Arc Inspirations reports ‘year of transformation’ as revenue nears £50m: Arc Inspirations, the premium bar operator, has described the 12 months to 31 March 2024 as a “transformational year for the business”, as turnover increased 16.2% to £47.4m, and adjusted Ebitda climbed 37.1%. The Manahatta, Banyan and Box operator said average site Ebitda was up 22% to more than £550,000 per site. It also reported a conversion to profit (Ebitda) of 22.9%, up from 21.4%. The 21-strong group, which is led by co-founder and chief executive Martin Wolstencroft, said its performance was boosted by the launch of four new sites – Box Brindleyplace, in Birmingham; Manahatta Newcastle; Box Nottingham; and Manahatta Sheffield. The group said these sites were selected due to their prime city centre locations – a key pillar in the company’s growth strategy – and have been trading well since opening. The company, which raised £7m earlier this year, supported by BGF and HSBC, said its performance was further bolstered by its best Christmas sales period yet. Over half of the group’s sites reported their best sales week during the week commencing 11 December 2023. Like-for-like sales for the four weeks to the end of December 2023 were up 19% compared with December 2022. Box was up 30%, Manahatta 24% and Banyan ahead 10%. The company said it was “extremely well placed to push ahead with exciting plans to further grow its presence in key UK cities”, with plans to grow to 50 sites by 2030. The group plans to open two new Manahatta sites, in Nottingham and Edinburgh, and a Box in Sheffield in 2024. Following this, the business will also launch a Manahatta in Liverpool, in early 2025 and is pursuing further site opportunities in London, Cardiff and Scotland. Propel revealed last week that Arc Inspirations is also in talks to open a Box in Edinburgh next year. On current trading, the group told Propel that it continues to perform well, “delivering impressive growth” and continues to “outperform the market”. Wolstencroft said: “Recent years have not been without challenges for the industry, yet these results indicate that we have weathered the storm, and confidence in our brands remains high, across partners, stakeholders, teams and customers. As a business, we care about our teams and customers, and how we can keep delivering an elevated experience in all areas. This is what keeps driving us on and as a result, we are seeing some fantastic performances. All of our sites are trading ahead of the market, and we are confident this trend will continue as we open new sites in more key locations. Our performance is a great testament to the work our teams have put in striving to deliver a best-in-class customer experience, resulting in our highest ever net promoter score of 81, and also retaining and motivating our best people, with team turnover the lowest it has ever been. It really has been a very rewarding year on all fronts, which I am delighted with.” The business said that major refurbishments are planned for Manahatta in Manchester and Leeds next year. 

 

Host of operators to attend Talent and Training Conference: Large numbers of operators have booked places for next month’s Talent and Training Conference. The all-day conference takes place on Tuesday, 1 October at One Moorgate Place in London. It will focus on creating a company culture that attracts and retains great members of staff. Also new for this year are “parallel sessions”, which offer the chance to deep dive into specialist subjects. Among the operators attending are: KFC UK & Ireland, Fuller’s, Stonegate, Hawksmoor, The Big Table Group, Burger King, Loungers, The New World Trading Company, Nando’s, The Alchemist, Drake & Morgan, Wahaca, Caffѐ Nero, Revolution Bars Group, The Cornish Bakery, Jeremy King Restaurants, Frederic Robinson, Honest Burgers, Individual Restaurants, Sodexo, IHG Hotels & Resorts, Mollies, Korero, Bear Coffee, The Sababah Group, Turtle Bay, Flat Iron, ETM, Rosa’s Thai, WatchHouse, Mowgli, Caravan Restaurants, Incipio Group, Liberation Group, Breakspear, Simmons Bars, Buns from Home, Parkdean Resorts, Old Spike Roastery, Comptoir Group, Premier Inn, Popeyes UK, Inn Collection Group, Greene King, Oakman Group, Wagamama, Signature Group, Harts Group, Anglian Country Inns, Professionals at Play, Welcome Break, Big Fang Collective, MyLahore, Innventure, Laine Pub Company, Kerb, Toca Social, Gail's, Roseacre Pub Company, F1 Arcade, Everards, Chilled Pubs, McManus Pub Co, Wildwood, Fazenda, Wetherby Whaler, McMullen & Sons, Iberica Restaurants, Immersive Gamebox, SFG Club, Fitzbillies, Almond Family Pubs, Windsor & Eton Brewery, Rhode Island Coffee, HB Leisure, Frontier Pubs, True North Brew and The Coastal Kitchen Family. For the full speaker schedule, click here. Tickets are £345 plus VAT for operators and £395 plus VAT for suppliers. Premium Club members get a 20% discount. Email: kai.kirkman@propelinfo.com to book places. 

