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Morning Briefing for pub, restaurant and food wervice operators

Tue 21st May 2024 - Propel Tuesday News Briefing

Story of the Day:

Itsu – seeing great lfl sales growth, gearing up to open Paris flagship, set to launch in Holland: Julian Metcalfe, founder of Itsu, the healthy Asian food brand, has told Propel that the business is seeing “really great like-for-like sales growth”. He said the business has 15 sites in the pipeline, and will start building its first sites in Holland soon. Of the sites in the group’s pipeline, two will open in Oxford Street, while Propel understands that Itsu has also lined up an opening on the former Le Pain Quotidien site in Fish Street, near Monument station, in the City. Last month, Scoffs Group – the largest Costa Coffee franchisee in the UK with 112 stores – opened its first site with Itsu, in Exeter, Devon. Metcalfe said: “Itsu is thriving on account of our ongoing commitment to selling freshly made, healthier food at affordable prices. Our new Rice'box salads at £6.99 must be the best value, most nutritious food on the high street by a long way. We're seeing really great like-for-like sales growth. We had a record opening two weeks ago in Exeter and we currently have 15 new Itsus in the pipeline with not one, but two, in Oxford Street. While many new openings show positivity and commitment, it's really meaningless compared with the day-to-day quality of pioneering, healthier food and restaurant innovation.” In 2022, the company signed a franchisee agreement with French restaurant group, Groupe Bertrand, which would see it open sites across France. It opened its debut site in France at the end of that same year in Paris, at 4 Avenue du Président Wilson. Metcalfe told Propel that it is “soon to open a real flagship in Paris, which is in build now at Opera”. He also said that the company is to “start building in the Netherlands soon”. Propel understands that Itsu is currently committed to opening three sites in the Netherlands – two in Amsterdam and one in Schiphol airport. On the group’s ambitions in Europe, Greg Thorp, chief financial officer at Itsu, told Propel in March: “We’ve got two shops in Europe, and we want that to be significantly higher. So, European airports, more openings in France – in Paris – I hope we do five shops in Europe this year. We will open in the Netherlands in the next 12 months. In France, we’ve got a second or third shop to come out this year, and we want to do far more there. Another market or two this year would be great, and we have spoken to various big European partners to aid that ambition.”

Industry News:

Next Who's Who of UK Hospitality to be released on Friday featuring 872 companies: The next Who's Who of UK Hospitality will be released to Premium Club members on Friday (24 May), at midday. Another 11 companies have been added to the database, which now features 872 companies. This month's edition will also include 42 updated entries. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium Club members will also receive all the videos from this month’s Excellence in Pub & Bar Retailing Conference on Friday, 31 May at 9am. They will include Jonathan Lawson, chief executive of Liberation Group, discussing how the award-winning business has maintained its high standards while continuing to grow its mainland estate, the development of its bedrooms business as its targets a 700-bedroom division, and the integration of the Cirrus Inns business, including its entry into the London market; and Oisin Rogers talking about the creation and running of The Devonshire, the Soho-based pub that incorporates a three-metre-long bespoke wood ember grill, the first of its kind in the UK; an on-site aging chamber that is the biggest in central London; its own bakery; three dining rooms; and the extraordinary lengths it has gone to deliver the perfect pint of Guinness. Premium Club members also receive access to five other databases: the Multi-Site Database, produced in association with Virgate; the New Openings Database; the Turnover & Profits Blue Book; the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Clubs members will be offered a 20% discount on tickets to Propel paid-for events including Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators that are Premium Club members are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.

Foodservice inflation returning to ‘more normal levels’: Foodservice inflation is returning to “more normal levels”, according to the latest Foodservice Price Index report from Prestige Purchasing and CGA. The report shows April 2024 saw a significant year-on-year fall in inflation of 2.5%, continuing a steady trend towards stability in pricing. However, the data reveals a nuanced picture across different food categories. Only two categories recorded month-on-month deflation, while six others showed inflation rates of 1% or less. While there is a degree of price stability across most segments, some areas are subject to fluctuation, the report said. This has led to the first month-on-month inflation since January – a sign that although the foodservice sector is recovering well from recent global disruptions, some supply issues continue to impact pricing. Standout categories in the latest report include vegetables, which saw the highest month-on-month inflation of 1.4%. This increase follows extreme weather conditions in the UK and Europe, including one of the wettest winters on record. Conditions have hampered planting and impacted crop yields, leading to a scarcity of fresh produce and driving up prices for both consumers and businesses, the report said. Shaun Allen, chief executive of Prestige Purchasing, said: “The report paints a picture of cautious optimism for the industry. While some categories are still experiencing price fluctuations, the general trend towards lower inflation rates is a positive sign for the sector's recovery. However, it is important to remain vigilant about the potential impact of external factors, such as weather patterns and global events, which could continue to influence prices in the coming months.” James Ashurst, client director at CGA by NIQ, added: “This news should give business confidence a much-needed boost, and will hopefully also feed through to increased consumer spending in due course.”

