Franco Manca operator reports turnover hits £100m in year before it was taken private: Fulham Shore – the operator of the Franco Manca and The Real Greek brands – has reported turnover increased 20.8% to a record £99.9m for the year ending 26 March 2023 compared with £82.7m the year before – the first full year before it was taken private. The company, which operates 96 company-owned restaurants in the UK, 70 under Franco Manca and 26 under The Real Greek, made a pre-tax loss of £4.8m compared with a profit of £3.9m the previous year. Headline Ebitda stood at £18.5m (2022: £20.3m) and adjusted headline Ebitda was £9.5m excluding IFRS 16 (2022: £12.4m). Ebitda stood at £17.2m (2022: £19.5m) and adjusted Ebitda was £7.6m excluding IFRS 16 (2022: £11.4m). Headline operating profit was £5.8m (2022: £9.0m). The company had a net impairment charge on property, plant and equipment of £4.3m (2022: £0.6m). Fulham Shore said in the 11 months since the beginning of its current financial year, Franco Manca has “continued to trade well” but The Real Greek had a “disappointing summer due to the prolonged low temperatures and heavy rainfall limiting the availability of our external terraces”. In their report accompanying the accounts, the directors stated: “Our restaurants are still busy with customers seeking a great experience and value for money in the current inflationary climate. Over the years we have invested our profits in new restaurants, creating jobs, food quality and spreading the word about our great food and prices at Franco Manca and The Real Greek. Fulham Shore has the financial headroom to continue our controlled expansion programme with our cash balances and borrowing facilities.” A total of 13 Franco Manca pizzerias (including one relocation) and five new The Real Greek restaurants opened during the period in the UK, which were all funded by cash flow (2022: six Franco Manca pizzeria and four The Real Greek restaurants). Two sites were closed. The openings included Franco Manca sites in Cardiff, Windsor and three in the Manchester area, as well as five new The Real Greek restaurants including St James Quarter in Edinburgh and the Silverburn shopping centre Glasgow. Fulham Shore said the new locations have all been well received, with Cardiff and Edinburgh being especially busy since opening. Fulham Shore also entered into a Franco Manca franchise agreement for Spain, with the first Franco Manca pizzeria opened under franchise in Malaga with the franchisee having plans in place for minimum of 12 restaurants over the next three years. Fulham Shore said further sites are under negotiation and in solicitors’ hands while one The Real Greek site is under construction at the Meadowhall shopping centre in Sheffield. The group said it continues to explore a number of additional international territories where franchised restaurants could be opened, and is currently in discussions regarding territories in Europe, the Middle East, and Africa. The group received £0.1m in government grants (2022: £2.4m). No dividend was paid. In July 2023, Fulham Shore was taken private in a £93.4m deal by Great Sea Kitchens, a newly incorporated company established on behalf of Toridoll Holdings Corporation. Toridoll, which is a global food company listed on the Tokyo Stock Exchange with circa £1bn consolidated net sales and a current market capitalisation of approximately £1.5bn, has set up a new company called Bidco to oversee the acquisition.

Revolution Bars Group – no ‘suitable’ acquisition offers yet: Revolution Bars Group – the operator of the Revolution, Revolución de Cuba and Peach Pubs brands – has said it has not had yet received any “suitable” offers to acquire the group. The company last month set out its proposed restructuring plans, including a £12.5m fundraise and the closure of 18 sites, alongside the launch of a formal sales process (FSP). The group then postponed its planned general meeting “to provide additional time to fully explore all strategic options”, and last week revealed that 32 parties participated in its FSP as it “welcomes the interest of all parties in the group” and is “open to exploring all options that may deliver a superior outcome to its restructuring plan”. Giving an update on the process, the company said: “The board confirms that as at the date of this announcement, phase one of the FSP and M&A process has not resulted in any proposals relating to the acquisition of the entire issued share capital of the company, or the acquisition of the company’s assets as a whole via a single transaction. In the FSP and M&A process, the group has received a number of proposals in relation to certain of the company’s assets, including, but not limited to, the acquisition of certain of its subsidiaries and/or the businesses and/or assets owned or operated by certain of the company’s subsidiaries. However, none of the proposals presented (or any combination thereof) would result in a financial return to shareholders. The board continues to explore the FSP and M&A process, alongside the company’s other strategic options. As noted in the announcement of 10 April 2024, these other options include a fundraising supported by existing and new shareholders, which is conditional on (amongst other things) the successful implementation of a restructuring plan by Revolution Bars. The board notes that, should the restructuring plan proceed and be sanctioned by the court, it would preserve value for the company’s current shareholders, acknowledging the dilutive effect of the fundraising for those shareholders who have not participated in it pro rata to their current shareholdings. The board further notes that the fundraising will require the approval of the company’s shareholders in the general meeting. Shareholder approval of the fundraising would enable the restructuring plan to be progressed but would not preclude the directors from exploring any other option that may deliver a superior outcome to the restructuring plan. The directors will also consider any proposal made by Nightcap. Accordingly, the approval of the fundraising by shareholders will enable the directors to maintain maximum optionality in seeking the best outcome for all stakeholders, including shareholders. Further details of the general meeting will be announced in due course.”