Next Who’s Who of UK Hospitality to be released on Friday featuring 878 companies: The next Who’s Who of UK Hospitality will be released to Premium Club members on Friday (20 September), at midday. Another seven companies have been added to the database, which now features 878 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 also receive access to five other databases: the Multi-Site Database, 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 the Talent and Training Conference (1 October), Restaurant Marketer and Innovator (two days in January 2025) and Excellence in Pub Retail (May 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 eases as fast-food achieves price growth: Foodservice inflation is easing as the fast-food sector achieves price growth, according to the latest analysis from Meaningful Vision. In July, the provider of data to the UK foodservice industry reported the decline of menu prices growth compared with the previous months. However, it said this impact has not been consistent across segments, with fast-food restaurants still maintaining higher price growth to their menus, while casual dining restaurants have maintained a more restrained approach. While the rate of price increases in the fast-food sector has substantially slowed in 2024, dropping from a peak of 14% to 5% in July, fast-food inflation still outpaces the overall food price inflation rate, which stands at 1.5%, according to the analysis. In contrast, casual dining restaurants have managed to keep their price increases to a more modest 3%, and while there is some variation among different subsegments (such as Italian and ethnic casual dining), the overall trend is one of more moderate price increases, it added. “The intense competition within the industry has made it difficult for brands to pass on significant price increases to consumers”, said Meaningful Vision chief executive, Maria Vanifatova. “Additionally, as consumers become increasingly price-sensitive, fast-food restaurants have been cautious about alienating customers with excessive price hikes. There are several explanations as to how and why casual dining restaurants maintain a lower pricing growth. One key factor is higher menu flexibility, allowing casual dining restaurants to adjust their offerings to accommodate variable costs. Additionally, casual dining restaurants have fewer promotional opportunities compared with fast food, which contribute to the ability for them to keep core menu price increases at a slightly higher level.”

 

Only A Pavement Away launches at-home dining initiative in partnership with Tom Aikens: Only A Pavement Away, the industry charity helping those facing or at risk of homelessness find employment in the hospitality sector, has launched an at-home dining initiative in partnership with Tom Aikens. Chef and patron of the charity, Aikens has collaborated with Jamie Barber and Myleene Klass, founders of restaurant quality meal kit service My Supper Hero, to create Cook & Dine at Home. The new range features signature dishes that will be delivered nationwide and can be cooked at home, with Only A Pavement Away receiving a majority of the profits. Aikens said: “I’m always looking for new initiatives to raise funds for Only A Pavement Away. This is a fantastic opportunity to enjoy deliciously prepared meals at home that are big on taste and fun, but with zero hassle.” Barber added: “Myleene and I started My Supper Hero with a mission to help people eat brilliantly at home by sending restaurant quality meals throughout the UK that people can cook at home with less than ten minutes of effort. Tom’s meals are among the best that we have, and I’m delighted that we are also helping support such a great charity.”

 

Hilton Hotels looks to recruit the over-50s: Hilton Hotels is targeting over-50s “quiet quitters” to fill 160 job vacancies in London. The hotel brand believes there is growing number of middle-aged employees who want to swap their current profession for a role in the travel industry. Multiple factors including burn out from their current jobs and children flying the nest have been credited for the over-50s desire for a career shake-up. Research also suggested a new career is viewed as an opportunity for this generation to travel more. So called “quiet quitters” are burnt out employees who show minimum effort or excitement in their current role.

