Itsu founder – ‘we are making really good headway on franchising’, ‘we overdid kiosks’: Julian Metcalfe, founder and group chief executive of Itsu, the healthy Asian food brand, has said the business is making “really good headway on franchising”, but the business needs another year before it “will really start” and franchisees will “come in droves”. Speaking at the Lunch! Show 2025, Metcalfe said: “Franchising a restaurant concept will only really work if that concept is brilliantly thought through, has a fabulous process and has a really good relationship with its customers and its product/offer. It also has to be really profitable. So, it is very difficult. They’re not that many modern hospitality restaurants and fast-food places that are franchising successfully. And so, we will get better at it through a combination of a brilliant process, fabulous equipment, but most of all, great leadership from the teams really trying to get rid of the hideous complexity and retain very, very good fresh food. There are really not that many people who have franchised a fresh, healthy concept, but we are making really good headway. Give us another year, we’ll really start. And when they (franchisees) start coming, they come in droves. If they can see it’s a route to great success and growth, they come. But then you’ve got to choose the right ones. That’s key. Really important.” Metcalfe also admitted the group made a mistake by adding too many self-service kiosks to its circa 80-strong estate amid concerns over rising labour costs. He said Itsu “overdid it” and was in the process of removing screens from many of its sites. He said: “After Brexit, there was a real fear the labour costs in this country were going to go to like £20 an hour. In fact, they haven’t gone to £20 an hour for many of us, but clearly the cost of labour is going up and up. So, we kind of overdid it, we put in too many screens, we’re taking many out. I think every single Itsu will be half screens and half tills. Young people love the screens, older people struggle, and at my age, they just can’t do it at all. We were told the basket size would go up with the screens, but it didn’t. It didn’t at all. The more times you push, do you want this? Do you want that? Personally, I find that really, really irritating, so we don’t upsell very much. That’s why the basket hasn’t gotten bigger. I’d rather have a small basket and a happy customer than endless; do you want this? You’ve got to try and put yourself in the shoes of the customer.”

 

Comptoir reduces losses in ‘robust’ first half performance: Comptoir Group, the owner of the Comptoir Libanais and Shawa brands, has reported “robust” trading for the six months ending 29 June 2025 as revenue increased 0.6% to £16.0m (2024: £15.9m), a 1.6% increase on a like-for-like basis. The group posted adjusted Ebitda before highlighted items of £0.1m (2024: loss of £0.6m). Pre-tax losses reduced to £69,000 from £1.7m the previous year. The company stated: “Driving covers growth and building our genuine value for money offering continues to be a core focus for the board and management team, despite the challenging macro conditions that are expected to continue for the medium term. In the meantime, operating as efficiently as possible, particularly with regards to proactive management of labour costs and overheads, is a key focus from our operations and finance teams. The core Comptoir estate performed for the most part in line with management expectations, however a handful of sites remain a focus as we move into the second half of the year. Shawa continues to deliver good sales and profitability from the two sites in Westfield and Bluewater, demonstrating a very real opportunity for further growth of the Shawa format, which we are actively reviewing. As highlighted in our 2024 annual report, to ensure focus of management’s time on core sites and brands, the Kenza restaurant was closed during the half-year, along with the Comptoir Bluewater site. We continue to proactively manage the entire estate with a view of optimising our capital allocation. Prudent capital management is absolutely key for the remainder of 2025 and beyond, to protect the group’s cash position and enable future growth beyond 2025. Adjusted net cash has improved from June 2024 however this continues to be an area of board scrutiny and management focus as we look to further strengthen the group’s balance sheet and position the company for future growth.” Chair Richard Kleiner said: “Against the background of well documented ongoing challenges for the hospitality sector, I am pleased to present what has been a robust first half performance by the group. Franchise operations continue to be an exciting growth opportunity for the group. Overall performance across our six franchise sites has been strong, particularly our Milan site which opened last year and is trading significantly above expectations. Franchise has always been a low-capital intensive route to increasing presence of our brands, and we will proactively assess whether further opportunities exist.” The group owns and operates 20 sites, with an additional six franchise locations.

