Dishoom posts strong growth in FY23 with revenue up 23% to £116.8m, achieves B Corp status: Dishoom, the Indian restaurant group, reported a strong period of growth in its most recent financial year, with revenue up 23% to £116.8m in the 12 months to 31 December 2023. The company said its performance came on the back of strong like-for-like growth at existing restaurants and the contribution of new openings, including the launch of its all-day bar-café concept Permit Room in Brighton and a new Dishoom at Battersea Power Station. The results – reflecting the first time the current 12-month period and prior comparable year were both unaffected directly by covid 19 – included significant growth in adjusted underlying profits (Ebitda), up 41.9% to £13.3m. The company said despite the challenging inflationary environment, it delivered a 1.5 percentage point gain in adjusted Ebitda margin as it continued to “generate efficiencies through scale”. The group said it had continued to “perform well” since the year-end, delivering ongoing growth at both a revenue and underlying profit level. A new Permit Room has since opened in Cambridge and a third is set to launch in Oxford, taking the number of restaurants operated by the group to 13. The business also said it was committed to maintaining its position as a leading employer in hospitality and continues to invest strongly in people development, training, well-being and engagement. Since the year-end, Dishoom has been voted in the Top 10 Sunday Times Best Places To Work. For every meal served at Dishoom, the company donates a meal to feed a child in India or the UK through its charity partner, and in the year, the group reached a total of 20 million meals donated since it was formed. Dishoom said it had also reviewed its sustainability practices across the business, resulted in the company’s first Impact Report, and recently achieved B Corp status, an accreditation for businesses committed to positive social impact. Co-founder Shamil Thakrar said: “These results reflect the incredible work of our team. Even more important than growth is keeping our focus strongly on hospitality and making sure Dishoom is one of the very best workplaces in hospitality. As a business, we continue to work ever harder to provide wonderful opportunities for our people to grow and develop. This has been absolutely critical to our current success and will be to our future development. We also plan to continue to grow the business very selectively, through seeking the right new opportunities for both Dishoom and Dishoom Permit Rooms.” 

 

Sponsored message – Santa Maria launches new range of mainstream Korean sauces, seasonings and pastes: Santa Maria has launched its new range of mainstream Korean sauces, seasonings and pastes. The new, easy-to-use and versatile range “captures the essence of K-food”, enabling chefs to easily unlock Korean dishes. Suitable across all dayparts, the products are designed for out-of-home operators as well as contract caterers in both education and workplace sectors. Santa Maria’s new K-food range comprises five mainstream products: a Black Pepper Soy Sauce, a Fermented Chili Sauce, a Fermented Soy & Chili Paste, a Chili & Sesame Seasoning, and a Kimchi Paste Chili & Garlic. The product range is vegan and lactose-free. A spokesperson said: “Each product has been carefully crafted to deliver the rich, complex taste that Korean cuisine is loved for, making it easier than ever for chefs and caterers to bring this trending cuisine to life. Whether it’s adding a Korean twist to already-loved dishes such as Santa Maria’s Korean Fusion ‘Seoul Chicken Burger’ recipe or refreshing the menu with Santa Maria’s Korean Classic ‘Sirloin Steak Bibimbap’ recipe, the new range is sure to excite customers, drive footfall and secure repeat business.” The new Korean products are available via Santa Maria from national wholesalers. To explore the full range, click here. If you have a sponsored story you would like to see featured in this newsletter position, email paul.charity@propelinfo.com.

 

Seven days to go until Propel’s Talent & Training Conference with focus on how companies can build a culture to attract, develop and retain talent: There are seven days to go until Propel’s Talent & Training Conference. The all-day conference takes place on Tuesday, 1 October at One Moorgate Place in London and is open for bookings. The conference will showcase examples of outstanding people culture among companies within the sector and how the industry is attracting talent. 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, Caffe 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.

