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Fri 27th Sep 2024 - Former Pret CEO Clive Schlee to take the helm at Itsu |
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Former Pret CEO Clive Schlee to take the helm at Itsu: Clive Schlee, the former chief executive of Pret A Manger, is to become the new chief executive of Itsu’s circa 80-strong restaurant business with effect from the beginning of November. Schlee, who stepped down as chief executive of Pret in September 2019 after 16 years in the role, has been involved with Itsu since its early days and has chaired the company since 2017. Schlee replaces Jason Cotta, who has decided he wishes to leave Itsu to take up another position later this year. Itsu appointed Cotta, formerly of Ole & Steen and Costa Coffee, as its first chief growth officer, at the end of last year. Cotta, the former managing director UK and Ireland for Costa Coffee, was previously group chief executive of Ole & Steen. He has also held senior executive positions at Travelodge and TGI Fridays. Itsu founder Julian Metcalfe said: “Clive and I worked together at Pret for many years and achieved great success for our management and teams. Clive has a unique understanding of culture and the role played by the passion and commitment of our employees. Jason leaves as a great supporter of Itsu and he has our best wishes for the future.” Earlier this month, Itsu reported it had seen “solid” growth in 2024 as it said group turnover increased to a record £161m for the year ending 31 December 2023 (2022: £101.2m) “with healthy sales growth across both restaurant and grocery businesses”. Group Ebitda was up 24% to £8.1m compared with last year, “despite rising costs and ongoing investment in people, healthier innovation and future growth”. Restaurant sales in 2023 grew to £116m. More than a quarter of the estate broke individual sales records, including Aldgate, St Mary Axe, The Strand and Piccadilly in Central London, Gatwick and Heathrow airports and suburban locations such as Wimbledon in south west London. Itsu’s grocery business delivered double-digit sales growth for its tenth consecutive year. A further 27 new products launched across chilled, ambient and frozen categories throughout the year. In July 2024, Itsu completed an upsizing of existing cash facilities to £30m with baking partner HSBC, “setting the business up to deliver ambitious growth plans”. Metcalfe said: “Never before have customers around the world so wanted, and needed, healthier convenient food at home, and when out and about. Over the last 12 months, we’ve also signed iconic sites in London’s Bishopsgate, Manchester’s Trafford Centre, Windsor, Amsterdam’s Schiphol airport and dozens more. The [grocery] dishes you’ll see in supermarket chillers this autumn are the result of decades of learning. Itsu has been innovating and evolving for 20 years; there’s so much more to do, we’re only just beginning.” In July, Itsu, which is understood to have 15 sites in its immediate pipeline, reiterated its ambition to double its existing 80-strong UK estate. Itsu features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 978 companies. Itsu’s turnover of £161m is the 70th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.
Four 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 four 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. Attendees will hear how businesses are developing their teams, dealing with talent shortages and keeping their staff energised. Also new for this year are “parallel sessions”, which offer the chance to deep dive into specialist subjects. 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.
Crown Estate challenges Cineworld in court over restructuring plan: The Crown Estate has begun a legal battle with Cineworld over claims that the cinema brand is acting unfairly by forcing through sweeping cuts to its rental bills to stay afloat. The Crown Estate – which runs the King’s estate, including the sites of three Cineworld cinemas – has lodged a legal challenge against the cinema group’s restructuring plan, which was voted through earlier this week, reports The Telegraph. In the challenge, which was made alongside fellow Cineworld landlord Tritax, the Crown Estate claims the cinema company’s radical plans to cut the amount of rent it pays to landlords went against earlier pledges over leases. The case centres on Cineworld securing rent reductions last year by promising it would protect leases on certain sites, including those run by the Crown Estate. Those sites are now among those facing sweeping cuts under Cineworld’s survival plan, which it has said is necessary to avoid collapse. Cineworld initially was forced to file for bankruptcy protection in the US in 2022 amid spiralling debts and weaker audience numbers in the wake of the pandemic. Last year, following a share price collapse in London, Cineworld delisted from the London stock market. It was taken over by lenders in a debt-for-equity swap. However, it has remained under pressure and earlier this year warned it was facing steep payments which it would be unable to make, including millions of pounds worth of rent. Yesterday (Thursday, 26 September), lawyers for Cineworld said they needed to restructure the UK business in order to get more cash from its US owner. Tom Smith, a barrister for Cineworld, said: “The UK part of the group is presently unprofitable. Cineworld would collapse into administration without fresh funding from its owner. There is no prospect of raising the money from anywhere else.” A judgment on the case is expected on Monday (30 September).
Leonardo Hotels significantly reduces losses as turnover climbs to record £336.5m, expects to generate positive Ebitda in 2024: Leonardo Hotels has significantly reduced its pre-tax losses by more than £50m during the last financial year, buoyed by the ongoing recovery of the market post-pandemic, and said it expects to generate positive Ebitda in 2024. The group posted a pre-tax loss of £3,755,000 for the year ending 31 December 2023 – down from the £58,079,000 the previous year. Leonardo Hotels also saw its turnover climb to a record £336,544,000 from £290,287,000 the year before due to “improving market conditions”. No new sites opened during the year. In their report accompanying the accounts, the directors stated: “Revenue forecasts are strong and most recent forecasts suggest the company will be generating a positive Ebitda in 2024. Also the rebranding of the hotels from Jurys Inn to Leonardos was an event that took time to embed with the nation, however brand awareness has grown and this brings growth opportunities. The company also entered into management agreements to manage two additional hotels in 2023; these two hotels are owned by a related party but certain services are provide under a management agreement. The directors are confident that taking this into consideration along with the continued tight cost controls in place, the future of the company will show increasing growth in future years.” Leonardo Hotels, which operates 55 sites in the UK and Ireland and employs around 3,400 staff, was founded by David Fattal who built a fortune of around $1.3bn after setting up his hotel brand in 1998. The company is the largest brand in Fattal’s native Israel.
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