Sunday worst day and autumn worst season for hospitality no-shows: New research has shown that Sunday is the worst day and autumn the worst season for hospitality no-shows. The survey of more than 1,000 UK adults by hospitality technology business Zonal and CGA by NIQ also reveals the main reasons guests do not turn up for a reservation. Having a change of plans (27%) came out on top, followed by others in the group cancelling (21%), people booking multiple venues to ensure they would get in somewhere (20%), one member of the group falling ill (20%) and forgetting about a booking (15%). No-shows cost the industry £17.59bn per year in lost revenue. Tim Chapman, chief commercial officer at Zonal, said: “People not honouring their reservations continues to be a challenge for the industry. Plans change and that cannot be helped, but in order to reduce the risk of no-shows, we need to continue finding ways to educate consumers on what impact this has on their favourite pubs, bars and restaurants. Operators that have digital systems in place, enabling customers to manage bookings online, will be able to reduce no-shows from happening.” Zonal launched the #ShowUpForHospitality campaign in 2021 to help operators mitigate the risk of no-shows, as well as raise awareness of the importance of guests turning up to a booking or informing a venue if they can no longer make it.

Economists hopeful inflation will hit 2% target this week: Inflation could reach the Bank of England’s 2% target this week, boosting the chances of an interest rate cut in June. The Times reported that on Wednesday (20 May), the Office for National Statistics will publish inflation data for April that is expected to show the pace of price rises falling to within touching distance of the target. Many City analysts expect a reading of 2.1%, down from 3.2% for March. The bank also expects the rate to hit 2.1%. However, some experts have said there is a strong chance that the rate will match the elusive 2% goal, thanks to weaker food and energy price increases. Ofgem, the energy watchdog, lowered its cap on household fuel bills by nearly 12% in April to £1,690. It would be the first time that the bank has achieved 2% inflation since July 2021, and it could potentially pave the way for a cut in interest rates, the main monetary policy tool for keeping inflation under control. Thomas Pugh, an economist at RSM UK, a consultancy, said there was “a decent chance” of meeting the target. Paul Dales, chief UK economist at Capital Economics, another consul¬tancy, predicted that inflation in April may even have fallen to 1.9%.

Huge fall in apprenticeships under ‘broken’ levy: The number of new apprenticeships has fallen by up to two fifths since the introduction of the government’s “broken” levy system, new research shows. The Times reported there has been a 41% decline in the number of apprenticeship starts for those under the age of 19 since the scheme came into force, according to analysis by the Chartered Institute of Personnel and Development (CIPD), the professional body for HR workers. For those aged between 19 and 24, participation has fallen by 36%. The levy, introduced in 2017, requires employers with an annual wage bill of more than £3m to pay 0.5% of payroll costs into a fund for training. It has come under fire from businesses such as AO World, Timpson, Tesco and the Co-op, which have argued that inflexibility, unsuitable courses and programme lengths are the biggest barriers. As a result, £4.4bn raised by the levy had been kept by, or returned to, the Treasury over the past five years, rather than being spent on apprenticeships. It has also led to a decline in training opportunities and to the emergence of lower-quality schemes, the CIPD claimed. According to the CIPD, which surveyed more than 2,000 businesses, only 54.6% of courses were completed in 2021-22. Meanwhile, 54% of companies paying the levy admitted that they had converted existing training activity into apprenticeships programmes to claim back their allowance. The CIPD said the findings highlighted that the scheme was not “appropriate for people’s needs” and incentivised employers to “rebadge” training for existing staff as apprenticeships so they can claim back funding. 