 

Job of the day: COREcruitment is working with a luxury hospitality group that operates sites in and around Oxford that is seeking a head of finance. A COREcruitment spokesperson said: “The role will oversee two management accountants; and guide, support, and interpret the company's financial direction, ensuring its long-term financial health and success. Reporting directly to the owner and managing director, the position will be responsible for all aspects of financial activity. This includes accounting, reporting, process improvement, audit preparation (both external and internal), budgeting, and forecasting. The group is looking for candidates who have extensive career experience in finance and hospitality. The successful candidate must come from a luxury hospitality background.” The salary is up to £80,000 and the position is based in Oxford. For more information, email fabian@corecruitment.com.

 

Promoted content – meet Eman, the founder of Bisan Bites who is proudly bringing Palestinian flavours to London’s streets: In 2022, Eman embarked on a journey to bring the authentic taste of Palestinian cuisine to the vibrant street food scene of London. Seeking guidance from the Streets Ahead programme, she transformed her passion into reality, creating Bisan Bites – a culinary venture celebrating the rich flavours of her heritage. To find out more, click here.

Snowflake Gelato teams up with Skyview Brands Group for nationwide expansion: London premium gelato brand Snowflake has signed a partnership agreement with Skyview Brands Group, a franchisee for Sides, the food business from YouTube collective Sidemen, to roll out up to 20 new locations over the next three years, Propel has learned. Founded in 2012 by Asad Khan, Snowflake currently operates six sites in London, plus sites in Manchester, Sheffield, Saudi Arabia and Qatar. Following its recent launch at the Trafford Centre in Manchester, Snowflake said the new partnership with Skyview Brands Group, which is led by Faisal Butt, had identified key locations for the next phase of its expansion. Khan said: “This is a landmark moment for Snowflake within our journey. Opening three locations within the Trafford Centre was just the start of our UK expansion. Thanks to Faisal and his team at Skyview Brands Group, who bring a lot of expertise within the retail space, we can achieve our dream of serving happiness up and down the UK.” The partnership opened a new kiosk site in Sheffield, in the Upper Arcade at the Meadowhall shopping centre, earlier this month. Butt said: “We are delighted to have partnered with Snowflake and opened our first kiosk, in Meadowhall Sheffield. Asad and his team have carefully and discerningly crafted a fantastic brand and product and we look forward to rolling kiosks and stores out across the UK.” Khan told Propel last year that Snowflake is aiming to grow to 160 sites in the next five years, with a strategy for international expansion focused on the Middle East and Far East before turning its attention to Canada and the US.

 

Professionals at Play – there’s a fight for trade but we’ve built an adaptable model, gaming as percentage of business more than doubled over last five years: Professionals at Play co-founder Matt Jones has said that in a rapidly growing competitive socialising market, there’s “a fight for trade”, but believes building an adaptable model will help his business stay relevant. Professionals at Play was founded this summer as a parent company for former Roxy Leisure concepts, Roxy Lanes and Roxy Ballroom, and its new King Pins and Star Pins concepts. Speaking at this month’s Propel Multi-Club Conference, Jones said: “There are a lot of people coming into the market. Over the last 12 months, there have been 60 tech dart oches put into one city, in Liverpool. Where is everyone going to get these customers from? There is not 60 times more demand for this product, so there is a fight for trade. Luckily, we’ve built an adaptable model, so when things fall out of trend, we can, for example, take out ping pong tables and put some tech shuffleboard in. Gaming was 16.4% of our business in 2019 and is now 35.72%. Our margins are also up from 56.19% to 62.78% as games are pure profit.” Other challenges Jones said the business faces include a decline in drinking and the increasing ease of putting gaming into other venues. “We are a bar-led business but are finding a decline generally in people drinking,” he said. “This is combatted by us selling more gaming, so as a business, we’re becoming less bar-orientated and more games focused. Games are also becoming more readily available for non-competitive socialising businesses, which may tip the scale sometimes for someone staying local and not coming into the city centre.” The launches of King Pins last year and Star Pins later this year further illustrate Professional at Play’s adaptability and innovation, chief operating officer Colin Sadler said. He added: “The key difference between King Pins and some of our competitors is, being multi format, we can encourage our customers to increase their dwell time,” he added. “We’ve seen great success with our King Pins format, but there’s more to come. In the shopping centre space, there are a lot of empty units out there, and one of our key strengths is our units are upward of 15,000 square feet, and there’s not many operators working in that space. We’re launching Star Pins in December, which will be more value than King Pins. It also gives us the opportunity to innovate and try different things without influencing the King Pins concept.” Jones and Warren were among the speakers at this month’s Propel Multi-Club Conference. Their video and the 12 others from the conference will be made available to Premium Club members on Friday, 27 September, at 9am. 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 a supplier. Email kai.kirkman@propelinfo.com today to sign up.

