Hakkasan sees UK revenue climb to $87m and losses widen to $6.9m in first year under new ownership: Hakkasan saw its revenue climb to $87m and losses widen to $6.9m in its first year under new ownership. The global restaurant group, originally founded in London in 2001, was sold, together with other intermediary holding companies under parent group Tao Group, to Mohari Hospitality in May 2023, in a deal which valued the whole business at $550m. In its accounts for the 18 months ended 31 December 2023, the group said it has changed its reporting period from a June year end to that of December, to align it with the new parent company. It said the comparative period is an 18-month period from a December year end to that of June, and the current period includes two December months, which are the group’s busiest revenue periods. Therefore, it said, the comparative amounts presented in the financial statements are not entirely comparable. The group’s UK revenue grew from $75,812,000 (£58,535,078) in 2022 to $87,248,000 (£67,359,627). Its pre-tax losses widened from $1,854,000 (£1,431,380) to $6,865,000 (£5,300,121) as administration expenses rose by almost $12m and costs were up by almost $4m. A loss on disposal of owned property and equipment of $1,094,000 was reported (2022: $196,000), along with a foreign exchange loss of $1,015,000 (2022: gain of $1,110,000). Director Derek Silberstein said: “Overall revenue for the 18-month period ended 31 December 2023 compared favourably to revenue for the 18-month period ended 30 June 2022. Restaurant revenue for UK owned operations increased by $7.2m (10%) from $71.8m to $79.0m due to factors such as pent-up demand post lockdown, increased focus on staycations, shift in consumer spending habits and the return of international tourism. Management fee revenue has more than doubled in the period by $4.2m (107%) from $4m to $8.2m. Pre-tax loss for the financial period increased by $5m (270%) from $1.9m in 2022 to $6.9m in 2023 due to the reduction of government support in hospitality, increased expenses following Brexit and uplift in living wage.” Silberstein said while the functional currency for the non-US operations is pound sterling, the presentational currency for the group is dollars as Tao is based in the US. “In the prior period until 27 April 2021, the group's core operations were based in London and Las Vegas,” he said. “Following the disposal of Hakkasan USA in April 2021, the group’s core operations are based in London. The results of the US operations for the period up to 27 April 2021 are being shown in the comparative consolidated statement of comprehensive income as a discontinued operation in accordance with the requirements of IFRS 5. The consolidated statement of comprehensive income represents results from continuing operations only in the current and prior period.” Further analysis shows the discontinued US operations contributed $3,443,000 of turnover in 2022 (2023: nil) and a pre-tax loss of $15,542,000 (2023: nil). Post year-end, Hakkasan, which operates 14 sites across the globe, added Muscat to the group’s portfolio in October, located in the St Regis Al Mouj Muscat. No dividends were paid (2022: nil). Hakkasan features in the Propel Turnover & Profits Blue Book. Its UK turnover for the 18 months ended 31 December 2023 was $87,248,000 (£67,359,627), up from $75,812,000 (£58,535,078) in 2022. Hakkasan’s turnover for the 18 months ending 31 December 2023 is the 163rd highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. 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.

Access Group acquires US digital guest engagement provider Paytronix: Business management software provider, Access Group, has acquired US-based Paytronix, a provider in guest engagement for restaurants and convenience stores. Access group said the investment represents one of its most significant acquisitions in its 30-plus-year history and is a major step forward as it continues to focus on its product offering in the United States. Access Group said it hopes to add further support to the Paytronix team, helping to accelerate its growth and expand the footprint. Currently, the Paytronix platform includes numerous capabilities for online ordering, loyalty, omnichannel messaging, branded mobile apps, gift cards, third-party marketplace management, payments and stored value. Leveraging data from transactions and personalised customer accounts, Paytronix creates targeted marketing campaigns. Paytronix will retain its name and plans to integrate its platform with a selection of Access products. Paytronix was purchased by Boston-based Great Hill Partners in 2017, and its customers include Panera, Qdoba, Nando’s and Five Guys. Paytronix chief executive Jeff Hindman said: “The acquisition by The Access Group is the beginning of another stage in our growth, and I’m excited to say that from here we’re only going to build upon the service and capabilities that our clients know us for.” Access Hospitality’s managing director, Champa Magesh, said: “By partnering with Paytronix, together we can achieve a broader footprint in the Americas and further strengthen our wider strategy to offer a comprehensive suite of unified technologies, that enhance the customer experience across hospitality and convenience store businesses.”