month last year. This is a marginal improvement from the -1.1% decline in June, suggesting the rate of decline is slowing. Overall, combined delivery, takeaway, and click-and-collect sales in July 2024 were 5.3% higher than in July 2023. This represents the 14th consecutive month of YOY growth for the sector, further solidifying its resilience despite shifting consumer behaviours and external economic pressures. The split between food and drink sales in the delivery and takeaway channels has remained stable, with food sales comprising 90.3% of the total and drink sales accounting for 9.7%. This consistency highlights the ongoing preference for home-delivered meals over other options. The comparison with July 2023 sales highlights shifting consumer preferences, with consistent delivery sales growth indicating convenience and in home dining is firmly in favour. While delivery sales growth has cooled slightly from June’s Euros spike, it remains clear consumers value the convenience of having meals brought directly to their doorsteps. Additionally, consumers are taking advantage of the good weather to enjoy meals on the go, or as a more budget-friendly option during a month when many focused their spending on events like the Euros tournament and Olympic Games. Karl Chessell, director at CGA by NIQ, said: “Looking ahead, restaurants can continue to capitalise on these trends by offering versatile menu options catering to both delivery and takeaway customers. Plus, seamless customer experiences are crucial for maintaining this positive momentum, from online ordering to timely delivery. Furthermore, pushing drinks remains an opportunity to up-sell and generate incremental sales that are easily added to food-based orders, while offering consumers greater choice than they are likely to have available at home.”
 

Industry news:

Oakman Group HR director Jill Scatchard to speak at Propel’s Talent & Training Conference, open for bookings with 20% discount on tickets for Premium Club members: Jill Scatchard, HR director at Oakman Group, 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. Scatchard will discuss how the award-winning Oakman has kept its staff retention at an all-time high, how its ongoing efforts in six core pillars of engagement – reward and recognition, information sharing, empowerment, well-being, instilling pride and job satisfaction – continue to gain it recognition in the Sunday Times Best Places to Work list, and how ensuring it provides a positive workplace and commitment to the well-being of its team pays dividends. 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 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 QSR sector such as Mary Brown’s Chicken, making its UK debut; Pizza Rana opening in Lytham; and Detroit Slims, a new pizza concept opening in Manchester. 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 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.

Sector raises concerns over new smoking ban proposals: Hospitality sector representatives have expressed concerns over leaked plans that suggest the government is looking at extending the ban on indoor smoking to areas outside pub gardens, outdoor restaurants, shisha bars and open-air spaces at nightclubs, and the “serious economic harm to hospitality venue” it could have. Leaked documents seen by The Sun suggest the proposals, which did not appear in the Labour manifesto, would significantly toughen up the Tobacco and Vapes Bill. Speaking on LBC this morning, UKHospitality chief executive Kate Nicholls said: “A ban on smoking in outdoor spaces comes with the prospect of serious economic harm to hospitality venues. You only have to look back to the significant pub closures we saw after the indoor smoking ban to see the potential impact it could have. This ban would not only affect pubs and nightclubs, but hotels, cafes and restaurants that have all invested significantly in good faith in outdoor spaces and continue to face financial challenges.” Michael Kill, chief executive of the Night Time Industry Association, said: “At a time when our industry desperately needs the freedom to trade, the last thing we need is further barriers.” Emma McClarkin, chief executive of the British Beer and Pub Association, said: “It is deeply concerning and difficult to understand why the government would bring forward proposals that will be yet another blow to the viability of our nation’s vital community assets. We know from experience that this restriction would have a devastating impact on pubs who are already struggling with soaring energy prices and the cost of doing business.” Paul Wigham, chief executive of pub and bar group All Our Bars, said: “People will just stand in the street and smoke. Pub teams cannot control what people do on public thoroughfares, so those areas will be a total mess. We deter people from doing that now because it is not exactly a welcoming sight to gain access to the venue through what look like a mass of redundant doormen standing there smoking.”