Job of the day: COREcruitment is working with a specialist procurement business that works with various sectors that is seeking a category manager. A COREcruitment spokesperson said: “You will be responsible for all dried and frozen categories by implementing procurement strategies, managing supply base, negotiating the best deals, and seeking for opportunities to increase and improve the categories.” The salary is up to £60,000 and the position is based in Manchester. For more information, email mikey@corecruitment.com. 

Company News:

Fast-growing pizza franchise secures first international sites as it aims for 100 locations by next year: Fast-growing pizza franchise The Fat Pizza has secured its first international sites as it aims to reach 100 locations by next year. The Fat Pizza was founded by Sunny Chhina in Southend, Essex, in 2020, and it has now grown to circa 40 branches throughout the country. Chhina, who also owns a consultancy business called Takeaway Doctor, posted to social media: “Looks like we are going international...Dubai signed and India on the way.” The Fat Pizza is also looking to keep growing in the UK and exhibited at the recent International Franchise Show at ExCel London. The Fat Pizza website states that it is looking to add 50 further locations in 2024, while its statement to accompany its exhibition at The Business Show in London later this year states that it plans to get to 100 sites within the next nine months. “By 2024, The Fat Pizza will be the fourth largest pizza brand within the UK,” it said. “The Fat Pizza model means that we are able to open stores very rapidly – a store can be converted to Fat Pizza within four weeks. The Fat Pizza is flexible with its choice of location – we have high street locations, delivery-only commercial kitchens, pure kitchen space as well as restaurants and pubs and bars.” Pizza certainly runs in the family, with Chhina recently telling Pizza & Pasta Magazine that his parents were franchisees with Perfect Pizza in the 1990s, and he decided to strike out on his own after the brand was taken over by Papa John’s. “I think I’ve had a pizza every day since I was 13 years old,” he said. “I learnt about the industry early, running one of the stores at 17 – doing my A-level studies out the back of the shop. My dad was friends with the bank manager, so I asked if I could get a loan for a franchise of my own, and the rest is history. I’d had various franchises but realised that I wasn’t learning much anymore, so The Fat Pizza was born. It’s also my own secret recipe, so I’ve had a hand in every pizza we’ve produced – the main machine that makes our dough mixture is in Southend and I put all the ingredients in. My two teenage boys are a big part of the business as they’ve been coming into stores since they were around five or six years old, providing honest feedback. In fact, my eldest, Ishaan, has been directly involved with putting carbon ratings on our menus.”

Wimpy UK reports ‘political and economic uncertainties persist’ as full-year turnover increases to £7m: Famous Brands has said political and economic uncertainties persist for its UK Wimpy business as it reported revenue for the division increased to £6,983,490 (162 million rand) for the year ending 29 February 2024 compared with £5,932,405 (142 million rand) the previous year. Operating profit was down 3% to £775,938 (18 million rand) from £793,967 (19 million rand) the year before. Operating margin after impairment for the year remained at 11.4%. Famous Brands stated: “Political and economic uncertainties persist in the UK with the cost-of-living-crisis and poor consumer confidence. Our focus is on revamps and targeted growth. We have seen a drop in takeaways but improved in-dining.” The business opened one site during the period and closed three, leaving it with 63 outlets. Earlier this month, Chris Woolfenden, general manager at Famous Brands UK, told Propel that Wimpy is targeting expansion in the north, Midlands and Scotland in the UK, and is open to more non-high street formats.

Snowfox Group hires David Murphy as new CFO, promotes Carl Webber to COO: Snowfox Group – which owns the YO!, Panku, Bento and Taiko brands – has hired David Murphy, formerly of PizzaExpress, Wilko and Tesco, as its new chief financial officer for Europe, Propel has learned. Murphy joins the Richard Hodgson-led business after spending just over a year at Wilko as its chief financial officer. He also had a year as chief financial officer at residential and holiday park operator Haulfryn Group. Murphy stepped down as finance director for PizzaExpress UK & Ireland in May 2021 after more than four and half years in the role. Murphy has left the brand, which he originally joined in October 2014, as group financial controller, to join Haulfryn Group. He was also previously finance director at Tesco. At the same time, Snowfox Group has promoted Carl Webber to chief operating officer. Webber, formerly of PizzaExpress and JD Wetherspoon, joined the business as its new UK retail director, last summer. 