 

Bill’s in ‘advanced international conversations’, reveals more details on next year’s ‘big London opening’: Bill’s managing director Tom James has said the brand is in “advanced international conversations”. Propel revealed in March that the 48-strong business was actively seeking international franchise partnerships and was looking at opportunities in the Middle East, south east Asia and India. Speaking on the restaurant leaders’ panel at The National Restaurant Pub & Bar Show 2025, James said: “We are in advanced international conversations. There are certain markets – we’ve got to be really clear where we sit in the market and where there are opportunities. You can’t go into it for vanity, there’s so many dangerous stories from the past, but it’s rather exciting to look at markets where there is opportunity. Big communities and families – that’s where Bill’s sits really well and aligns with our brand – so watch this space.” James also revealed more details about the brand’s flagship London launch in 2026, having told the Propel Multi-Club Conference this month that it has a “big London opening in March of next year”. He said. “It’s our biggest site for the last ten years and will be in Westfield Stratford. We already have a site in Westfield White City, which does really well, so it’s really nice to be getting a big, 6,500 square-foot location in the capital.” James also said a consistent and unchanging method of operating does not work anymore. “We’re in such a dynamic environment at the moment,” he said. “Great operators are generally metronomic in their approach – they come up with a great system that means they can consistently deliver – but that world is now gone. Now, it’s looking at the market and changing this, doing that, seeing that this opportunity has come along and you have to do this – and I think that change in management has happened really quickly over the last few years. You’ve got to look at every opportunity and you’ve got to take it quickly. You’re emptying that tank every day to keep that energy up; to keep changing and to keep running on every level. You have to be winning on every level, and the minute you slack off, there’s a major indication in sales and financial performance.”

 

BBPA CEO – ‘without urgent government action, more than 2,000 pubs may vanish next year’: Emma McClarkin, chief executive of the British Beer & Pub Association, has warned that without urgent government action, more than 2,000 pubs may vanish next year. Writing in The Telegraph, she said: “Our new analysis lays out the reality: thousands of pubs could shut their doors, putting the equivalent of more than 12,000 jobs under threat. Closure is piling on closure. By the end of 2025, we estimate 378 pubs – more than one every single day – will be out of business. This perfect storm has been years in the making. The cost of doing business is simply too high. The upcoming end of business rates relief, the looming 2026 revaluation of business properties, sky-high operating costs, and one of the most punishing tax regimes are combining to choke the sector. Soaring labour and compliance costs make it increasingly difficult for pubs to pay staff fairly and remain viable. When most of the money in the till goes straight back out in bills and taxes, profitability becomes impossible – and closure inevitable. The chancellor holds the fate of these institutions and the thousands of jobs and communities that rely on them in her hands. The autumn Budget is an opportunity for her to reset and reform business rates. A maximum 20p-in-the-pound reduction in the levy – already made possible through new legislation – would be revenue-neutral for the Treasury and could protect almost half of at-risk pubs while generating nearly £100m in economic value. Rachel Reeves should cut draught and packaged beer duty by 5%, bringing us closer to European averages and helping offset spiralling costs. She should mitigate the employment cost burden, including reform of employers’ national insurance contributions and a sustainable approach to wage legislation. The decision to cut draught duty by 1p last October was welcome; but we have been promised major, meaningful reform and now it needs to be delivered with this Budget. This is the opportunity to reset.”