‘Radical rethink of hiring practices needed to help tackle sector’s staffing crisis’: A radical rethink of hiring practices is needed to help tackle the sector’s ongoing staffing crisis, a new report has suggested. It outlines findings from the two-year Westminster Works scheme, funded by Westminster City Council, which supported more than 400 businesses and saw 27,000 candidates register interest in job vacancies. The report said while the initial goal of the scheme was to attract more candidates into the industry, it soon became clear that a lack of appetite was not the problem as more than 7,000 people registered interest during the first six weeks. The focus instead turned to the methods businesses were using to hire entry level candidates. A new approach involving ‘experiential recruitment’ and bespoke training modules for candidates with no previous hospitality experience was trialled, with a first of its kind ‘recruitment restaurant’ event run at Westminster Kingsway College. This allowed candidates to take part in live trial shifts and secure on-the-spot interviews for vacant roles. Jackie Bedford, chief executive at Step Ahead, one of the key delivery partners in the initiative, said: “In the early days of the scheme, we quickly realised that the key to attracting and retaining quality staff was not in making the roles more desirable to candidates, but in changing the way businesses approach recruitment. Outdated, CV based applications were causing many people with huge potential and the right personal attributes to be overlooked due to lack of past experience, so this was something we set about to change.” Kate Nicholls, chief executive of UKHospitality, added: “It goes to show the benefit that can be had by looking at existing recruitment practices and trying new methods, with those tested in this scheme clearly providing benefit for both applicants and businesses. Hospitality provides jobs for everyone, whether you have previous experience in the sector or not, and I hope insight from this scheme can enable more people to embark on a rewarding and exciting career in hospitality.” Westminster is home to more than 3,700 restaurants, bars and cafes and a further 4,000 leisure businesses, supporting around 120,000 jobs in the city.

Zero Carbon Forum and BBPA awarded grants to uncover effects of climate change on brewing: The British Beer and Pub Association (BBPA) and Zero Carbon Forum have been awarded grants to research the climate risks facing UK brewing supply chains. They said the research will support the brewing sector to operate in the long term, in the face of the impacts of climate change and biodiversity loss. The funding has come from the Brewers’ Research and Education Fund (BREF). Emma McClarkin, chief executive of the BBPA, said: “This study will give us crucial insights into how climate risks are directly impacting supply chains, and how we can take steps to understand how we as an industry mitigate them.” Mark Chapman, founder and chief executive of the Zero Carbon Forum, added: “The brewing and hospitality industry is under immense pressure, and with the effects of climate change becoming increasingly evident, this research is extremely important to help highlight the current and future environmental risks facing the sector today and how we will overcome them.” Findings from the first phase of the study revealed that brewers are primarily concerned about the critical impact of climate change on their supply chains. The results of the final two parts of the study are expected to be completed in early 2025.

Job of the Day: COREcruitment is working with a contract catering business looking to recruit a retention manager. This is a London based role with a salary of up to £80,000. A COREcruitment spokesperson said: In this pivotal role, the retention manager will be responsible for nurturing and maintaining strong client relationships, developing tailored retention strategies and ensuring their clients remain satisfied and engaged. Your focus will be on understanding client needs, resolving issues proactively and driving long-term partnerships that benefit both the client and our business.” For more information and to apply, please contact Marlene Arlow at marlene@corecruitment.com.
 

Company news:

Young’s CEO – we could get to 300-350 high-quality sites, set to launch loyalty scheme across bedrooms estate: Simon Dodd, chief executive of Young’s, has told Propel that he can see the pub operator growing to up to 350 sites over the next three to five years, as it gears up to launch a loyalty scheme across its bedrooms portfolio. Earlier this year, the 288-strong company acquired the 55-strong City Pub Group business, which Dodd said gave Young’s the ability to look at scale in the likes of East Anglia, Cambridge and Bath. He said: “We can now focus on infill opportunities in these locations. We never had any business in Bath. Now we can have scale in Bath, in Exeter, in Bristol, in East Anglia. Our job now is to start infilling further. City has given us 20 pubs in London and opened up new areas around the country. Plus, we now have sites in Wales, so we are now an international business! I think the geography is now right. We can probably do this for the next ten years, finding eight or nine pubs a year, but if another group comes up, then great. We spent £158m on City, £48m on our core estate and £37m on individual freehold acquisitions in our last financial year. If an amazing site came up, we would look at it, but we need to get the debt down to a normal level and make sure City works. But in the next three to five years, I want to go again. I think we could get to 300-350 high-quality sites.” The City Group deal took the company’s bedroom stock to 1,066. Dodd said: “Three years ago, we were at around 500 bedrooms. Through Lucky Onion and City, we’ve suddenly accelerated our growth and our learning. We’ve put a lot of work into the science, whether it’s dynamic pricing with AI, or improving our presence online. The next thing will be loyalty, which we’re going to try and launch at the end of this fiscal year. It will be bedrooms first, as we think bedrooms are a nice place to start. What we’re trying to do is that you can stay in our pubs in London, but you can also go on a mini break in the Cotswolds. So, it’s not just about that leisure or business customer.” The full interview with Dodd – which includes his thoughts on the wider sector, trading and further growth for Young’s – will be in today’s (Friday, 30 August) Premium Club Opinion, which will be sent to members at 5pm. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Howard Ebison steps down as Crosstown CEO: Howard Ebison has stepped down as chief executive of Crosstown, the artisan doughnut and specialty coffee brand, which was acquired by Karali Snack, part of Karali Group, via a pre-pack administration earlier this summer. Ebison joined last March after more than three years at Hammerson, including a year as managing director asset management. Previous to that, he had stints at Manchester Airport and MAG (Airports Group). In June, Crosstown was acquired by Karali Snack for a total consideration of £500,000. The transaction included the acquisition of 27 operating locations, including the majority of the stores, market units, kiosks, concessions and trucks, as well as the transfer of 140 staff, including the leadership team of the business. Crosstown has been working with its advisers from Interpath Advisory to explore investment options that could support its continued operations and its future expansion. According to the administrators report, Crosstown was loss-making for several years as a result of difficult trading conditions driven by a reduction in demand for premium products and the impact of supply side cost inflation. Karali Group is led by Salim Janmohamed and Karim Janmohamed and is a diversified, multinational hospitality and real estate platform operating franchises in the fast-food, casual dining and hospitality sectors. The company previously operated 74 Burger King restaurants, which were acquired by Burger King UK in October 2022.

Giggling Squid to take on Cote site in Godalming, adds Tony Palmer to property team: Giggling Squid, the Thai restaurant brand backed by the Business Growth Fund, has added a site in Godalming, Surrey, to its opening pipeline. The 52-strong business is understood to have secured the Cote site in the market town’s High Street. Last month, Propel revealed that Giggling Squid, which has further openings lined up in Cobham, Exeter, Knowle, Leeds, Liverpool and York, had secured the Cote site in Hampstead High Street. A Côte spokesperson told Propel at the time that it is looking at larger, city centre sites to grow the business further, and as part of the process, was closing several locations. At the same time, Propel understands that Giggling Squid has added Tony Palmer, former property director at Bill’s Restaurants and Ten Entertainment Group, to its property team. Palmer, who was also previously head of acquisition and development at Mitchells & Butlers (M&B), returns to the sector after spending the last four years as head of property – international at Laser Clinics.

St Austell acquires Ilminster pub: South west brewer and pub company St Austell Brewery has acquired The Bell at Broadway pub in the village of Broadway, near Ilminster. The recently refurbished 17th century inn has a bar, restaurant, wood-fired pizza oven, beer garden and six en-suite guest bedrooms. It will join St Austell Brewery’s estate of 122 leased and tenanted pubs located across the west country, sitting alongside its 44 managed pubs. The pub is being sold by local businessman Robert Doak. St Austell chief executive Kevin Georgel said: “It is a fantastic pub at the heart of its community with an excellent reputation and loyal following – a perfect match for us. We are now searching for the ideal business partner to run The Bell and will be working with Robert to ensure a smooth handover for the team and customers.” Doak, who has owned The Bell for seven years, added: “It was a difficult decision to let the pub go, but I am excited for its future, safe in the knowledge that St Austell Brewery recognises all that has been done to develop the reputation of the pub. Having had a close working relationship with St Austell since we opened, they were the only people we felt comfortable selling to, despite numerous advances over time.”

Jim Robertson steps down from Nightcap: Jim Robertson has stepped down as managing director of Nightcap’s London estate. Robertson joined the owner of The Cocktail Club, the Adventure Bar Group and the Barrio Familia group of bars in February 2020, as managing director of the latter brand. He was promoted from managing director of Barrio Bars to managing director of Nightcap’s London estate at the start of 2023. He continued to look after Barrio Familia and Disrepute, while The Adventure Bar Group and The Cocktail Club London bars were added to his remit. Prior to joining Nightcap, Robertson spent 13 years at Maxwell’s Restaurant Group, with the final four years as group operations director. Earlier this summer, shareholders of Nightcap backed the move for the business to go private. It shares now trade on the Asset Match platform. The Ordinary Shares of Nightcap were admitted to trading on Asset Match on 29 July at a price of 2.4p per share.