EL&N to launch new deli and bakery concept in London’s Covent Garden: Cafe and lifestyle brand EL&N is set to launch a new deli and bakery concept in London’s Covent Garden. The EL&N Deli & Bakery will open in Covent Garden’s heritage-listed Market Building in July, introducing a new range of artisanal bakery products including fresh focaccia and a range of sweet and savoury pastries. It will have room for 14 diners inside the 650 square-foot space and a terrace with 54 alfresco dining covers on Covent Garden’s historic piazza. EL&N founder Alexandra Miller said: “Covent Garden is an iconic London destination that EL&N has always wanted to expand into, so introducing our new concept there was a natural evolution for us. The neighbourhood has a unique character that we wanted to ensure we connected with, and the creation of our first sub-brand, EL&N Deli & Bakery, has been designed to align with this, engaging with both the destination’s rich heritage and pioneering roster of innovative, flagship concepts from world-class brands.” Earlier this month, EL&N said it is looking to ramp up its international expansion plans and has begun the process of securing new partners across the globe. The business currently operates circa 35 sites across 12 countries, with new territories under consideration thought to include the US, Japan, India and further parts of Europe. The business entered its 12th international market in October when it opened in Warsaw, Poland, and it is also set to make its debut in Lebanon later this year. It will also this summer open a circa 2,600 square-foot, 92-cover site in Westfield London. Also coming to Covent Garden this summer is British-owned matcha brand Jenki, which will be opening its third matcha bar, at 50a Long Acre. It will join the recent-opened Aguamiel, billed as London’s first “churreria” (a casual venue majoring on churros doughnuts), at 24 Wellington Street, and Empanada Circle, offering a grab-and-go menu of traditional Argentinian empanadas, at 3 New Row.

Vegan fast food concept Hank’s Dirty ceases trading, Cambridge and Ipswich sites saved from closure: Vegan fast food concept Hank’s Dirty has ceased trading, although its Cambridge and Ipswich sites have been saved from closure. Founded in 2019 by Geoffrey Bligh and Philip Rivers, Hank’s opened its debut site in Ipswich that same year and followed that with restaurants in Colchester, Cambridge, Felixstowe and Norwich. “It is with great sadness that I have to write this post,” the company posted to social media. “Hank's was heading into a successful summer season with lots of plans on the go. A refurbishment in Colchester, live music in Ipswich, new technology in the business and even franchising. These exciting changes were funded by a new business investment that was to be brought into the business in early May. Unfortunately, after a small delay, the company facilitating this investment delayed the payment for three months at the very last moment. The shock of this decision had a huge impact on the business and a significant amount of money had already been spent on these new projects. We’ve spent the past few days doing everything we could to try to resolve the situation, but it has left the business in a bankrupt situation. Sadly, it has not been possible to find a way around what has happened. After five years, I’ve had to make the awful decision to stop trading.” The company added that its Cambridge location will continue to be operated by Snug Bars, which it had partnered with for the site. The Ipswich location has since also been “saved” by two former members of staff, according to the Suffolk News. A further statement on social media said: “Ipswich Hank’s is back. After the devastating news of Hank’s closing, we (Shaun and Elora) have decided to take on Hank's Dirty in Ipswich. After both of us working for Hank’s for the last four plus years we aren’t ready to watch it leave. It has been a pleasure working for Geoff and Phil for the last few years and we have learned a lot. We have also worked with some great people who have helped build Hank’s reputation over the years and we hope to keep that going.”

Shropshire doughnut business rebrands and insists it’s ‘here to stay’ despite closure of five stores: Shropshire doughnut business Planet Doughnut has rebranded and insisted it’s “here to stay” despite the closure of five of its stores. Founder Duncan McGregor took the decision after a franchisee closed all four of its stores – in Widnes, Warrington, St Helens and Newcastle. McGregor also took the decision to close one of his own stores, in Lichfield, while his three remaining ones – in Shrewsbury, Chester and Telford – will rebrand as Dipp’d. Managing director Rob Jones, in a statement, said: “Despite our best efforts and continued support, one of our franchise partners has made the tough decision to close all four of their Planet Doughnut stores. We sympathise with our franchisees, as trading on the high street has been difficult in recent years. Our founder, Duncan McGregor, has also made the tough decision to close one of his stores. Duncan’s original stores will remain but will be rebranding to Dipp’d. Planet Doughnut bakery will continue to supply all three Dipp’d stores with our doughnuts. Although retail is hard at the moment, the Planet Doughnut bakery has never been busier. We're now hand making, icing, decorating and finishing 10,000 doughnuts a day and our amazing creations are more readily available across the UK than before. Planet Doughnut bakery now supplies a long list of stockists from farm shops to garden centres, pub chains, venues and the country's largest sporting stadiums. We continue to supply most major wholesalers, meaning we can deliver to every corner of the UK, and our new and updated website means we can deliver straight to your door with next day delivery.”

