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Bagelstein aiming to make UK entry next year, in talks with franchisee about possible Midlands debut: French bagel brand Bagelstein has told Propel it is aiming to make its UK entry next year and is in talks with a franchisee about a possible Midlands debut. Founded in 2011 by Thierry Veil and Gilles Abecassis, Bagelstein has since grown to 92 restaurants in six countries – France, Belgium, Italy, Switzerland, Mexico and Denmark – and recently signed a deal to launch in India. It was among the exhibitors at the International Franchise Show at ExCel London earlier this year and is confident of having a presence in the UK at some point in 2025. “The UK is a very natural market for casual food, so we don’t want do it under bad conditions,” Veil told Propel. “We don’t go into other countries with our own stores, and we don’t want to do it with a single franchisee that opens one restaurant. We need to find a partner with ambition who can be a master franchisee for a certain area, not necessarily the whole of the UK, but not just for one spot. We are in touch with a partner for the Midlands – Birmingham up to Manchester – and that would be quite interesting for us as we can finalise the offer before going into a city like London or into Scotland or Ireland. We will rely on partners in the UK and are still checking out who we will work with, and this company from the Midlands is the most advanced talks we’ve had. I think we could open 200 sites across the whole of the UK. India will be next as it is already signed, but the UK and Germany are our next targets. We are hoping to open our first UK site next year. It won’t be in the first quarter as India is taking a lot of our focus, but the UK and/or Germany should be ready to roll out.” Veil said that when Bagelstein first launched in France, “nobody knew what a bagel was, but we created a market for them”. He added: “We make bagels but in a French way. When you go to the US or Canada, which are the two biggest consumer markets, they usually eat them with cream cheese. We do them with fried chicken, bacon, onion, melted cheese and so on. We do it in a different way – more of a competitor to the burger brands.”

Industry News:

Next Who’s Who of UK Hospitality to be released tomorrow featuring 873 companies: The next Who’s Who of UK Hospitality will be released to Premium Club members tomorrow (Friday, 25 October), at midday. Another 20 companies have been added to the database, which now features 873 companies. This month’s edition will also include 101 updated entries and more than 236,000 words of content. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium Club members also receive access to five other databases: the Multi-Site Database, the New Openings Database, the Turnover & Profits Blue Book, the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including 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.

Company News:

JD Wetherspoon acquires Revolution site in Bath: JD Wetherspoon is to add a site in Bath to its 2025 opening pipeline. Propel understands that Wetherspoon has secured the Revolution site in the city’s George Street, which is set to close on Saturday, 2 November, for an opening next year. Last week, Propel revealed Wetherspoon has secured the grade II-listed former ticket office at 472 Fulham Road, which forms part of the Fulham Broadway shopping centre, signing a new 30-year lease for the former Market Halls site, for an opening early next year. The new pub will be named “Walham Green”, which was the original name for Fulham Broadway underground station. Earlier this month, Wetherspoon chairman Sir Tim Martin told Propel he is aiming for the company to double its sales to £4bn in the next ten years after passing the £2bn mark for the first time. Sir Tim said he believes the business can help itself hit that target by franchising the brand – including on the UK high street and abroad – and believes a Wetherspoon franchise could double the revenue of an existing independent operator. James Grimes, of AG&G, acted on the Bath deal.

Knoops CEO – we are a global brand building out, not a national brand looking for expansion: William Gordon-Harris, chief executive of luxury hot chocolate shop brand Knoops, has said the make-up of those who engaged in its recent crowdfunding campaign has given the business “huge comfort as we start to focus on reminding everyone that we are a global brand building out – not a national brand looking for expansion”. The company closed its crowdfunding campaign early at the end of last month after raising just over £2m, double its initial target. A total of 63% of Knoops’ investors in the fundraise were retail investors and 37% were female, nearly double the industry average, while the majority were aged 25-34, tapping into a younger demographic. Gordon-Harris said: “Raising via crowdfunding has not historically been seen as a positive story by some traditional investors. I think the statistics confirm my views that this negative perception of crowdfunding is dated and biased. The female and younger skew for Knoops investors mirrors our brand users and bodes so well for our future growth and support. Engaged stakeholders are key but also give us huge comfort as we now start to focus on reminding everyone that we are a global brand building out – not a national brand looking for expansion. We have our wholly-owned UK subsidiary where we have made so many learnings – but it is only part of Knoops. The architecture of Knoops from the beginning was designed to scale in parallel across various markets, and 2025 will see this coming into sharp focus. This will create a step change in perception of the true value of Knoops as a multi-channel brand. I think ten years ago, brands like us would have spent more time singularly focused on the UK for longer before expanding abroad, but the UK market does feel more isolated than it did a decade ago and the speed of globalisation of brands has moved on. The interesting question for the current government is how many brands move their international headquarters from the UK if they do not feel the support and energy that has been so prevalent in the last 20 years.” The company plans to use the proceeds to expand its footprint both in the UK as well as internationally, with its first overseas site expected to open in City Centre Mirdif, Dubai, later this month, working with its regional partners, NDS Group. In September, Knoops told Propel it plans to open between ten and 20 stores in the UK next year and is engaging in franchise conversations in territories like Saudi Arabia, Kuwait, Egypt and Turkey.