 

Sector lawyer David Roberts – investors now basing valuations on company’s last 12 months’ trading rather than multiples of Ebitda, expect more ‘static big beast’ operators to become platforms: David Roberts, head of leisure at global law firm CMS, has said investors are now tending to look at a company’s last 12 months’ trading rather than a multiple of Ebitda when valuing a business. Roberts identified four types of company – distressed, static, newbies and grown-ups. Speaking at this month’s Propel Multi-Club Conference, he said: “During the last ‘boom’ (post-2008), the aim was to have a valuation of ten times Ebitda, but that was at a time when interest rates were 0.1%. Now the cost of borrowing is multiple times higher, I think that multiple will go down to 7.5 times to eight times. However, I think ‘grown-ups’ are still in the market to demand ten times. If companies want to keep that valuation, then expect much more financial gearing in the way investors seek to invest, such as using complex loan notes with coupons and preferences and all sorts of other interesting financial instruments to try to get their returns. What we are seeing in the market at the moment is rather than giving you a multiple of Ebitda, they are looking at the last 12 months of trading. Rather than a run rate look forward, if you’re doing a transaction half way through the year, investors will say ‘let’s look at the last 12 months trading as we think that’s a much more realistic indication of how the business is doing’.” Roberts said while competitive socialising is “untested” in the deals market, he believes those concepts are still finding it easier than most to raise capital because the economics of those businesses are “another level – even better than hotels”. Roberts – who advises the founders of industry businesses including Hawksmoor, Mowgli, Incipio and Clays and sector investors such as White Rabbit, Piper and TDR Capital – also said he expects more what he called “static big beast” operators to become platforms. He said: “Interestingly, there’s a lot of alternative parties in the market rather than just traditional investors with family offices and platforms such as Azzurri and White Rabbit. There are some big beast operators that I think are too big to fail but also too big to sell, what I call static companies. The problem with a static company is everyone is getting paid still but no value is being created for stakeholders or founders. They need to do something different. I think they will probably become platforms. They’ve got all the experience, they’ve got a huge property portfolio, and I think companies like this will start acquiring smaller groups and rebadging their existing sites, using their management expertise to grow new concepts, and we are starting to see evidence of that.” Roberts was among the speakers at this month’s Propel Multi-Club Conference. His 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.

Gordon Ramsay’s Restaurant 1890 awarded 4 AA Rosettes: Gordon Ramsay’s Restaurant 1890 at The Savoy was awarded 4 AA Rosettes at the Monday night’s (23 September) AA Hospitality Awards ceremony in London. It follows Restaurant 1890 being awarded a Michelin Star in February 2024, and means it joins Restaurant Gordon Ramsay, the group’s flagship location in Chelsea, as its second 4 AA Rosette recipient. James Sharp, executive head chef at Restaurant 1890, said: “Since opening in 2022, it has been our mission to bring guests of Restaurant 1890 a totally unique experience – and the blend of seasonally exciting ingredients, a creative culinary team like no other and seamless collaboration with Gordon has made this a reality.” Sarah Rhone, general manager at Restaurant 1890, added: “I’d like to thank the amazing team at Restaurant 1890 – their hard work and dedication have been the driving force behind the restaurant’s success and this reward is a reflection of our collective efforts.”

 

Job of the day: COREcruitment is working with a restaurant group that is looking for a general manager to be part of a new high-end dining destination set to open in Central London. A COREcruitment spokesperson said: “The company is seeking a general manager with a proven track record in high-volume (£9m-plus) operations and premium dining. This role is for someone who thrives on creativity, leadership and ownership, and will be deeply involved in the opening and project management of this two-floor restaurant, including a private dining room and bar. The successful candidate will bring an entrepreneurial mindset and a passion for delivering top-tier service while maintaining the brand’s core values.” The salary is up to £120,000. For more information, email kate@corecruitment.com.