Sourdough Sophia raises a further £500,000 as it eyes ten sites by end of 2027: Sourdough Sophia, the London micro bakery concept, has raised a further £500,000 through crowdfunding, as its eyes growing its current two-strong business to ten sites by the end of 2027. Founded by Sophia Handschuh and Jesse Sutton-Jones in Crouch End, the business, which last summer raised £500,000 through a crowdfunding campaign, opened its second site earlier this year at 117-119 Essex Road, Islington. With the latest fundraising, which gave the business a pre-money valuation of £4m, the company plans to open three more sites by FY25, with an annual turnover projected to be £4m. It said that revenue FY24 is £1.8m from two stores and one central production unit. It plans to have ten stores and two central production units by FY27, with a projected revenue of £8m-plus, and a £20m-plus valuation. The expansion will be made up of a mixture of larger sites with indoor seating and smaller, hatch-style kiosk sites that offer takeaway only. The company said it has achieved record-breaking growth of 247% this year. “Real bread was part of my upbringing,” Handschuh said. “My dad’s a baker and from a young age, he taught me how to bake bread with just flour, water and salt – no additives or nasties. When I moved to London I couldn’t find any real bread in my local community and was astonished by how little everyone knew about the benefits of sourdough bread. We set up Sourdough Sophia Crouch End in 2020 and in 2024 we opened our new Islington branch. We’re now running two bakeries, a central production unit and an annual turnover of nearly £2m; and we are just getting started.” Harry Stoakes, equity partner at BDO, has joined the business as a non-executive director, while Steven Rimmer, ex-senior independent director at Seedrs, is an advisor to the company. Handschuh will be one of the Ones to Watch at the final Propel Multi-Club Conference of 2024, which takes place on Wednesday, 30 October at the Millennium Gloucester Hotel in London Kensington. For the full speaker schedule, click here. Operators can book up to three free places per company while Premium Club members who are operators can book up to four free places. To book, email kai.kirkman@propelinfo.com.

 

Neat Burger CEO steps down, New York and Dubai sites shuttered: Doubts have been raised about the future of Neat Burger, the Lewis Hamilton and Leonardo DiCaprio-backed plant-based brand, which earlier this year rebranded as Neat, after the departure of its chief executive and the closure of two of its international sites. Propel has learned that Zack Bishti, chief executive and co-founder of the business, has left the company he founded in 2019 with Stasi Nychas and Tommaso Chiabra. The latter, who is an Italian-born entrepreneur who previously founded Royal Yacht International in 2011, remains a director of the business, while Nychas stepped down as chief operating officer of the company in the spring. The business grew to eight sites in London, plus sites in New York, Dubai and Milan. Last November, Neat Burger announced it was to close half of its eight-strong UK estate after seeing a “shift towards hybrid-work, leading to a natural decrease in footfall at some of our larger restaurants”. It subsequently closed its sites in Liverpool Street, Canary Wharf, Oxford Street and Westfield Stratford, leaving it with sites in Camden, Soho, Victoria and Wembley. It subsequently said it was taking the first step in its brand evolution by rebranding as “Neat”, as it looks to evolve from “the occasional to the everyday”. It has now shuttered the sites in Dubai and New York, while Propel understands that the site at 36 Buckingham Palace Road, in London’s Victoria, has been on the market. 