Iberica looking to extend leases of its UK restaurants but not further expand here and is still exploring international opportunities: Spanish restaurant group Iberica has said it is looking to extend the leases of its UK restaurants but not undergo any further expansion here and is still exploring international opportunities. Iberica currently operates four London restaurants – in Canary Wharf, Farringdon, Marylebone and Victoria – plus an outpost in Leeds. Last year, managing director Marcos Fernandez Pardo told Propel he was preparing a business plan to secure the funding to allow the business to open 25 restaurants in Spain over a five-year period. “The company does not plan to expand further in the UK but hopes to continue to grow sales from their existing five restaurants and are currently looking to extend leases in all property locations,” the company said in its accounts for the year to 30 September 2023. “Iberica is also at the early stages of looking at a number of international licence opportunities and in 2024 went live selling some of its deli ingredients through Sainsbury’s supermarkets. 2023 was a challenging year, but the board is confident Iberica can going forward strengthen both sales volumes and profitability through a combination of increased marketing, cost control initiatives and expansion both through diversification and international expansion.” It comes as the business reported a slight increase in turnover for the year, up from £9,042,000 in 2022 to £9,075,000. Restaurant Ebitda was down from £1,376,000 to £1,084,000, with Ebitda before pre-opening and exceptional costs down from £309,000 to a loss of £93,000, and overall Ebitda down from £399,000 to a loss of £72,000. The company’s pre-tax loss widened from £309,304 to £826,985, and post year-end, in May 2024, it refinanced its loan facilities. Its bank loans at the year-end had stood at £4,230,166 (2022: £4,589,478) and had been due for repayment in April 2025.

Team behind Afrikana opens second UK site for French taco concept and first regional location: The team behind African restaurant Afrikana has opened the second UK site for French taco concept Tacosmash and its first regional location. Propel revealed last year that Afrikana managing director Omair Ali, who is also the managing director of City Restaurants Group (CRG), was looking to bring Tacosmash to London. Tacosmash launched here in April at 568 Mile End Road and included an arcade space alongside smash burgers, French tacos and a range of sides and 'shakes. Store number two has now opened at 363 Ladypool Road in Birmingham, which also features arcade machines as well as self-serve kiosks. Meanwhile, CRG has said it is set to add at least two more sites to its 16-strong Afrikana estate this winter – in Walsall and in London’s Holloway.

Brian Trollip promoted to Dishoom CEO: Indian restaurant group Dishoom has promoted Brian Trollip to chief executive. Trollip has been with the group since 2010 and has been an integral part of the company’s team of senior “Babus”, led by co-founders Shamil and Kavi Thakrar. Trollip steps into the new role after leading the team as managing director since October 2020. Prior to this, he held the position of chief operations-walla. The company said that in his new role, he will continue to support the founders while overseeing all aspects of the business as it continues to grow and evolve, plus a team of more than 2,000 “Dishoom-Wallas”. Trollip’s appointment comes as the 13-strong company gears up to open a third site under all-day bar-café concept Permit Room. It will open the new site on Friday (25 October) in the city’s New Inn Hall Street. Dishoom also operates Permit Room sites in Brighton and Cambridge. The company, which recently launched the biggest shake-up of its menu since it opened its first site in Covent Garden 14 years ago, saw its revenue increase 23% last year to £117m. The group said it had continued to “perform well” since the year-end, delivering ongoing growth at both a revenue and underlying profit level.