Caprice Holdings hires Ivo Barroso as new operations director: Caprice Holdings, the Richard Caring-backed, high-end restaurant business, has hired Ivo Barroso, formerly of Novikov Restaurants, as its new operations director. Barroso joins Caprice Holdings after 13 years with Novikov, including the past two and a half years as operations director for its International business. Earlier this month, Caring confirmed that Le Caprice is to return to the London dining scene at a new Mayfair location next summer five years after it closed down during the pandemic. He confirmed to the Evening Standard he has signed a deal to open at The Chancery Rosewood, the £1bn luxury hotel being created in Eero Saarinen’s former US Embassy building in Grosvenor Square. It is planned that the hotel and restaurant will launch in June 2025. Carbone, an Italian-American celebrity haunt in New York, is also set to take space for its first London venue at The Chancery Rosewood.

Peckwater overfunding after reaching £800,004 target, now in 300 Stonegate sites: Virtual food brands operator Peckwater Brands, which includes Stonegate Group as an investor, is now overfunding after reaching its £800,004 target in its latest crowdfunding campaign. The business has so far raised more than £826,000 from in excess of 50 investors on Seedrs, with the current campaign giving it a pre-money valuation of £80m. The company said the new funding would help it create new brands to “capitalise where the data tells us there are gaps in the market, opening up new cuisine verticals we can deploy across our estate”; upgrade its bespoke operations management platform; improve and expand its data science tooling; and accelerate its European expansion by growing its sales team, improving coverage in France and the DACH region and establishing it as the European market leader. Peckwater said it had now extended its partnership with Stonegate to 300 sites, following the pub group’s investment in the business in 2022. Propel revealed that Stonegate had invested £4m to acquire a minority stake in Peckwater. It came on the back of a trial that had seen Peckwater’s brands – mostly Seoul Chikin and Flip the Bird – made available for delivery out of 30 of Stonegate’s managed sites. 

Joule’s adds Birmingham pub to portfolio: Brewer and retailer Joule’s has acquired The New Inn in Harborne, in the south west area of Birmingham. The company said it marks a “significant milestone” as it expands its presence in the city with its 43rd taphouse. The pub will continue to be run by the existing management team. Joule’s managing director Vicky Colclough said: “We are delighted to add the New Inn in Harborne into our estate. It's a pub we have admired for many years. Bringing Joule's beer to Harborne is a milestone for Joule’s, we look forward to working to understand this taphouse and how we can invest to make it even more special.” Anna Brakel, Joule’s development director, added: “We understand the importance of patience, community engagement, and preserving The New Inn's unique spirit before implementing any significant changes. Our priority is to honour its heritage and uncover its hidden treasures. So don’t expect major alterations just yet – we're keen to immerse ourselves in the pub's atmosphere first.” Matt Phillips, of Matt Phillips Surveyors, acted on the deal.

Thornbridge JV reports 18% first quarter lfl sales growth and annual turnover up 16%, closing in on deals to double estate size: Thornbridge & Co – a joint venture between Derbyshire’s Thornbridge Brewery and specialist beer importer Pivovar – has reported 18% first-quarter like-for-like sales growth and annual turnover up 16%. It is also closing in on three deals to double the size of its three-strong pub estate. The company reported an 18% increase in sales across its bars in York, Birmingham and Leeds over the first quarter. It comes as it reported turnover for the year ended 30 March 2024 was up 16% on the previous year, up from £3,094,339 to £3,600,563. Director Jamie Hawksworth said: “These numbers are incredible when compared against the industry norm. We have a fantastic offer in the pubs and wonderful staff carrying it out to the highest standard.” In January, Hawksworth said there would be further sites opening this year, with two already at head of terms stage. Giving an update, fellow director Simon Webster said: “We have secured a new site in the heart of Sheffield city centre and are expecting to commence legals on a high-profile location in the north this summer and are in final stages of negotiations for a site in London.” The joint venture currently operates The Market Cat in York, The Bankers Cat in Leeds and The Colmore in Birmingham.