 

Big Table Group launches new brand proposition pilot in select Frankie & Benny’s sites: Big Table Group – the Bella Italia, Banana Tree and Las Iguanas operator –, has launched the pilot of a new brand proposition for Frankie & Benny’s in three sites across England. Big Table Group, which acquired Frankie & Benny’s last year as part of the deal for The Restaurant Group’s leisure division, has launched the pilot in the sites in Newcastle, London’s The Strand and Bristol’s Cribbs Causeway. The pilot will also include the trial of a new brunch offer for the brand. Talking to Propel in July, Big Table Group chief executive Alan Morgan said: “Some of the early feedback from when we first bought Frankie & Benny’s was that we needed to major a little bit more on some of the New York elements. Some of that lends itself a little bit more to all-day trading and a strong brunch offer. We don’t expect brunch alone to be a huge sales lever, but leaning more into the New York proposition allows us to add products that sit between breakfast and lunch, which means we have a stronger offer to capture guests late morning/11am rather than lunch service starting at 12pm. We are going to try it in three different sites just to see what the appetite is, testing in our main location types of leisure, city and town/high street, and we’ll see what happens. We’ll be putting a few things on the menu that we can talk a little bit more about and remind guest that we’re open to trade all day, so it will be more of a subconscious proposition message that just brings Frankie’s to the front of mind a little bit more. New York Italian is growing faster than it’s ever grown before, but no one thinks of Frankie & Benny’s as New York Italian. The biggest response you get when you ask guests about Frankie & Benny’s is: are they still open? Not surprising, given the number of closures post-pandemic, so for us, there is certainly an awareness piece to do of saying yes, we are here, and actually, there is a site nearby open all day. They average significantly higher average weekly sales than the market average, so when people know Frankie’s and it’s there, they want to use it.”

 

Knoops looks to raise £5m as it targets 5,000 stores: Knoops is raising £5m in a deal that values the fast-growing business of chocolate drink cafés at £34m as it bids to open up to 5,000 stores worldwide in the next decade. The business has taken off since chief executive, William Gordon-Harris, first sipped a Ugandan, 80% cocoa hot chocolate, at a tiny café in Rye, East Sussex, in 2019. He later teamed up with the café’s German founder, Jens Knoop, to expand the brand. Knoops now has 21 shops, with a target of 300 in the UK “within a few years”, Gordon-Harris said. He added: “We will do for drinking chocolate what Starbucks and Nespresso have done for barista coffee, embedding it on the high street and at home.” Knoops’ revenue more than doubled in the year to April, from £4.3m to £9.3m. Sales at stores open for more than a year rose 29%. Underlying earnings were up 131% on a like-for-like basis, to £979,000. Knoops is opening its first overseas outlet, in Dubai, next month. “The UK is simply our test market; there’s nowhere that doesn’t suit our product,” said Gordon-Harris. “I’ve had a call from Australia, and we’re looking at South Korea, Mexico, plus China, India and America as major markets. Our global footprint will be 3,000-5,000 stores. As we are not a food preparer, scalability is much less complex for us. Our stores are extremely profitable, so we can build with sensible debt rather than huge fundraisers. Landlords are also giving us increasing capital contributions, as we improve their estates. As Knoops moves into China and America, we will start with equity-owned stores then franchise to scale. We will be a chocolate unicorn.”