 

Exclusive – Fulham Shore co-founder and ex-MD acquires Aubaine business: Nabil Mankarious, the co-founder and former managing director of Fulham Shore, the owner of the Franco Manca and The Real Greek brands, is part of a group that has acquired Aubaine, the all-day French restaurant and bakery business, Propel has learned. Last year, global food company Toridoll Holdings Corporation and partner restaurant sector specialist fund Capdesia acquired Fulham Shore in a £93.4m deal. Mankarious stepped down as managing director of the business he had helped found and develop earlier this year. Mankarious came to the UK from Egypt in 1986 to study medicine. While a student, he started work in the kitchen of a PizzaExpress restaurant and rose through the ranks to become regional director for PizzaExpress London in 2001. From 2006 until 2011, he was head of group purchasing at The Clapham House Group and head of operations at Gourmet Burger Kitchen, its largest subsidiary company. Propel understands that Znas, a new vehicle founded by Mankarious, has acquired a majority stake in the London-based Aubaine, with plans for future growth of the business. Aubaine, which is currently led by founder Hani Nakkach, operates five sites across London, and said in March that trading in its current financial year was “above expected levels”.

 

Giggling Squid co-founder – summer trading mixed but with strong conversion, seeing quality assets become available: Andy Laurillard, co-founder of Giggling Squid, the Thai restaurant brand backed by the Business Growth Fund, has told Propel that the company’s summer trading was “mixed” but with “strong conversion”, and that it expects to exceed its budget for the half year ending in September. The 51-strong group reported restaurant turnover increased 4.3% to £76.4m for the year ending 31 March 2024, up from £73.3m in the prior year. The 51-strong group said it enjoyed “another excellent year as customer demand for Thai food remained strong throughout the year and core estate revenue continued to be materially ahead of pre pandemic levels”. Laurillard said delivery remains an important part of the brand’s sales mix and that it is “getting great results working closely with our exclusive supplier, Deliveroo”. The company opened four new restaurants in the year to the end of March, with two in Cardiff (St David’s and Mermaid Quay) and one each in Bracknell and Shrewsbury. Post period end, additional sites opened in Muswell Hill (London) and Portsmouth (Gunwharf Quays), both of which it said have outperformed expectations. Laurillard told Propel that the company had a “pretty full pipeline”, with an opening in Knowle this year, then “major openings in York, Exeter, Leeds and Liverpool next year, as well as a few smaller projects”. He added: “We are still acquiring and we are seeing some good quality assets come available.” During its last financial year, the company signed a new bank facility with Barclays, providing an additional £6m of revolving credit facility funding, taking group facilities to £22.7m.

 

Tortilla opens third UK airport site with SSP: Tortilla, Europe’s largest fast-casual Mexican restaurant brand, has opened its third airport site with SSP, the operator of food and beverage outlets in travel locations worldwide. A 30-seat restaurant has opened in the main departure lounge at Glasgow airport, creating 19 jobs. It joins Tortilla’s debut airport site, which opened at Gatwick in 2021, and at Bristol, which launched in 2022. Tortilla chief executive Andy Naylor said: “We are excited to be opening our third airport location with SSP. Glaswegians will already know our brand from our location in the city centre, but this will allow them to enjoy some of our delicious Mexican food before jetting off to their next destination.” Richard Attwood, business development director at SSP UK & Ireland, added: “We’re thrilled to be bringing Tortilla to a Scottish airport for the first time and extending our partnership with both Glasgow airport and Tortilla.”

 

Arc Inspirations invests £2.45m on Scottish debut site: Arc Inspirations, the premium bar operator, is investing £2.45m on its debut site in Scotland, which will open in Edinburgh next month. The company will open a 380 square-metre site under its New York-inspired cocktail bar concept Manahatta on Rose Street on 26 October. The company currently operates 17 bars across nine locations in the UK and 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. Last week, the business 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%.