Punch adds Derbyshire pub to portfolio: Punch Pubs & Co, the Fortress Investment Group-backed business, has added The White Lion in Long Eaton, Derbyshire, to its 1,300-strong portfolio. The pub, which dates to the 18th century with real fires and has a wood-fired pizza oven housed in the beer garden, was acquired in an off-market deal. Drake & Company acted on the deal.

Persian concept Diba secures fifth site: Persian restaurant concept Diba has secured its fifth site, in Epsom, Surrey. The business, which currently operates four sites in London, has secured the former Bill’s site in Epsom’s South Street, for an opening later this year. Diba, which is led by Shahab Tari, currently operates sites in Chelsea, Richmond, Wimbledon and Marylebone. The company opened the latter earlier this year on the former Roganic site in Blandford Street. Richard Negus, of AG&G, acted on the Epsom deal. 

Bettys & Taylors reports second successive year of record sales as profit grows again: Family-owned Bettys & Taylors Group has reported a second successive year of record sales as its profit grew again in the year to 31 October 2023. Record sales of £260,585,000 in 2022 were improved upon once more as turnover grew to £295,738,000. Of this, £275,919,000 came from the UK (2022: £243,901,000), £13,377,000 from the US (2022: £11,129,000) and £6,442,000 from the rest of the world (2022: £5,555,000). Following a dip in profit in the last financial year, the company’s pre-tax profit increased from £9,870,000 to £12,917,000. A dividend payment for the period of £82.64 per share was recommended but had not been approved before the year-end. Dividends of £45.54 per share relating to the previous year were paid during the year. An agreement was also reached during the year to purchase shares from a shareholder over three years, with the first tranche acquired for £3.1m. The group had cash balances of £16.9m at the year-end, up £4.9m from 2022. The company continued to operate its five Yorkshire tea rooms, cookery school, craft bakery and online business alongside its tea and coffee merchant business, Taylors of Harrogate. Paul Cogan, group finance and resources director, said: “We have much to be grateful for as our family business has continued to thrive despite the challenging conditions. When we started the year, we expected trading to be particularly tough, and we prepared ourselves to weather the storm of high inflation, unfavourable exchange rates, and a cost-of-living crisis. It’s been a year when the creativity and agility of our people, the strength of our brands, and the loyalty of our customers have helped us deliver impressive results. As a family business that's more than 100 years old, we continue to adapt, evolve and strengthen our businesses in the face of increasing uncertainty and challenge in the world. But we hope that by continuing to put our stakeholders and our values at the heart of how we operate, we will continue to earn the loyalty of customers who see good value in our good values.”

Merlin Entertainments to open first operationally carbon-neutral accommodation with £35m Legoland Windsor development: Merlin Entertainments will open its first operationally carbon-neutral accommodation on Friday (24 May), at Legoland Windsor. The Legoland Woodland Village has received official verification of “carbon neutral” from The Carbon Trust and will be fossil fuel free on opening. The £35m development features 130 lodges and 20 camping barrels nestled among trees on a ten-acre site. Families will enjoy campfire-inspired dining beneath a twinkling tree canopy at the Clubhouse Restaurant & Bar, while there will be new on-site play areas and a Lego nature trail. Group director of sustainability at Merlin Entertainments, Dare Ilori, said: “We are thrilled to be opening our first operationally carbon-neutral accommodation. This marks a significant milestone in our sustainability journey, demonstrating Merlin's firm commitment to reducing its environmental impact. This development will provide a blueprint for other resorts, as we strive to continuously reduce our carbon footprint across our global estate and lead the way in implementing new practices and working methods.”