South east London and Kent McDonald’s franchisee reports profit boost as turnover hits record £39.2m: McDonald’s franchisee Galm’s, which operates 13 sites across south east London and Kent, has reported turnover increased 41% to a record £39,192,612 for the year ending 31 December 2023 compared with £27,713,342 the previous year. Pre-tax profit was up to £679,372 from £187,200 the year before. Gross profit increased to 65.3% from 64.8% the previous year. In his report accompanying the accounts, franchisee Greg Abbott stated: “Sales growth was driven by the opening four new stores during the previous year, alongside growth in revenue from digital channels. The business continues to reinvest in its existing stores. During the year, the company also completed a major refurbishment at one of these sites.” Dividends of £169,548 were paid (2022: £118,161). Abbott has been a McDonald’s franchisee since 2002 and employs around 1,100 staff.

Freehold investment of The Bedford in Balham sold for £6.05m: The freehold investment of The Bedford, Balham, which is let to Three Cheers Pub Co, has been acquired by a private investor for £6.05m. The purchase price reflects a net initial yield of 5.26%. The property includes a public house, boutique hotel and events space comprising more than 21,000 square feet. The venue’s Club Room has been home to the likes of Ed Sheeran, Sam Smith, Eddie Izzard and Michael McIntyre. The Bedford is the ninth pub in the Three Cheers Pub Co collection that was started by school friends Tom Peake, Mark Reynolds and Nick Fox in 2003 when they opened their first pub, The Abbeville in Clapham. AG&G acted on behalf of the purchaser with Portland Leisure Advisers acting for the vendor.

Thai Express to open three new sites in 2025 as it bids to become ‘UK’s number one fast casual Thai brand’: Thai street food restaurant Thai Express is set to open three new sites in 2025 as it bids to become the “UK’s number one fast casual Thai brand”. The company was founded more than two decades ago in Canada and has grown to more than 300 locations around the world. It was brought to the UK by Uzma and Sachin Pattani and made its debut here in 2012, since when it has grown to eight locations. “With big expansion plan in 2025 (three new sites) we are aiming to become the number one fast casual Thai brand in the UK in next two/three years’ timeframe,” said the brand’s senior operations and project manager, Kaizer Rehman. Thai Express recently introduced self-service kiosks into its Nottingham branch, which Rehman said has been a roaring success. “All our future projects will have this feature, as kiosks are generating 72% of our gross sales in total (Lakeside and Nottingham) and increased like-for-like revenue and average transaction value growth significantly since 2023,” he added. The Nottingham venue, Thai Express’s eighth in the UK, opened in August, in the city’s Victoria Centre. Thai Express is sharing a 1,800 square-foot space with Japanese concept Japami – its UK debut – that has also been brought here by the Pattanis.

Middle Eastern restaurant group opens debut UK site: Middle Eastern restaurant group Claro has opened its debut UK site. Claro London has opened in the former Villandry unit at 12 Waterloo Place for the group’s first flagship restaurant outside the Middle East, offering contemporary Mediterranean food with Middle Eastern influences. Led by chef Shadi Issawy, the seasonal menu focuses on dishes designed to be shared. It is broken down across three sections – fish, meat and vegetable – with highlights including yellowtail sashimi with freekeh tabbouleh, winter squash steak with mustard leaves, octopus carpaccio with red prune salsa, smoked pink trout with potato salad and lamb platter with picked vegetables and pita bread. There is also a selection of premium wine, Champagne and cocktails. The restaurant features an open kitchen, bar seating and dining tables – with outdoor seating set to follow next summer – and two second-floor private rooms, for 12 and 60 guests.

McDonald’s UK extends Uber Direct partnership: McDonald’s UK & Ireland has extended its contract with Uber Direct as the fast-food brand looks to increase the number of customers using its mobile app. Uber Direct is a white label delivery platform that allows retailers to offer on-demand delivery from within their own website or app. The technology enables McDonald’s customers to track deliveries from their local restaurant to their door. It also provides 24/7 customer service. Simon Duffy, delivery director, McDonald’s UK & Ireland, said: “McDonald’s is building a digital ecosystem that empowers us to create more personalised experiences and connect with our customers throughout their McDonald’s journey like never before.” Caroline Varga, head of Uber Direct UK & Ireland, added: “The growing popularity of McDelivery has been fantastic to witness first-hand. McDonald’s and Uber Direct are both ambitious companies that want to build on that success. We are now focused on taking our partnership to the next stage as we look to help McDonald’s achieve its global targets.”