JW Lees acquires North Wales site from Whitbread: Manchester brewer and retailer JW Lees has acquired The Craigside Hotel in Little Orme in Llandudno, North Wales, from Whitbread for an undisclosed sum. William Lees-Jones, managing director of JW Lees, said: “We are delighted to be acquiring The Craigside Inn from Whitbread, and it will take our Inns & Hotels business up to 366 bedrooms under company management. We have a number of successful sites in the Llandudno area including The Groes Inn Conwy, Wales's oldest pub, and The Links Hotel and Station Hotel Llandudno, and we look forward to welcoming the team and guests at The Craigside to being part of the JW Lees family business. We will continue to run the hotel for the foreseeable future and have exciting plans to refurbish and reposition it early in the new year.” Last month, JW Lees reported a record year with revenues up 9% to £96.8m for the 12 months to 31 March 2024, and pre-tax profit up 104% to £7.1m. The company, which operates 47 managed pubs, inns and hotels, and 87 tenanted and leased pubs, said that pre-tax profit in the previous year was down by 56% to £3.5m owing to a number of reasons including the cost of energy, significantly reduced government support and increased levels of investment in the business. Christie & Co acted on the Craigside Hotel deal.

Zaap Thai to open new Durham site next month: Sukho Group, which operates the Sukhothai and Zaap Thai concepts, will open its seventh site under the latter concept next month, in Durham. The restaurant, which will open in The Riverwalk scheme, will be one of the brand’s biggest venues yet, with space for around 100-120 covers, plus a further 20 planned for dining al fresco on the terrace outside. Ban Kaewkraikhot, founder and executive chef at Zaap, said: "Durham is a fantastic city and we’re delighted to be making a new home here for Zaap. With its diverse population and thriving cultural scene, it is the perfect fit for our unique concept. We want to create a space where people can truly feel like they’ve been transported to Thailand, from the food to the atmosphere.” Sukho Group told Propel in June that Zaap Thai remains its top priority for expansion but believes there is potential for a future rollout of its new Gai Zaap format. The company opened a new 66-cover restaurant on its former Zaap's Thai supermarket site in Upper Parliament Street, in Nottingham, under the new chicken concept in July.

Doughnut concept Project D files for administration: Derbyshire doughnut producer and retailer Project D has appointed administrators to its manufacturing business. The Business Desk reports that the company has placed its Bugibba Independent business into administration just weeks after it agreed a company voluntary agreement (CVA) with its creditors over debts totalling £298,000. Despite the CVA, Project D stated its “core business was as strong as ever” and assured investors it was ready to “turn the corner” after experiencing three loss-making months in December, January, and February. Director at Project D Max Poynton said: “We can confirm that we have taken steps to enter administration today for one of our group’s manufacturing businesses, Bugibba Independent. This decision is part of a broader strategic plan. We have implemented several cost reduction measures over the past few months within our bakery and we are committed to protecting the interests of our creditors and working through this process responsibly. Bugibba Independent has faced significant challenges over the last 12 months, including a record increase in minimum wage, rising raw material costs and a recent spike in chocolate prices. In addition, our revenue has declined by 20% due to the ongoing cost of living crisis, making it increasingly difficult to operate. Regrettably, we have had to make a number of redundancies across both the bakery and office teams. We are working closely with those affected to support them in finding new employment opportunities.” In 2021, Derby City Council provided an undisclosed grant from its Ascend fund to help the company during the covid pandemic. In 2023, Project D raised £458,533 through crowdfunding to support its growth and expansion nationwide. The largest portion of the money owed by the firm was to HMRC, which was £120,574.

Pernod Ricard buys stake in Lewis Hamilton’s non-alcoholic spirit Almave: Pernod Ricard has bought a stake in Lewis Hamilton’s non-alcoholic tequila alternative, Almave. Seven-time Formula One world champion Hamilton co-founded the brand, alongside drinks incubator business Casa Lumbre and investment group Copper, last year. Pernod Ricard did not disclose the size of its investment in the brand. Hamilton said: “When I decided to embark on this project, it was important to me to find partners who could help me realise my vision without compromise. I am proud we were able to do that, not just in quality and taste, but also with real ingredients and time-honoured techniques. It’s exciting that Pernod Ricard has today become an official stakeholder in Almave, allowing us to unleash the potential of the next stage of our journey, and help take Almave to even more people around the world.”