Kerb CEO – we are looking into doing more sites with Ikea: Simon Mitchell, chief executive of Street food collective Kerb, has told Propel that the company is looking into doing more sites with global retailer Ikea. Earlier this year, Ingka Centres, the real estate sister company to Ikea, opened its plant-forward food-hall, Saluhall, in San Francisco, in collaboration with Kerb and Nordic chef Claus Meyer. The site hosts multiple local vendors across two floors with a spread of in-house food offers and three bars featuring local craft beer and wine. Mitchell told Propel: “The first one was supposed to go into the new Ikea in Hammersmith. But in the middle of the pandemic, one day, I got a call saying, bad news, Simon, we're not doing Hammersmith. Oh, that's a shame. But we found another site, brilliant. Where is it? San Francisco. That sounded very exciting. But I can tell you, it was a lot harder work than it sounds, but it's open. It’s in the heart of San Francisco, in Market Street, in a really, really difficult area. And again, this whole ethos of Kerb of having impact, I think that's exactly what we've done. We've employed a lot of people from the local community. They have this amazing group in San Francisco called Goodwill, which takes young unemployed people and give them a pathway to employment. We've taken a lot of our team from that, and again, we've got five brilliant local vendors in that space. And actually, this food hall is huge. It's 30,000 square feet, over two floors. The first floor is all the independent street food. The ground floor is an amazing bakery, vegan burger and soft serve. And actually, the bit that’s doing really well is the first floor with the independents. That's what people want. People are seeking out this amazing independent food. So that's been really fun, and we're looking at potentially doing more of those with Ikea.”

 

Canadian pancake brand Fluffy Fluffy set for Welsh debut: Canadian pancake brand Fluffy Fluffy is set to make its Welsh debut, in Cardiff, for its ninth site. The brand, which launched in the UK in Manchester in 2022, made its London debut earlier this year with a launch at the Southside shopping centre in Wandsworth. Its other locations are in Bristol, Egham, Leeds, Leicester, Liverpool and Reading. “We are pleased to announce that Fluffy Fluffy will soon be expanding to Cardiff, Wales!” the company posted to social media. “Our signature Japanese soufflé pancakes will soon be available in the area, offering the same exceptional quality and taste you’ve come to expect. Stay tuned for our grand opening details and get ready to enjoy a premier dining experience.” Fluffy Fluffy first launched six years ago, in Toronto, and now has 22 sites across North America, plus multiple sites in Europe. The brand is aiming for 25 UK locations by the end of 2025 as it works towards an eventual estate here of 100-plus.

 

Manchester McDonald’s franchisee reports increase in turnover and profitability: Manchester McDonald’s franchisee MCD Manchester – led by Roger Khoryati and operating 11 restaurants in the city – reported an increase in turnover and profitability in the year to 31 December 2023. The company’s turnover rose from £41,107,312 in 2022 to £44,407,643 while its pre-tax profit was up from £1,382,084 to £1,462,459. Dividends of £17,000 were paid (2022: £20,000). “Turnover for the year increased by 8%, with a corresponding increase in gross profit of 6.4% compared with the previous year,” Khoryati said. “During the year, food and paper costs, along with fuel and utility costs have remained high, although the company has still reported an increased profit before tax for the year of £1,462,459 compared with a profit of £1,382,084 in the previous year. Sales through digital channels, including McDelivery, mobile apps and self-order kiosks, have continued to increase during the year. However, food cost inflation during the year has been at a record high and energy costs have continued to rise, which has affected the financial performance of the company. The directors believe the trading environment in which the company operates will continue to be challenging but remain optimistic regarding future trading and are committed to continuing the company’s reinvestment programme.” Lebanese-born former insurance worker Khoryati joined McDonald’s as a trainee business manager in 1990, and nine years later was one of 25 staff members offered the chance to own their own restaurant, remortgaging his house to raise the £200,000 to open his first branch in Wandsworth, south London.