Whitbread agrees deal to build its largest Premier Inn in the north of England: Whitbread has agreed a deal to build its largest Premier Inn in the north of England. The company has partnered with science and innovation campus Mix Manchester, located at Manchester airport’s transport interchange, to develop a new 276-bedroom hotel, which Premier Inn will occupy on a leasehold basis. It follows the company acquiring a consented freehold development site in Rochdale Road for a new 229-bedroom Premier Inn and disposing of its Deansgate Locks hotel for redevelopment into alternative uses, as it “invests heavily in Manchester” and works to “realign and grow its network of hotels in the city”. Whitbread sees a long-term potential for 125,000 Premier Inn bedrooms in the UK – an increase of 40,000 on its current trading estate of 85,500 rooms. Jill Anderson, acquisition manager for Whitbread, said: “We are serious about continuing to grow Premier Inn across the north of England, and securing what will become the largest Premier Inn in the north of England is a significant moment for Whitbread. With passenger numbers growing strongly at the airport, I’m sure it will be a popular choice for our customers.” A planning application is expected to be submitted before Christmas which, if approved, will allow construction to commence in early 2025. Whitbread currently operates three Premier Inn hotels serving the airport, the newest of which opened in 2009, and has 20-plus locations across the city. 

 

Pub portfolio let to Stonegate placed on the market: A five-strong portfolio of freehold pub investments owned by LondonMetric Property and let to Stonegate Group, the UK’s largest pub company, has been placed on the market, with a combined guide price of £8.175m, Propel has learned. The pubs, which are located in Gloucester, Kirkcaldy, Wolverhampton, Preston and Cramlington, are let to Stonegate on leases expiring in 2045 and rent reviews subject to five yearly annually compounded upwards only in line with RPI. The portfolio, which is being marketed by Savills, comprises The Abbey, Gloucester – £1,100,000 (9.1% net initial yield); the Blagdon Arms, Cramlington – £1,400,000 (9.0% net initial yield); The Exchequer, Kirkcaldy – £1,400,000 (9.9% net initial yield); The Hogshead, Wolverhampton – £2,400,000 (10.9% net initial yield); and the Slug & Lettuce, Preston – £1,875,000 (10.0% net initial yield). Last week, Propel revealed that Stonegate had placed a 20-strong portfolio of investment sites on the market, with a combined asking price of just under £19m. The business appointed Savills to market the freehold investment sites, which are spread across England – from Barnard Castle in the north east to Exeter in the south west – and have a combined guide price of £18,760,000. The pubs include Fox in Bognor Regis, West Sussex (which has a guide price of £1,480,000); the Dog & Partridge in Ascot, Berkshire (£1,000,000); the White Horse in Billericay, Essex (£1,380,000); Bedford Street in Leamington Spa, Warwickshire (£1,330,000); Angerstein Hotel in Greenwich, south east London (£1,330,000); and Planet Nollywood in London’s Camberwell (£1,160,000). The properties are considered for sale either individually or in small packages. 

 

Large scale Domino’s franchisee makes a loss but grows turnover to almost £117m: Large scale Domino’s franchisee Palico made a loss in the year to 31 December 2023 but grew its turnover to almost £117m. The Oxfordshire company, led by Harpal Singh Grewal, saw a £1,186,310 pre-tax profit in 2022 turn into a loss of £1,344,312, as costs grew by more than £8m. The company’s turnover increased from £109,029,255 in 2022 to £116,965,045. Group Ebitda was down from £10,538,279 to £7,717,595, with a reduction in gross profit margin from 24.7% to 22.8%.

 

Boojum opens in Nottingham: Mexican fast-casual brand Boojum, which was acquired by the Azzurri Group last summer, has opened in Nottingham for its second UK mainland site. Boojum has opened a 2,377 square-foot, 42-cover restaurant in the city’s Lower Parliament Street – joining the Leeds site it opened earlier this year, plus 16 more across Ireland and Northern Ireland. Boojum operations director Rob Powell said: “The reaction to our first outlet in Nottingham has been phenomenal. We’ve welcomed hundreds of customers through the doors and have had a lovely warm welcome from surrounding businesses. The feedback we’ve had so far from our Nottingham customers has been fantastic and we are really excited be open just in time to welcome all the new and returning students to the city over the coming weeks.” Earlier this month, Propel revealed that Boojum has a third UK mainland site set to open before the end of the year, in Birmingham, and has also lined up a launch in Liverpool.