Civerinos set for sixth site as it prepares to open at Scotland’s first indoor surf resort: Edinburgh pizza concept Civerinos is set for a sixth site as it prepares to open at Scotland’s first indoor surf resort. Owner Michele Civiera, who sold his car and rare sneaker collection to start the business in 2016, already operates four Civrinos in Edinburgh and one in Glasgow and will be among three restaurants opening this autumn at Lost Shore at Ratho, near Edinburgh. It comes after Civerinos last year said it was targeting UK expansion, with a “site in every student city and town”. Also opening at Lost Shore will be a third site for Glasgow Mexican restaurant Rafa’s. Founder Gregor Forrest launched the first Rafa’s in 2020 in Hidden Lane, Finnieston, having moved from Arizona to Glasgow as a child. Earlier this month, he doubled up with the launch of a new concept called Birria Shop – “dedicated to all things birria” – at 362 Cathcart Road in the city’s Southside. Also opening its third site there will be Five March – owned by Joanna Nethery and Peter Mackay – which has an original location in Glasgow’s Park Circus and a dining room within Phillie’s in the Shawlands. Andy Roger, chief executive of Lost Shore Surf Resort, said: “Lost Shore will become one of Scotland’s leading leisure destinations, and with our food and drink offering, our priority was to achieve the perfect balance of quality, diversity, and, most importantly, taste. With the anticipated influx of tourists, we are honoured to showcase the very best of Scotland’s food and drink scene to a domestic and international audience.”

PureGym reports ‘reliable, ongoing growth’ in second quarter: PureGym, Britain’s biggest health and fitness club operator, has reported “reliable, ongoing growth” in its second quarter boosted by further site openings. The company, which last week announced that Punch chief executive Clive Chesser would become its chief executive from November, saidrevenue in the three months to 30 June 2024, increased to £151m, up from £138m the previous year, while group adjusted Ebitda stood at £41m, up from £35.8m in the same period of 2023. The group opened nine new sites in the UK in the quarter, making 20 in the first half. A further 20-25 sites are expected to open in the second half. Average capex per new site was £1.2m. It said its average number of members exceeded two million during the quarter. PureGym said it had overall achieved a “solid and well controlled first half of the year, building on the momentum at the end of last year”. It said key steps were made to strengthen its business leadership and the board. Humphrey Cobbold is to transition to the role of chairman in November, with Chesser appointed as chief executive. At the same time, Rebecca Passmore (chief operating officer) is to take a seat on the group’s board alongside Cobbold, Chesser and Alex Wood (chief financial officer).

Cider subscription service goes into liquidation: Cider subscription service Crafty Nectar, which supplies cider from independent producers to bars and restaurants, has gone into liquidation. The company, founded by Ed Calvert and James Waddington in Somerset in 2015, raised £150,000 through Crowdcube in 2017 to expand its trade division, passing its initial £100,000 in just 24 hours. But Calvert has now returned to the crowdfunding platform to explain his decision to close the company. “Since the EGM on March 26, 2023, both James and I have been fully occupied with working full-time in other jobs as we’ve been unable to pay ourselves through Crafty Nectar,” he wrote on Crowdcube. “As detailed in our previous shareholder reports, Crafty Nectar has encountered significant cash flow issues and mounting debts due to the prolonged impacts of covid-19 and various uncontrollable market factors. During the EGM, we communicated our intention to explore selling off our assets to pay our creditors, which include several cider makers who might face financial strain without these payments. Our goal was to continue running the business part-time to keep Crafty Nectar going as a viable brand, but unfortunately, we were unable to achieve this and will have to close the business due to limited trade and unable to pay our existing outstanding debt. We are now proceeding with the company’s closure through liquidation and have engaged a liquidation practitioner to assist us. Once we receive their full legal advice, we will provide you with a clear and detailed update on the situation when everything is 100% completed. We regret that this isn’t the news you were hoping for, but please know that we have done our absolute best to prevent this outcome.”

Inflatable theme park operator opens in Bristol for sixth site and largest yet: Inflatable theme park operator Jumpin Fun has opened in Bristol for its sixth site and largest yet. Founded in Burgess Hill, West Sussex, in 2018 by Casey Ruse, the company also has locations in Salisbury, Derby, Rochester and Cheltenham. The 26,000 square-foot Jumpin Fun Bristol features slides, air drops, jumps and an array of obstacles. The company said: “We’re bringing something totally new and exciting to the Bristol area. Our brand-new site offers a massive 26,000 square feet of inflatable fun – making it our largest Jumpin Fun park yet! We have everything from giant slides and air drop jumps to challenging obstacle courses, creating the perfect day out for families, friends, and groups of all ages.”