 

Massarella in discussions to open new sites as it reports turnover boost despite being forced to shut ten restaurants following collapse of retail partner: Massarella Catering Group, a family-run company that traces its origins to an ice cream business founded in 1864 by Italian émigrés to Sheffield, has said it in discussions to open new sites as it reported a boost in turnover despite being forced to shut ten outlets when one of its retail partners collapsed. Following the closure of the Massarella Restaurants sites, the company now operates five sites under the concept. The group, which employs circa 700 staff, also operates seven Caffe Ori sites within John Lewis stores. Despite the closures, turnover at Massarella Catering Group increased to £21,614,797 for the year ending 31 December 2023 compared with £19,823,078 the previous year. However, revenue remained below the £28,588,658 reported for the year ending 31 December 2019 – the last full year before the covid pandemic. Ebitda was down to £1,315,537 from £1,391,315 the year before. Pre-tax profit fell to £702,871 from £792,379 the previous year. During the period, the company repaid the £1,800,000 it had borrowed through the Coronavirus Business Interruption Loan Scheme. In their report accompanying the accounts, the directors stated: “The failure of one retail client did affect the overall performance and eventually led to the closure of ten Massarella Restaurant sites. The company had to contend with redundancy and closure costs and the write off of assets. However, there are ongoing discussions to expand both formats. The group has positive cash flow and the reserves to expand operations without incurring debt.” A dividend of £200,000 was paid (2022: £100,000).

 

Alma Hospitality Group opens fifth site: Alma Hospitality Group has opened the fifth site in London under its eponymous café concept. The business, which is led by Baha Sadigli, has opened in King’s Cross at 180C York Way. The concept, which opened in Northcote Road, Battersea, earlier this year, offers brunch, fresh juice, lunch and speciality coffee. Sadigli said: “This marks a new chapter for us as we bring our signature brunch, specialty coffee, and healthy lunches to one of London’s most vibrant and creative communities. A huge thank you to everyone involved in making this vision a reality – from our dedicated team to our loyal customers and partners. We look forward to welcoming you to Alma King's Cross and continuing to share great food, great coffee, and great experiences.” The business also operates Alma Cafés in Hammersmith, Barnes and Primrose Hill. Samuel Nassimi, of CDG Leisure, acted on the King’s Cross deal.

 

Japes eyes German expansion: Deep dish pizza concept Japes is eyeing expansion to Germany as it looks to build an overseas presence. The business, founded by Aleksandar and Jovana Aleksic, launched in London’s Soho in 2018, followed by a second site in the capital, in Greenwich, in 2023. Its first franchisee, Ajmeet Singh, opened his first Japes site, and the company’s third, last month, in the former Masala Zone site in Camden. “The UK’s highest-ranked pizza restaurant business (Japes is ranked 4.8 on Google in the UK) is coming to Germany,” said Raimond Roßleben, franchise development manager for Franchise Focus. “Pizza lovers in the UK and Germany have been looking for true Chicago-style deep dish pizza for years. Since 2018, their wishes have been fulfilled. With branches in London’s Soho, Greenwich and Camden (with more on the way), now is the time to be part of this fresh and unique pizza franchise opportunity, with the opportunities for high profit margins and scalability. Japes restaurants can be realised with a very fair investment of approximately €150,000 and a size of about 200 square-metres, in high-frequency locations, malls and main train stations.” Aleksandar Aleksic told Propel in March that the concept “can definitely open more than 50 locations in the UK”.

 

Former head of operations for Five Guys and Shake Shack in UAE returns to UK to launch guest house business: Gary Turnbull, former head of operations for Five Guys and Shake Shack in the UAE, has returned to the UK to launch a guest house business. Turnbull started out as an operations consultant for eight McDonald’s restaurant in the north east of Scotland before moving to the Middle East in 2010 for 13 years. He started out heading up operations for Shake Shack in the UAE and Qatar for three years before spending a year as operations manager for Dubai street food brand Just Falafel. Six years at Rise LLC followed, where as head of operations, he was responsible for the roll out and operations of Five Guys franchises in the UAE. He then spent three years with Dubai multi-brand operator Yolk Brands, first as chief operating officer of its Pickl better burger brand, and then performing the same role for the group as a whole. He is now back in Scotland as managing director of CMT Hospitality, having acquired Craigatin House in Pitlochry. “After what can only be described as an epic life-changing 13 years of my life, I’ve taken the tough decision to hang up my spatula and leave the Middle East and return to Scotland and purchase a guest house,” Turnbull said. “Over the last 13 years, I have had the immense pleasure to work with some of the best in the business and I will be eternally grateful for everyone taking a chance on a boy from Scotland.” Craigatin House was previously acquired by Lynne and John Fordyce in 2019, following 12 years under the ownership of Martin and Andrea Anderson.