 

Essex McDonald’s franchisee narrows its losses: McDonald’s franchisee CGN Restaurants, which operates ten restaurants in Essex – including five in Colchester – narrowed its losses in the year to 31 December 2023. It reported a pre-tax loss of £685,787 for the period compared with a loss of £872,200 in 2022. Turnover increased from £48,144,730 in 2022 to £52,098,148. Owner Craig Newnes said an operating loss of £385,214 (2022: £719,946) has led to a “significant reduction” in net assets, which were down from £1,167,000 in 2022 to £109,000. “The directors report that despite an improvement in turnover, significant costs pressures have led to a fall in margins and an operating loss,” he added. Dividends of £456,836 were paid (2022: £430,293). 

 

Benito’s to make motorway services debut: Benito’s, the Elangeni Hospitality Group (EHG)-owned Mexican brand, is set to make its motorway service debut next month with an opening at Leeds Skelton Lake services at junction 45 on the M1. Benito’s will occupy the vacant unit previously occupied by Tortilla at Leeds Skelton Lake, which is operated by Extra MSA and has recently welcomed M&S Food, Greggs and a 24-hour McDonald’s to its line-up. The new site will be Benito’s first in Yorkshire, with existing stores including Oxford Westgate and Luton airport. The move also signals the retailer’s expansion into the motorway services market. Mike Pearson, chief executive at Elangeni Hospitality Group, said: “We’re delighted to be working with the team at Extra MSA Group to bring our high-quality Mexican food and drink to Leeds Skelton Lakes. We’re looking forward to working with the Extra team to further enhance our presence in this pivotal market for us.” In July, Propel revealed Elangeni Hospitality Group had set out plans to open a further 12 sites under the Mexican brand over the coming 18 months, as it launched a new concept, Slice & Dice, in Oxford. The 12 new stores will be a combination of company owned and franchised operations, and Pearson said two more Benito’s stores are planned to open before the end of 2024. Pearson said the company has a “handful of ongoing conversations in play” with regards to franchising and that it was open to further roadside openings.

 

Maguro Group lines Manchester site for Bullgogi concept: Maguro Group, the company behind the Korean street food concept Bunsik, is lining up an opening in Manchester for its Korean barbecue concept, Bullgogi, Propel has learned. Maguro Group – which is also behind concepts such as Maguro Sushi, Gogi, Itaewon Burger & Chicken and Pochawa Grill – is understood to have lined up an opening in the former M&S Food unit at City Tower, in the city’s Parker Street. Director Jae Cho told Propel in July that Bullgogi could be the next concept to be franchised by the Maguro Group. He said: “We are opening the biggest Korean barbecue restaurant in the UK by the end of the year, in Manchester, which will have a simple and scalable concept.” At the time, Maguro Group told Propel it was set to expand its regional footprint as part of at least three new Bunsik openings this year after launching a franchise programme for the Korean street food concept. Propel revealed last September that the group had lined up its then four-strong Bunsik business for its first foray into franchising and had plans to grow it to 20 sites by the end of 2025. It has since opened further locations in Westfield Stratford – in the fast-food court on the lower ground floor – and at 198-200 Earl’s Court Road, with a seventh location, in London’s Chinatown, opening this month. 

 

PizzaLuxe makes permanent returns to London with Shoreditch opening: PizzaLuxe, the Paul Goodale-led premium fast casual concept, has made a permanent return to London with an opening in Shoreditch. The concept began life in 2011 as a weekend market stall in Brick Lane before growing into the north and the Midlands, with restaurants in Leeds and Manchester and travel hub locations in Peterborough and Cambridge. It made a temporary return to the capital last summer with a pop-up at 3 Henrietta Street within the Covent Garden Piazza and has now opened a new permanent restaurant at Unit 2a Principal Place in London’s Worship Street. PizzaLuxe also currently operates two Manchester sites – in the city’s airport and Arndale shopping centre – and at Leeds Trinity. At the time of opening its Covent Garden pop-up, Goodale said he planned it to be the start of a franchise-led expansion strategy. He went on to tell Propel that he is moving forward with plans to take PizzaLuze into the pub sector and is exploring international franchise opportunities, and that he is keen to more travel hub sites as his airport location “does good numbers”.