JKS Restaurants MD – ‘lots of white space in the US for premium Indian restaurants’, ‘being able to find Michelin star-level chefs from India is a huge challenge’: JKS Restaurants managing director Laura Irvine has said she sees “lots of white space in the US for premium Indian restaurants”. JKS made its debut in the US last year with the opening of a site under Berenjak, the Persian-influenced brand it founded with Kian Samyani, in New York, and it this week opened its first public-facing Berenjak site in the US, in the Garden at Soho Warehouse, in Los Angeles. This autumn, the company’s first US location of Ambassadors Clubhouse will open in Manhattan’s NoMad neighbourhood, while later this year, JKS will launch its second US Indian restaurant with the opening of a Gymkhana in Las Vegas. Speaking on the restaurant leaders’ panel at The National Restaurant Pub & Bar Show 2025, Irvine said: “From a US perspective, today is our first day of trading for Berenjak in Los Angeles. We think there is lots of white space out there for premium Indian restaurants, so we’re opening in New York in four weeks and Las Vegas in eight weeks. We’re starting to see how we can spread that kind of regional Indian food to the US market, which is really exciting.” However, Irvine said while it is still possible to sponsor chefs from India in the US, it is now far more of a challenge to attract the right talent to the UK. “One of the challenges we face is the change in immigration laws,” she said. “From a premium Indian restaurant perspective, it’s harder to attract talent from outside the country, and being able to find Michelin star-level chefs from India is a huge challenge.” Irvine also said the company is looking to ramp up its retail range. She added: “What we’re looking at is if we’ve got a restaurant as full as it can be, how can we use that brand to extend to different products? You can see it in the casual dining space with brands like Itsu. Gymkhana Fine Foods is our own version of a two-Michelin star Indian, which is in Whole Foods and Sainsbury’s and is about to launch in the US. So, it’s taking a brand that is bricks and mortar and looking at how we maximise it and give more people access to those flavours – and to almost be a gateway to the restaurants as we grow our Indian brand.”

Activist investor moves to rustle up takeover interest in Upper Crust owner SSP: Irenic Capital Management, an activist hedge fund run by an Elliott Management alumnus, is trying to drum up interest in a take-private deal for Upper Crust owner SSP Group after boosting its stake in the food-to-go operator. The New York-based hedge fund is encouraging private equity groups to launch takeover bids for the London-listed company. The fund has shared materials about the merits of a leveraged buyout with investment bankers and private capital firms in recent weeks, according to a pitch deck seen by the Financial Times. Irenic argued SSP could be valued at a 50% premium to its market value in a take-private deal, the deck said. The hedge fund points to SSP’s predictable revenues, its capacity to grow in US airports and ability to generate capital through the sale of non-core assets, including its stake in a listed Indian joint venture. Travel Food Services, the Indian venture in which SSP is a controlling shareholder, is valued at 177bn rupees (£1.48bn), compared with SSP’s market value of £1.25bn. SSP operates food outlets in railway stations and airports, including Upper Crust, Caffè Ritazza and franchised outposts of M&S Simply Food and Burger King. Irenic’s approach at SSP has apparent similarities with an activist campaign it launched in 2023 at Wagamama owner The Restaurant Group, which swiftly resulted in a £506mn sale to private equity group Apollo Management. Irenic declined to comment. SSP said: “We welcome the feedback and views of all our investors. We are entirely focused on delivering progress against our clear strategic priorities in order to deliver sustainable growth and returns for all of SSP’s stakeholders.” Irenic now owns roughly 3% of SSP’s stock, up from 2% when the Financial Times first revealed its stake in May, according to people familiar with the situation.

Wahaca MD – ‘we’re just not seeing that consistency in understanding of what tomorrow’s going to look like’: Wahaca managing director Gemma Glasson has said the biggest challenge the brand faces is “we’re just not seeing that consistency in understanding of what tomorrow’s going to look like”. Speaking on the restaurant leaders’ panel at The National Restaurant Pub & Bar Show 2025, Glasson said: “For us, the biggest challenge is customer covers and really being able to know what does an August look like? What does a July look like? July was absolutely pumping for us and I was really excited. In August, we generally have volumes as we’ve got some great restaurants that benefit from tourist footfall, but it just really didn’t really happen for us. And then we had the tube strikes immediately after that. You want to build up some momentum and know what’s coming your way – and whether it’s something that happens through intervention from the government or otherwise, we’re just not seeing that consistency in understanding of what tomorrow’s going to look like.” Glasson also said she feels a constant pressure to keep innovating so the 14-strong business does not stand still. She said: “There is a constant need to innovate and present your brand in a way that is fresh and contemporary. You can’t just rest on your laurels and assume the brand will keep ticking over and people will keep coming in the restaurant. Even if you’re great in operations and at executing things, it’s really thinking ahead and thinking about what’s happening on TikTok, and how we can show that in a way that adds fresh life into our brand and restaurants. That is exhausting and takes a lot of time and execution.”