Tasty CEO – ‘recapitalisation of the company and bringing on board new investors is transformational’: Jonny Plant, chief executive of Wildwood and Dim T operator Tasty, has told Propel the recapitalisation of the company and bringing on board new investors in the shape of David Page and Nick Wong is “transformational”. Tasty confirmed on Friday (1 August) the appointment of Page as chairman and Wong as chief financial officer, alongside launching a £9.25m fundraise and setting out a new growth strategy. This includes aiming for four to six acquisitions over the first three years, with an aim to grow the enlarged group’s brands to 50-plus sites, but also giving the existing Wildwood and Dim T estate a facelift. Plant said: “The recapitalisation of the company and bringing on board David and Nick is transformational for this company in terms of the energy and experience they can bring. Wildwood and Dim T have been underinvested in, so a small bit of investment in any of the units is going to go a long way – not only in terms of upgrading the morale within the units but also having an impact on the customer experience, and I think once we start rolling out our refurbishment plans, that will have its own momentum. One of the first questions Nick and David asked me was what do the two brands represent, and it’s clear we’ve covered too many bases and not had enough focus on what the stand-out product is and what do people keep returning for. I think we need to do a bit of work on that, simplify the menus and look with a focus at both brands, and then look at what the potential for expansion is. But half the estate is trading quite well, so that gives us confidence that there’s something to work with.” In terms of how many brands he sees eventually sitting in the Tasty portfolio, Plant said: “It depends on the acquisitions, and David and Nick have a pipeline of acquisitions, so I think the scale of those acquisitions depends on the brands they buy. They’ve looked at brands with 20 sites and with three or four, but I think the optimum in the early days would be brands that have three or four restaurants that need that extra help we can offer them. The other element to it is the recapitalisation of Tasty as Bow Street gives us buying power, and we have and also a credit rating that we’ve been lacking, so it opens up a competitive tendering process that we can offer to other brands in terms of buying power and leverage. We’re looking for value propositions across any cuisine and in any market, from quick service restaurants to casual dining. The question is what is actually coming through a difficult market at the moment and where are the substantial opportunities?” In terms of whether he anticipates any closures amongst the group’s current estate, Plant added: “Too early to say. Following our restructuring, we cut about a third of our estate, which was upwards of 22-23 units, so all of the restaurants left have got value. The investment in those units will have a massive impact, given that it’s been five years-plus that we invested in them. It could be that some of the brands we’re looking at are suitable for some of the sites in our portfolio.” He added: “If you’re offering seed value in the marketplace, I think there’s demand in a crowded marketplace. I think we’ve got the operational scale that gives us buying power for over 30 restaurants, and we’ve got teams and strategic expertise that will assist those fledgling brands to thrive.” This week, Page has told Propel that he and Plant have so far “looked at about ten different businesses and signed a few NDAs” and they are aiming to sign two up in the next six months before looking at bigger acquisitions. 

UKHospitality chair Kate Nicholls – “young people are in danger of entering long-term unemployment’: UKHospitality chair Kate Nicholls has warned young people are in danger of entering long-term unemployment as the sector is forced to cut back on summer holiday roles because tax rises in the autumn Budget, has made hiring more expensive. In June, when bars and restaurants typically staff-up for the English summer, job openings in the sector plunged by more than 22,000 compared with the same month last year. The figures, from the Recruitment and Employment Confederation, have led industry groups to warn of the “death of the great British summer job” Nicholls said young people aren’t learning soft skills or gaining confidence because “jobs which would normally have given them the ability to do that are being taxed out of existence”. She told The Telegraph: “As a parent and an employer, I’m really worried about this generation of young people.” Concerned that younger staff with no experience are paying the price for the tax increases, Nicholls wants the government to offer tax breaks to companies that hire the unemployed or long-term sick. She has urged Sir Charlie Mayfield, the former boss of John Lewis and head of the government’s Keep Britain Working review, to take note as he prepares to publish his conclusions this autumn. Nicholls said: “This was a generation badly impacted by covid – they missed those rite of passage summer jobs and they missed work experience at school as well. They’ve had no chance to build up their experience. It’s not that the work isn’t there or that we don’t need staff, it’s that we simply can’t afford them [since tax rises in the Budget]. The danger we’ve got is children leaving school and looking for entry-level experience who are then potentially moving into long-term unemployment. We know that impacts their life chances. People are worried.” Simon Stenning, a hospitality industry expert, said younger workers are bearing the brunt of Reeves’s tax rises because although they are cheaper than older staff “they are also less effective, which is hard for operators to afford when every labour cost is under the microscope”. Clive Watson, the founder of the City Pub Company, added: “Every pub and restaurant has had to cut back on shifts – you look after your regular staff first to give them decent hours so temporary staff have been hit hard.”

Diageo profits plunge as cost cutting target raised: Drinks group Diageo has posted a sharp fall in profit and imposed further cost cutting as the Guinness maker adjusts to a “challenging” market. Operating profit for the year ending 30 June 2025 fell by 27.8% to $4.34bn and the company is increasing its cost savings target by $125m to $625m over the next three years. Organic net sales growth is expected to be at a similar level to the last year “given a continued challenging market”, it said. Growth will be more weighted to the second half, with organic net sales down slightly in the first half. Diageo said organic operating profit growth is expected to be mid-single-digit, skewed to the second half, and will be supported by cost savings from the Accelerate programme. This also includes the impact of tariffs. Guinness delivered double-digit growth, and gained share in its three largest markets, while Guinness Microdraught opened new global distribution opportunities. In whisky, Johnnie Walker gained share of international whisky and scotch. Nik Jhangiani, who became interim chief executive following the departure of Debra Crews, said it had been a challenging year, but in line with guidance. He added: “We delivered 1.7% organic net sales growth reflecting the strength of our portfolio and our diversified footprint. While we are encouraged by areas of progress and the standout performance from Don Julio, Guinness and Crown Royal Blackberry, there is clearly much more to do across our broader portfolio and brands. We recognise the need to drive meaningful growth opportunities and we are sharpening our strategy to accelerate growth. Our Accelerate programme is progressing well and is central to creating a more agile operating model. As such, I am pleased to announce that we are increasing our cost savings target by circa $125m, to circa $625m over the next three years. We are also committed to strengthening our balance sheet and expect to deliver c.$3 billion free cash flow in fiscal 26, increasing financial flexibility whilst continuing to invest for longer term growth. While macroeconomic uncertainty and the resulting pressure on consumers continues to weigh on the spirits sector, we believe in the attractive long-term fundamentals of our industry and in our ability to continue to outperform. We are focused on what we can manage and control and executing at pace. The board and management are committed to delivering improved financial performance and stronger shareholder returns on a sustained basis.”