Greggs reports 7.4% lfl sales growth in 2024 driven by delivery, evening trade and increased app activity; on course for up to 160 net openings this year: Greggs has reported 7.4% like-for-like sales growth in the first 19 weeks of 2024 to £693m (2023: £609m) in its company managed shops – driven by delivery, evening trade and increased use of its app. Its new over-ice drinks range, currently available in 300 shops, is performing well and will be rolled out to up to 700 shops in the coming months. Pizza boxes have been in strong growth and hot food continues to perform well, with its Southern Fried Chicken Goujons and Southern Fried Potato Wedges proving popular. The company will also continue to extend its range of healthier choices, introducing the vegetarian Pesto and Mozzarella Pasta and Feta and Tomato Pasta, alongside its award-winning vegan Sweet Potato Bhaji and Rice salad bowl. During the period, Greggs opened 64 new shops, including 15 with franchise partners. Recent shop openings have included sites at Embankment underground station, four shops with Tesco and three with Sainsbury’s, the latter including two petrol filling station locations. It has also closed 37 shops (including 23 relocations), giving a total of 2,500 shops trading at 12 May (comprising 1,986 company-managed shops and 514 franchised units). The pipeline for the remainder of the year is strong, including a number of further opportunities with supermarket groups, and Greggs remains confident in achieving 140-160 net openings for the full year. Projects at its Birmingham and Amesbury distribution centres are progressing well and will deliver additional logistics capacity by the end of 2024. The fourth production line for its savoury rolls and bakes at Balliol Park in Newcastle has now been commissioned and will increase production capacity at the site by 35% over time. The company said: “In order to support the longer-term growth potential of the business we are, as previously communicated, progressing with the development of two new sites in the Midlands which are expected to be operational in late 2026/early 2027. We have entered into an agreement for lease on a site at SmartParc Segro Derby for a facility that will be the focus of our increased manufacturing capacity needs whilst also supporting expansion of our logistics network capacity. The landlord is currently constructing the building, following which we will develop and install the first phase of manufacturing and logistics equipment through 2025 and 2026. In addition to the self-funded capital expenditure to install the equipment a leased right-of-use asset of circa £65 million will also be recognised on the commencement of the lease. We are progressing negotiations on the purchase of land in the Corby/Kettering area, where we will develop a national distribution centre for chilled and ambient goods. This site will significantly extend our logistics capacity across the network to circa 3,500 shops and deliver efficiencies through semi-automated storage and picking solutions. We aim to exchange contracts on the purchase of the land in the coming months.” It added: “We have made a good start to the year with continued like-for-like growth in a challenging market, reflecting the strength of our strategic plan. There has been no change to the outlook for cost inflation, which we expect to be in the range of 4-5% on a like-for-like basis. While early in the financial year, the board’s expectations for the full year outcome are unchanged.”

Various Eateries reports 10.2% sales growth driven by new site openings, trading ‘resilient’ so far in second half, Richmond site open and Cardiff set to follow this month: Various Eateries, the Hugh Osmond-backed business, has reported 10.2% sales growth in the 26-weeks to 31 March 2024, driven by new site openings, and said trading has been “resilient” so far in the second half. Sales in the period grew 10.2% to £22.7m (H1 2023: £20.6m) while group like-for-like sales were marginally down, against a backdrop of one of the wettest winters since records began and with the company maintaining its strategy of absorbing most price increases. “As previously stated, while this strategy puts temporary pressure on margins, management believes prioritising customer satisfaction over short-term profit will position the group well for substantial growth once market conditions improve,” the group said. “The group’s financial position remains strong, with cash at bank of £7.2m as at 31 March 2024 (H1 2023: £3.1m). “Encouragingly, the deceleration of food and utilities cost increases reported at the full year has continued. The group’s primary expense challenge this year is expected to stem from the April 2024 implementation of the largest-ever minimum wage rate increases, with a large proportion of the group’s workforce receiving significant pay rises. To mitigate inflationary pressures while enhancing the overall customer experience, management continues to actively explore initiatives such as at-table digital ordering at some sites.” On new openings, it said: “Noci Richmond opened its doors in May 2024, consistent with the group’s near-term strategy to focus expansion primarily on the specialist quality pasta concept in and around London. The brand’s fourth site, in the popular Richmond area, is a 90-cover restaurant based at the heart of the neighbourhood. The site has a similar profile to Noci Islington and is expected to see a similar positive sales trajectory as the venue beds in. Coppa Club Cardiff remains on track to open later this month. The brand's third townhouse site is located in the city's popular leisure and shopping destination, The Hayes, benefitting from both high footfall and proximity to several large arenas including the Principality Stadium. Coppa Club Cardiff brings an all-day focus to hospitality in the Welsh capital, boasting elevated design, two bars and unique private dining spaces for events and corporate bookings. The pipeline for further new locations is strong with high levels of premium site availability and a keenness on the part of landlords to work with the Group. Management will continue to carefully appraise each opportunity, only progressing those that meet its strict criteria for long-term success.” On current trading, it said: “Trading at the start of the second half has been resilient, despite the uncharacteristically wet and dull weather, and management is optimistic ahead of the important summer trading months. While there are signs the macroeconomic picture is improving, the landscape continues to require careful navigation. Management remains committed to taking the necessary steps to work through it, maintaining its strategy of prioritising customer satisfaction while improving operational efficiency.” Andy Bassadone, executive chairman of Various Eateries, added: “We remain steadfast in our approach, prioritising the preservation of the integrity of our brands over short-term financial gain, confident that this strategy strengthens our capacity for sustainable and profitable long-term growth. We are seeing the goodwill generated in our communities translate into customers returning time-and-time again, knowing they can rely on us to continue to provide a high quality and affordable experience where others are making compromises. With several key operational enhancements made to our estate in the period, we firmly believe Various Eateries is well-positioned to grow into one of the UK’s leading hospitality groups, and enter the second half with a growing sense of optimism.”