 

London high-end Japanese restaurant secures second site: London high-end Japanese restaurant concept Roji is opening a second site in the capital, Propel has learned. The concept, which is the brainchild of Tamas Naszai and Tomoko Hasegawa, has secured the premises of Greek restaurant Ino at 4 Newburgh Street after agreeing the assignment of the lease with landlord Shaftesbury. Roji also has a site in Mayfair. The restaurant in South Molton Street can host up to ten guests at a wood counter in Mayfair, offering a menu that “celebrates the fish, vegetables, fruit and meat produced by a handful of small passionate farmers”. The food is based on Japanese principles of grilling, simmering, steaming, frying and cutting, and the omakase-style menus include a sushi course which can be paired with a hand-picked selection of sake and wine. Naszai and Hasegawa met while cooking at the now closed Japanese restaurant Tokemeite in the capital. Meanwhile, Andreas Labridis and Nikos Roussos – who are also behind Greek restaurant Opso in Marylebone and seafood concept Lima in Fitzrovia – are searching for a new home for Ino. David Rawlinson, founding director of Restaurant Property, which oversaw the Soho deal, said: “More high quality tenants are asking to be in Soho now than Mayfair, due to the higher footfall and better value rents.” Hay Hill Properties acted for Roji.

 

Public House Group confirms Clerkenwell pub plans, lines up Fat Badger opening: Public House Group, the umbrella company from the team behind The Pelican in London’s Notting Hill and the Hero in Maida Vale, has confirmed it plans to reopen The Coach in London’s Clerkenwell. Last August, Propel revealed The Coach and the Hero of Maida, which is based in Maida Vale, had been acquired by the private investor behind the Public House Group in a deal believed to be valued at circa £9m. Both were previously owned by Harcourt Inns. The FT later reported that Public House Group will also reopen The Fat Badger in Golborne Road, Notting Hill. Propel understands Public House Group, which is led by Phil Winser, James Gummer and Olivier van Themsche, is backed, in part, by investment management firm BNP Capital, and is in talks on a further site in the capital. The company also operates The Bull in Charlbury, Oxfordshire. Winser told the FT: “I used to go to [The Fat Badger] a lot when I was young and working in catering and restaurants. The building’s size means there’s a lot you can do with it. This is also true of The Coach.” In terms of expansion, van Themsche said more spots in the Cotswolds are a possibility, while Winser said. “We’re just really excited about pubs. What we’re talking about could work in every neighbourhood. They serve a purpose within society and will continue to do so. The pub is not disappearing.” There are also plans for Public House Group to open a hospitality school near Charlbury. “Instead of sitting here complaining about [the crisis in hospitality], it’s important to do something to help solve it because that’s the only way we’re going to see growth,” said Winser. “People want their local pub to succeed. They want to come, spend their money and feel a sense of ownership. We are merely custodians of these buildings.”

 

Edwardian Hotels reduces its debts by more than £700m following circa £800m sale of ten hotels, returns to profit: Edwardian Hotels has reduced its debts by more than £700m following the circa £800m sale of ten of its hotels earlier this year. The company, which previously operated 12 London hotels and one in Manchester, sold its ten Raddison Blu hotels to US private equity firm Starwood Capital in January – leaving it with the Londoner hotel in Leicester Square, the May Fair in Mayfair and the Edwardian in Manchester. At the time of the sale, £284.2m of external debt transferred to the buyer; while an external loan of £231.6m was repaid along with £17m in part repayment of a fixed long-term loan, and £68.5m in in part repayment of a variable rate loan. Since then, in April 2024, a further £100m of the variable rate bank loan was also repaid. Following these repayments, group debt was reduced to £257m, of which £50m is due within one year, with “various options under consideration for restructuring this refinancing”. The group has cash balances of £92m. At 31 December 2023, the group had loans totalling £959.9m and cash balances of £151.9m. It comes after the business returned to profit in the year to 31 December 2023. A pre-tax loss of £3,648,000 turned into a profit of £1,030,000. Turnover was up from £236,742,000 to £286,594,000. No government grants were received (2022: £231,000). No dividends were paid (2022: nil). Director Vijay Wason said despite the cost-of-living crisis, demand for the group’s hotels remained strong, with increasing business travel and meeting and events demand. He said the business continues to be pressured by labour shortages and retention issues. He added: “Following the sale of certain subsidiaries on 12 January 2024, the group’s hotels and now concentrated in the luxury sector, with two hotels in central London and one in Manchester. The group’s profitability is therefore dependent on the strength of the London and Manchester hotel markets.”