Kaleidoscope Collection adds fourth hotel to portfolio: Bath-based boutique hotelier company Kaleidoscope Collection had added a fourth hotel to its portfolio. It has acquired Dukes Hotel in Great Pulteney Street, Bath, which marks the group’s return to the road where it used to operate No 15 before selling the 40-bedroom venue to Guest Holdings in 2019. It joins Bishopstrow in Wiltshire, Homewood in Somerset and The Bird in Bath in the Kaleidoscope estate. The grade I-listed, 17-bedroom hotel occupies two townhouses dating to the 18th century and is named after the Duke of Clevedon. Kaleidoscope is planning a full refurbishment including all bedrooms and public areas and introducing a “boutique wellness facility”. Kaleidoscope Collection is owned by Ian and Christa Taylor, while Dukes Hotel was previously owned by Carole and Christopher Cameron. Ian Taylor said: “As Dukes integrates into the Kaleidoscope portfolio, the focus will be on continuing to bring our playful spirit into the hospitality world, while fostering a sense of community among the brilliant team and bringing them into the family with a smooth transition. Looking ahead, exciting synergies across the portfolio will be explored, especially with The Bird, which is a neighbour of Dukes. As a hotel collection we delight in being different, and we are looking forward to bringing this unique approach to Dukes as it becomes part of the Kaleidoscope Hotels.” The sale was conducted on an off-market basis by Savills.

Chef Phil Howard plans South Kensington opening for Notto concept: Michelin-starred London chef Phil Howard is set to open a third site under his pasta bar concept Notto in London’s South Kensington. Howard – who is behind Elystan Street, Church Road, and Kitchen W8 – launched Notto in London’s Piccadilly in November 2022, having changed its name from Otto following a legal issue. The venture, with business partner Julian Dyer, of Pots & Co, was the first bricks-and-mortar site for the concept, having initially launched as an online delivery service in May 2021. Last year, Howard opened a second Notto site at 4 Henrietta Street in Covent Garden. The venue has a similar layout to the first site, with a bar and high tables at the front and a more traditional restaurant at the back. Propel understands that Howard is lining up a site at 29-31 Old Brompton Road, for an opening later this year.

Buxton Brewery acquired out of administration by local high-net-worth individual: Derbyshire brewer and retailer Buxton Brewery has been acquired out of administration by local high-net-worth individual Jeremy Middleton. Rick Harrison and Howard Smith, of Interpath Advisory, were appointed joint administrators to Buxton Brewery Company and Axe Edge Bars on 20 May 2024. Founded in 2009 and operating from a custom designed and built brewhouse in Buxton, Derbyshire, the business is a producer and retailer of craft ale, producing upwards of 30 distinct brews, with volumes of around 3,500 litres per brew, daily. Trading under the Buxton Brewery brand, it supplies several supermarkets and pub brands nationally, as well as exporting overseas. In addition, the group also operates four taprooms and bars located in Buxton, alongside a pop-up bottle shop and online store. The administrators said: “In common with many other craft breweries, Buxton Brewery had experienced financial pressures in the wake of the covid-19 pandemic, which were then exacerbated in more recent times by high-cost inflation and increases to interest rates. The director sought to explore their options, including options for sale and investment, but with creditor pressure mounting, the director took the difficult decision to seek the appointment of the administrators.” Immediately following their appointment, the joint administrators sold certain of the business and assets of the group to Happy Place Investors, safeguarding the future of the brewery and the taprooms and bars in Buxton and the employment of all circa 50 members of staff who have transferred to the purchaser as part of the transaction. Happy Place Investors is backed by Middleton, who lives locally to Buxton. Middleton is the former chief executive of Media Square and ex-chairman of Hangar Seven, which The Hut Group acquired in 2017. 

Gordon Ramsay confirms Bread Street Kitchen plans for ex-Haugen site: Gordon Ramsay has confirmed he is to open a Bread Street Kitchen & Bar on the former Haugen site in London’s Stratford. Propel revealed last month that Ramsay was set to open on the site at Stratford Cross’ landmark Pavilion building. Propel revealed last September that D&D London was to leave the site, which closed last autumn. Haugen was described as a three-story Bauhaus behemoth when it opened in 2021 with capacity for 500 diners. The 10,000 square-foot space will now house the sixth London opening under Ramsay’s Bread Street Kitchen & Bar brand, with an opening scheduled for Monday, 3 June after a deal was agreed with landlord, Lendlease. Spanning all three levels of Stratford Cross’ Pavilion, the new site will operate daily for lunch and dinner, with additional areas available for private dining and events, alongside a community workspace within the ground floor café, serving coffee and pastries from 8am Monday to Friday. It will also house a 3,000 square-foot rooftop bar offering alfresco dining with views across the Queen Elizabeth Olympic Park and East Bank Cultural quarter, and on the ground floor there will be an additional 30-seater outside terrace. Andy Wenlock, chief executive of Gordon Ramsay Restaurants, said: “The bold vision for Stratford Cross is what initially attracted Gordon and I to the destination. Spending time within its energetic, creative neighbourhood and inclusive community, there is no doubt it is an ideal home for us. The jewel in Stratford Cross’ crown is certainly the Pavilion building, creating a striking location for a new flagship Bread Street Kitchen & Bar.” Nash Bond, CF Commercial and Shelley Sandzer acted on the deal. 

