Tasty confirms plans to raise £9.25m, David Page to become chair, plans to undertake four to six acquisitions: Tasty, the listed operator of the Wildwood and Dim T brands, has confirmed the appointments of David Page as chairman, launched a £9.25m fundraise and set out a new growth strategy. Propel reported earlier this week that industry veteran Page, the former chairman of Franco Manca-owner Fulham Shore and ex-chief executive of PizzaExpress, was in talks to raise circa £10m in a deal that would see him take the helm at Tasty. The deal will see the company renamed Bow Street Group on the London Stock Exchange and Tasty acquire a cash shell owned by Page and associates as part of the deal. The company said in a statement this afternoon (Friday, 1 August): “Tasty, the owner and operator of restaurants in the casual dining sector, is pleased to announce a proposed fundraising to raise £9.25 million (before expenses) via a conditional placing of and subscription for new ordinary shares at an issue price of 0.5p per new ordinary share. The placing, which is being conducted by way of an accelerated bookbuild, will commence immediately following this announcement and is expected to close later today. The company is also undertaking a retail offer to the company’s existing shareholders and new retail shareholders, and a separate announcement will be made shortly by the company regarding the retail offer and its terms. Connected with the fundraising, the company also announces that it has conditionally agreed to acquire the entire issued share capital of Page’s The Ventnor Bay Company for a consideration of approximately £200,000, to be satisfied by the issue and allotment of 40,000,000 consideration shares at the issue price.” The business said it is undertaking the fundraising and the acquisition, which together with the proposed new board appointments, will see a revised growth strategy, which the “enlarged board believes will provide the group with opportunities to increase sales and increase shareholder value through both organic and inorganic growth opportunities”. The net proceeds of the fundraising are intended to be used by the company to invest in and improve the group’s existing restaurants; invest in the company’s technology and operations; acquisition of other restaurant brands; and provide working capital support to deliver the company's revised growth strategy. There will also be a full review of existing sites, including scope for seven full refurbishments (approximately £250,000 of capex per site with an approximate four-year payback); a review of the status of five existing short leases within the group’s estate; identifying which of these, and any other sites, should be marked for disposal, subject to negotiations with landlords, or remodelling as newly acquired businesses; and the potential rebranding of existing group brands. The company said: “In addition, the enlarged board will seek to undertake four to six acquisitions over the first three years following admission, with an aim to grow the enlarged group’s brands to 50-plus sites. The enlarged board believes that there are a number of existing acquisition opportunities in the casual dining and quick service restaurant sector, where there are high quality businesses, performing well, that are struggling to raise finance. The enlarged board believes that small brands joining the enlarged group would benefit from the structural support available. The key attributes for initial acquisition targets are as follows: successful brands with two to approximately 15 sites; value for money offering with an average spend per head of £10-£30; scalable UK footprint; full or counter/hybrid service model; existing entrepreneurial management team; possible opportunity to convert certain existing group sites into acquired brands; and realisable synergies.” Jonny Plant, chief executive of the company, said: “We are highly confident that the strengthened executive team, together with a cash injection, will be transformative to the business and all its stakeholders. In David and Nick (Wong, who will become chief financial officer), we are proposing to bring on board two highly experienced and successful restaurant operators, with strong track records of driving growth and shareholder value through both organic and inorganic opportunities. Whilst over recent years Tasty has not been immune to the pressures impacting across the casual dining sector, the fundraising will enable us to invest in our estate, improve our operations and technology and identify opportunities for acquisitions. With a proposed new name, new plan and new future, this promises to be the start of an exciting new chapter for the group.” Page, proposed executive chairman of the company, said: “We have a clear plan for the group which involves enhancing and refurbishing the existing estate, investing in the Wildwood and dim t brands, upgrading technology, and delivering acquisitions of high-quality and scalable restaurant businesses. With many successful smaller restaurant businesses – typically with two to approximately 15 sites – finding it difficult to raise financing, the Bow Street Group will be a highly attractive platform for exciting brands, offering structural benefits of scale, operational synergies, and attractive incentivisation plans for entrepreneurial management teams. We aspire to deliver four to six acquisitions over the first three years with a focus on high-quality, great value for money offerings with the potential to scale across the UK. Along with Nick, I am excited to join the group and deliver our growth strategy to generate value for the group's shareholders.” Tasty features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 1,125 companies. Tasty’s turnover of £36,615,000 for the year ending 29 December 2024 is the 336th highest in the database. 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.

Buzzworks hires former Hostmore, Hotel du Vin and Malmaison CEO as it looks to expand into accommodation sector: Scottish independent restaurant and bar operator Buzzworks Holdings has hired former Hostmore, Hotel du Vin and Malmaison chief executive Robert Cook as its new non-executive chairman as it looks to expand into the accommodation sector. Propel revealed in June that the 22-strong business is set to open its first accommodation venue this year, alongside plans to expand into England and become a £100m-plus company within five years. Cook brings with him more than 35 years of experience in the premium hotel and his “expertise in rooms, strategy and operational delivery will help support Buzzworks’ planned move into the accommodation space”. He spent eight years as Malmaison and Hotel du Vin chief executive, from 2004 to 2011, and performed the same role at Village Hotels & Devere hotels & Resorts between 2012 and 2014. Cook – who also previously headed up Virgin Active – stepped down as chief executive of Hostmore – the then parent company of Fridays, 63rd+1st and Fridays and Go – at the start of 2023 after three years in the role. Since then, he has sat on several advisory boards and performed a number of consultancy and non-executive director roles. Cook said: “I’ve admired Buzzworks’ growth and ethos for many years. It’s a business rooted in community, quality and ambition and I’m proud to be joining at such an exciting stage. There’s huge potential in their next chapter – particularly with the introduction of rooms – and I look forward to helping shape that journey.” Kenny Blair, Buzzwork’s co-founder and managing director, added: “Robert brings a depth of knowledge in accommodation that will be invaluable as we push forward with our growth strategy. His track record speaks for itself, and we’re pleased to have someone of his calibre join the board as we broaden our horizons and build on the strong foundations already in place.” Buzzworks, which operates concepts including Scotts, Lido, Vic’s & The Vine and Herringbone, also in June completed a family management buyout, with Kenny Blair taking control of the family business while Colin and Alison Blair took up advisory roles.