 

Midlands café concept set to open fourth site and tap into evening market for first time: Midlands café concept Yorks Café is set to open its fourth site next month and tap into the evening market for the first time. Founder Simon Ford is launching the venue in the Paradise development in Birmingham city centre. Set across two floors, the outlet will open on Tuesday, 8 October. As well as its daytime offer, Yorks Cafe is launching an evening menu, with the space also serving beer, natural wine and cocktails alongside its in-house roasted coffee. Ford told Birmingham Live: “We’re on an incredibly exciting journey here at Yorks. Since 2012, our mission has been to become the best part of our customer's day through premium coffee and a globally inspired brunch offering. But now it’s time for a new chapter in the Yorks story as we become an all-day destination with a beautifully curated list of cocktails and natural wine and a new evening menu designed to share.” Yorks Cafe has three other sites – in Stephenson Street, at the Ikon Gallery in Birmingham and in Stratford-upon-Avon.

 

Caerphilly operators to open Welsh-Italian café bar for fourth site: Caerphilly operators Jonathan, Richard and Martin Rees are to open a Welsh-Italian café bar in the town for their fourth site. The brothers have taken over the lease of the former Coffi Vista site in Castle Street opposite the town’s castle. The owners of cocktail bar and event space Ten Degrees, Team Rees Gym and Jake’s Ice Cream & Co plan to create a space “inspired by the Italian cafes that brought a rich coffee culture to the Welsh valleys after the Second World War”. Rosita’s will occupy a current vacant building. Youngest brother Jonathan said one particular focus was to enhance the outdoor space surrounding the venue by creating canopied, heated seating areas. He added: “We aim to create a vibrant café-bar culture that befits a world-class attraction like the castle. Our goal is to elevate Caerphilly as a modern, thriving tourist destination. Preparations are well underway to deliver our vision for what this space can be for the people of Caerphilly.”

 

North Yorkshire operators acquire fourth site: North Yorkshire operators Alexander and Jonathan Neil have acquired a site in the Leeds suburb of Chapel Allerton for their fourth venue. The brothers have acquired The Woods through parent company Palagander. The site is set across three floors, including a heated garden seating area and rooftop balcony. Jonathan said: “We’re really excited for our future at The Woods. The much-loved bar and restaurant has been a centre of the community in Chapel Allerton for years and presents a great opportunity for us to take on our first suburban project.” Since opening their first venue, Roland’s in Leeds, ten years ago, the pair have gone on to establish the Domino Club and gin distillery Wolfe Bros in Leeds city centre, as well as Roland’s in Harrogate.

 

Maison François team opens new French-inspired café in Borough Market: The team behind Maison François in London’s Mayfair has opened its new French-inspired café in Borough Market. Restaurateur François O’Neill, who opened brasserie and wine bar Maison François at the former site of Green's Restaurant & Oyster Bar in 2020, has followed it with Café François – featuring a ground floor deli counter, rotisserie, open kitchen and dining room, plus two further dining rooms on the first floor. A French inspired menu starts with sweet and savoury patisserie, breakfast sandwiches and egg dishes, with all bread and patisserie created in the in-house bakery. Lunch and dinner dishes include crispy frog’s legs served with sauce ravigote and tartare de bouef, grilled cheeses with French onion soup, rôtisserie chicken, Vadovan curry of monkfish and whole lobster frites. There is also an international wine list from wine director Daniel Illsley, alongside a selection of cocktails.