Zambrero doubles up in Birmingham: Zambrero, Australia’s largest Mexican quick-service franchise, which received £143m in equity financing to open more restaurants in Britain and Ireland last year, has opened its second site in Birmingham. As revealed by Propel earlier this year, the company, which already has a branch in the city, in Colmore Row, has opened in The Bullring scheme’s middle level. The 580 square-foot site offers “relaxed dining” and a “feel good Mex” menu including superfood ingredients and “fusion flavours”. It also promises to donate a meal to someone in need through Rise Against Hunger every time a burrito or bowl is bought as part of its Plant 4 Plate initiative. Emily Teh, chief executive at Zambrero UK, said: “We're thrilled to be opening in the Bullring, which is such a vibrant destination in the heart of Birmingham and are looking forward to being a part of the local community.” Zambrero recently further strengthened its presence in London with an opening in Battersea. The company, which operates circa 250 sites worldwide, opened a site in St John’s Road, its seventh site to open in the capital. Last month, Propel reported that Zambrero was lining up a second site in Manchester, after applying to open at the former Royal British Legion shop in Cross Street. Last year, Zambrero opened at a site formerly occupied by food-to-go retailer Greggs in Piccadilly Gardens, Manchester. Zambrero opened its debut UK site in Kentish Town in 2021. The brand currently operates 12 sites in the UK, including sites in Reading and Chelmsford.

Crest Hotels acquires freehold of Tenby hotel: Privately-owned hotel group Crest Hotels has acquired the freehold of a 19th century seafront hotel in Tenby. Crest hotels has bought the 45-bedroom Imperial Hotel, which was originally constructed in 1835 as a row of terraced houses, for its ninth hotel. Directors Gurjinder and Parminder Singh said: “We are extremely proud to bring this iconic hotel into our existing portfolio and look forward to working with the team in situ to further build on its reputation and stature.” The hotel is one of 33 put to market last summer as part of the Coast & Country Hotel Collection portfolio, which is being marketed by Christie & Co. Ed Belfield, regional director in Christie & Co’s hotel team, added: “The hotels have received very strong interest to date, and a very limited number of these assets remain available.” 

Soho House Manchester still expected to open this year despite company contracted to build it going into administration: The new Soho House in Manchester is still expected to open this year despite the company contracted to build the private members’ club going into administration. ARJ Construction was the main contractor on both the £24m expansion of Mollies Hotel and the Soho House members’ club in the former Granada Studios, reports the Manchester Evening News. The Granada Studios redevelopment will also be home to a Mollie’s Motel, Bar & Diner, offering Mollie’s guests, Soho House members and the public access to a live music bar and events space on the lower ground floor, a lounge and deli bar, workspace and diner at street level and a total of 133 bedrooms designed by Soho House. In a statement, ARJ Construction said: “We regret to advise that ARJ Construction have entered administration and ceased trading on 29 April 2024, with Simon Carvill-Biggs and Sarah Cook, of FRP Advisory, being appointed as administrators.” A spokesman for the administrators said that it was anticipated ARJ would be wound up and that an alternative contractor would have to be found to complete the Soho House project in Manchester. A source told the Manchester Evening News that work on Soho House was continuing during a transitional period, with a new contractor being secured and the plans for an opening this year remain. Soho House chief executive Andrew Carnie previously said: “Bringing Soho House to other cities in the UK has always been something we've wanted to do and, as a Mancunian, I’m particularly proud to be coming to Manchester. The design team have worked hard to create a space for our members that preserves the heritage of the Granada Studios building, while introducing a rooftop pool terrace and floor to ceiling windows on the top floor. The view of the city is going to be amazing from there and I can’t wait for members to experience it.” Last month, Soho House reported that its losses rose to $46m in its first quarter (13 weeks to 31 March 2024), while UK membership numbers were up 48% in the last two years and its overall waitlist exceeded 100,000 for the first time.

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