Swedish bakery brand Fabrique to open seventh London site: Swedish bakery brand Fabrique is opening a seventh London site. The outlet, in Soho’s Denman Street, builds on the company’s recent crowning as purveyor to the Royal Court of Sweden. The site will also add to existing cafes in Stockholm and New York as well as London. Founded by David and Charlotta Zetterström in Stockholm in 2008, Fabrique is known for handmade artisanal baked goods prepared in a stone oven. Charlotta Zetterström said: “Our new London shop is located on a quiet street, with both Piccadilly and Westminster just a few steps away.” Fabrique was one of two Swedish companies appointed as a new purveyor to the Royal Court of Sweden this year, with the warrant only granted to companies that supply goods or services to the country’s royal family. Charlotta Zetterström said: “Purveyor to the Royal Court of Sweden is an unusual honour. It’s a confirmation our commitment to quality and craftsmanship is appreciated, and it is with joy and pride that we now display the diploma in our London shops.”

Gulliver’s sees growth levels drop but accommodation numbers up, ‘unwilling’ to pass on cost increases: Family-run, four-strong theme park operator Gulliver’s said its growth levels dropped in the year to 31 December 2023 but its accommodation numbers were up, and that it was “unwilling” to pass on cost increases to its guests. The business – which has sites in Milton Keynes, Rotherham, Warrington and Matlock Bath – saw turnover increase from £8,128,845 to £8,606,638 – compared with sales growth of around £1m the previous year. Pre-tax profit dropped from £1,785,922 in 2022 to £1,146,441 as costs rose by more than £1m. “The strength of the UK holiday market in 2022, together with positive weather in the holiday periods, saw a significant growth in our turnover [that year],” director Julie Dalton said. “As anticipated, the growth levels dropped slightly in 2023, but we have still seen resident numbers increase in all of our accommodation facilities, at each of our theme parks, which has vindicated our decision to invest in these facilities throughout the covid pandemic. 2023 saw a tough period in the UK economy. The cost of living has increased significantly, in particular on energy costs and foods costs. An increase in both the national minimum wage and national living wage has also put pressure on our labour costs. We are both unwilling and unable to pass these costs on to our consumers. The cost-of-living increases have obviously resulted in an increase of costs to us, but has also reduced the spending power of our customers. A fall in profit had been expected in 2023, based on the facts stated above, so we consider the financial year to be a success. The company has a strong balance sheet position at the year end, particularly in terms of its cash position. Our policy of retaining earnings to invest in the future enables us to grow while maintaining a healthy cash balance.” No dividends were paid (2022: £264,000). A new report has been produced by Propel on the fast-growing experiential leisure sector. 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 to Premium Club members. Companies can now have an unlimited number of people receive access to Propel Premium 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.

Nell’s Pizza to open fourth site next month: New York-style pizza business Nell’s will open its fourth site, in Altrincham. Nell’s will join Lane7, Starbucks and Yum Cha in opening in the former House of Fraser site in the Greater Manchester town. Co-founders Jonny and Charlotte Heyes operate Nell’s sites within two of their venues in Manchester’s Northern Quarter, Common and The Beagle, and also operate a stand-alone Nell’s at the Kampus neighbourhood, near Manchester Piccadilly. Earlier this year, they announced plans for a further Nell’s location, in the ex-Croma site in Manchester’s Clarence Street. The Altrincham site – which opens on Friday, 22 November – will offer the concept’s signature 22-inch pizza, cocktails and ice cream sandwiches. As well as Common, Beagle and their Nell’s portfolio, the Heyes’ are also behind Port Street Beer House in Port Street and previously operated The Pilcrow in Hanover Street, which is now Sadler’s Cat.

Nottinghamshire family-owned Sicilian restaurant concept to begin expansion: Nottinghamshire family-owned Sicilian restaurant concept Compà is to start expanding. Having made its debut in Wollaton Road in Beeston two years ago, a second site is set to open in Nottingham city centre. Angela Aiello, who runs the business with husband Massimo Bellavista and son Andrea Ledda, is gearing up to open on the corner of Heathcoat Street and High Cross Street in Hockley. The same menu will be served at the new restaurant, which will open at the end of November. Although slightly smaller than its 36-cover venue in Beeston, it will have a “similar cosy and colourful feel”. Aiello told Nottinghamshire Live: “We always wanted to open in the city centre but first we needed to affirm this one. We monitored the hours between 9am and 9pm to see what time people came. We found that opening from midday to 3pm and 6pm-9pm was the best solution.”