 

North east operator sells lease of Newcastle bar and live music venue to concentrate on café business: North east operator Warren Thomson has sold the lease of his bar and live music venue, Hoochie Coochie, in Newcastle city centre to concentrate on his café business. Opened in 2011, Hoochie Coochie is an award-winning venue in Pilgrim Street. Now, a team involving Tyneside tech entrepreneur Mike O’Brien and led by north east businessman Michael Lavery has taken over the free-of-tie lease at the bar. Thomson said: “Over the past 13 years, we have hosted more than 1,000 gigs, with local national and international musicians right up to Grammy winners. The business and reputation mean an awful lot to me, so to be handing over to friends, musicians and customers gives me the greatest pleasure and I am confident in their ability to carry it forward. Meanwhile, I’ll be slowing down a little and building our little cafe business, The Hooch on the Quayside.” Lavery added: “As live music fans and ambitious north east-based investors who have built successful global businesses in other sectors, we are very excited to take on this landmark premises and to secure its future as a high quality and inclusive live music venue. We want to build on the legacy of Warren and his team and invest in the venue as an important cultural institution for the city, and we have plans to work closely with our partners and customers to take the venue to the next level.” Christie & Co acted on the deal.

 

Edinburgh-born sommelier to open debut venture: Edinburgh-born sommelier James Clark, who has worked at restaurants in the city including Divino Enoteca and The Palmerston, is opening his debut venture. Clark will launch Sotto in the Stockbridge area of Edinburgh on Friday, 4 October. Sotto takes its name from the Italian for “under”, referencing the wine cellar hidden under Stockbridge high street that will store its extensive collection. Set over two floors, Sotto will comprise an upstairs enoteca (wine bar) and a downstairs trattoria led by Calabrian head chef Francesco Ascrizzi, who brings experience working at Italian restaurants in Edinburgh, including Divino Enoteca, Mono and Tipo. Sotto’s food menu will combine seasonal British produce with classical Italian cookery, with dishes changing regularly. The restaurant will seat 36 downstairs, including a private dining room for up to eight guests. At the upstairs wine bar that will seat 25 people, guests will be able to enjoy bottles from Sotto’s cellar – with many poured by the glass – as well as coffee, aperitivi, cocktails and light snacks. Guests will be able to purchase wine to take away, as well as a range of homemade pickles and chutneys under the label Sott’Olio and a small, curated selection of Italian pantry goods. Clark said: “I’ve fallen in love with Italian food, wine and culture over the last decade. There’s such variety in the food, wine and landscapes, and we can’t wait to share our interpretation of that with the people of Edinburgh.”

 

New independent pasta-based restaurant opens in Berkshire: A new independent pasta-based restaurant has opened in Berkshire. Gourmet Pasta Co, which has opened at 34 Market Place in Newbury, is a first hospitality venture for owner Hugo Lesser, who was inspired to explore Italian cuisine with a South American twist while living in Argentina. The menu features dishes such as green ravioli filled with spinach and ricotta with a sage butter sauce; pink sorrentinos filled with roasted butternut squash and almonds and an orange butter sauce; and black sorrentinos filled with salmon and prawn with a tomato, cream and vodka sauce. There is also a range of wine and beer, while pasta and sauces can be ordered to take away, either cooked or frozen. The restaurant is also offering monthly pasta-making classes and jazz nights featuring local musicians.