Leicestershire McDonald’s franchisee narrows losses, confident of return to profitability in 2024: Leicestershire McDonald’s franchisee The Lee Collective narrowed its losses in the year to 31 December 2023 and said it is confident of returning to profitability in 2024. The Lee Collective was founded by Lorraine Lee in 2000 and now operates four restaurants across the region. She has been with the company for some four decades, since starting out with a part time job at her local restaurant in Walsall while studying for her A-levels. The Lee Collective narrowed its losses and increased its turnover. A pre-tax loss of £492,157 in 2022 was narrowed to £149,541. Its turnover grew from £19,094,553 to £20,387,979. Dividends of £215,000 were paid (2022: £250,000). The balance sheet showed net assets of £260,976, a decrease of £290,898 on 2022. Food and drink sales increased by 7.57%, from £18.64m to £20.06m, while gross profit as a percentage of sales increased by 1.05%. “The financial performance of the company improved during 2023,” Lee said. “This was aided by government support packages such as the 75% business rates relief in the retail and hospitality industry and 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. The director is confident that the company will become profitable again in 2024.”

Kent inclusive sports club plans third site after receiving £178,000 loan: An inclusive sports club in Kent is planning a third site after receiving a £178,000 loan. Inclusive Sport has operated for six years in two Kent locations, offering training to hundreds of children and adults with disabilities and special needs. The loan, from NatWest, will go towards a acquiring a new headquarters, expand its workforce and train up local coaches. Plans for the new site include a new and fully equipped inclusive gym and fitness centre, and the delivery of more coaching courses and Paralympics-themed programmes. Thomas Tsangarides, director of Inclusive Sport, said: “We’ve always set out to create a positive impact in society and provide activities for all abilities, so we’re happy that our partnership with NatWest will allow us to take our efforts to the next stage and reach even more people.”

HOP to open second Manchester site next week: Vietnamese street food concept HOP is to double its presence in Manchester with an opening in the city’s The Arndale scheme, next week (Friday, 6 September). The Paul Hopper-founded business made its debut in Manchester last year after opening a kiosk in The Orient food court at The Trafford Centre. Earlier this year, HOP agreed a 15-year lease on the 3,777 square-foot former Samsung unit in Market Street. Spread over two floors and positioned opposite the city’s Royal Exchange, the site is the brand’s biggest opening outside London to date. HOP, which also operates sites in London’s Moorgate and St Paul’s, debuted its new all-day, seven-day a week format last summer in Bond Street, in the West One shopping centre. It is also understood to be in talks to open a site in King’s Cross.

Cider specialist Felix Nash opens first bottle shop and tasting space: Cider specialist Felix Nash has opened his first bottle shop and tasting space, in London Fields. Nash has opened The Fine Cider Company Shop at 399 Mentmore Terrace, a decade after founding The Fine Cider Company. He also previously helped found The London Cider House at Borough Market with Mary Topp, Ted Dwane and Tom Oliver. “Felix’s shop opens the merchant's doors to the public, offering up the opportunity to taste and buy the best bottles that such restaurants stock,” the company said. “It has the casual convivial nature of drinking cider with the makers themselves, drawing inspiration from his visits to the orchards, with long lunches spent amongst the apple trees. The shop will serve as an educational hub, paying homage to cider’s heritage and versatility while celebrating its global renaissance and the new wave of contemporary cider makers.”

Sheffield beer shop and tasting room moves to new home following £10,000 fundraise: Sheffield beer shop and tasting room Hop Hideout has moved to a new home following a £10,000 fundraise. It has moved to a new space at the grade II-listed Leah’s Yard, in the heart of the city centre's regeneration project. The building dates to the 1800s and was previously used as a workshop in the city's cutlery trade. The move has enabled Hop Hideout to host more bespoke events such as wine tastings and cider producer showcases, as well as cater for private bookings and functions. Founded in 2013, Hop Hideout started as a pop-up in Abbeydale Road before moving to a café space next door in 2015, and then to a city centre food hall space in 2019. Owner Jules Gray said: “We’re excited to move to Leah’s Yard social hub at the heart of Sheffield, showcasing the very best in local independent art, retail, food and drink. We’re so grateful to all of our supporters who have shown that the beer scene is alive and well in Sheffield.”

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