New steakhouse set to open in Hull: A new steakhouse offering rooftop cocktails alongside local Yorkshire produce “brought to life using Mediterranean flavours” is set to open in Hull. The 200-cover One Steakhouse & Lounge will open next month at 1 Witham, in a space that has stood empty for nearly a decade. Guests will be able to choose from starters such as king scallops and belly pork, goat’s cheese with roast peppers and a balsamic reduction, and shell-on tiger prawns with garlic, chilli and herb butter. The focus of the menu will be a selection of premium, 32-day dry-aged steaks including sharing cuts like the tomahawk and porterhouse, along with personal steaks from the ribeye to T-bone, fillet and more. These will be paired with a menu of artisanal cocktails and wine. Co-owner Edison Motina said: “We decided early on to only serve locally sourced Yorkshire meat, which is something that is incredibly important to us. Our main aim has always been to offer the finest, freshest produce while supporting and celebrating our local farmers. I’m really proud of the menu our chefs put together.” Launching on Saturday, 2 November, the restaurant and bar will be open daily.

Coffee champion to launch new venture: Two-time UK Coffee in Good Spirits champion, David Jameson, is to open his first coffee shop venue, Danelaw Coffee, in Holmfirth, West Yorkshire. Sharing branding with his award-winning roasting business of the same name, Danelaw Coffee was awarded Great Taste Producer status in July 2024 after winning Great Taste Awards in each of the previous three years. The shop in Huddersfield Road – which opens on Tuesday (29 October) – will focus on grab and go coffee, tea and hot chocolate and have a light food offering of cakes and bakes, with plans to introduce locally sourced savouries, sandwiches and sausage rolls in the coming weeks. A custom espresso blend has been created especially for the venture. Titled Longhouse, the blend of Latin American coffee has been roasted to create the “perfect balance between a satisfying sweet espresso and a bold intense base for milky drinks”. Longhouse will be served alongside a two-star Great Taste Award winning decaf, Nott Mjólka, by Danelaw’s decaf-focused sister brand, Nott Coffee.

Trio of Manchester operators join forces to launch new concept: A trio of Manchester operators are joining forces to launch a new concept called The Trading Route, in the city's St John’s development. The Northern Quarter’s Trof is set to collaborate with Manchester Union Brewery and Monton’s Wandering Palate on the new venture, which will be located in Good Yards Street. The Trading Route, which is expected to open next month, will serve a mix of cold beer, hot chicken and a curated selection of upscale pantry items from Wandering Palate. Matt Nellany, general manager of Trof, told the Manchester Evening News: “We've focused on bringing everything that people love about Trof to an exciting space in a new neighbourhood.” Will Evans, co-founder of Wandering Palate, said: “It’s brilliant to be bringing our wine, cheese and deli favourites to a new audience in the city centre.” The Trading Route will double as a lager house for the Manchester Union Brewery. Founder Jamie Scahill added: “The Trading Route is an unofficial taproom for us, and it feels like this has been a long time coming.”

Gurkha awarded bravery medal for single-handedly fighting off Taliban attack gets green light to open nightclub in Cardiff: A Gurkha awarded Britain’s second highest bravery medal for single-handedly fighting off an attack by at least a dozen Taliban fighters has received the green light to open a nightclub in Cardiff. Dipprasad Pun, who is originally from Nepal, was awarded the Conspicuous Gallantry Cross in 2011 following the incident in Afghanistan’s Helmland Province the previous year. He is now behind a plan to turn a former bridal shop in Cardiff, which traded for more than 50 years, into a nightclub called Moonlight Club & Bar. The Allison Jayne Unit in The Friary in Cathays closed in November last year. Pun had sought planning permission to change the use from retail to a nightclub, including the installation of a stage and the construction of a bar and kitchen. It is also proposed to create an outside seating area for customers. Cardiff Council has granted planning permission under delegated powers, reports Insider Media. The building is currently vacant, with the applicant securing a 15-year lease agreement with the landlord for the property. The applicant said the development will “bring economic benefits to the local area through job creation and increased footfall”.

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