Exclusive – Wendy’s UK turnover passes £30m: Wendy’s UK, the British arm of the third-largest quick service restaurant chain in the US, saw its turnover pass £30m in the year to 31 December 2023. Its revenue grew from £21,266,567 in 2022 to £31,916,991. The company maintained the same amount (12) of company-owned restaurants during the period (compared to six at the start of 2022) and its franchised estate grew from 17 to 24. Of the 2023 turnover, £19,582,543 came from restaurant sales (2022: £9,580,210) while £11,418,726 came from management fees for UK restaurants (2022: £9,508,210). The company’s pre-tax profit fell from £1,473,507 in 2022 to £1,255,708 as costs rose by more than £8m. The 2022 figure also included a £1m settlement from a landlord following a lease termination settlement. Average employee numbers rose from 376 in 2022 to 436. No dividends were paid (2022: nil). “Turnover during the year ended 31 December 2023 increased £10,650,424, primarily due to a higher number of company-operated restaurants in operation throughout 2023 compared with 2022,” said director Gunhter Plosch. “The company began and ended 2023 with 12 company-operated restaurants versus beginning 2022 with six company-operated restaurants. Gross profit during the year increased £2,460,027, primarily due to higher management fees for UK restaurant services. As of 31 December 2023, the company had net assets of £21,197,286 (2022: £20,342,940), which increased compared with the year ended 31 December 2022, primarily due to increases in amounts owed from debtors and finance lease receivables, partially offset by a decrease in cash.” Post year-end, in March 2024, Wendy’s signed up its fourth UK franchisee, GH Burgers, a new vehicle set up by Pizza Hut franchisee Alhassan Goussous. GH Burgers – which opened its debut site in London’s Wood Green in August before also lining up a Fulham opening – joined Wendy’s other UK franchise partners, Square Burgers, Blank Table and JRK Restaurants. Also in August, JRK lined up its fifth location, at Lakeside shopping centre, while last month, Square Burgers opened its tenth UK site, in Barlborough. Wendy’s UK has also opened several new company-owned sites post year-end and said it expects to see up to UK 50 restaurants by the end of the year, with the long-term potential for up to 400 Wendy’s restaurants here. Wendy’s UK features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 978 companies. Its turnover of £31,916,991 for the year ending 31 December 2023 is the 312th 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.

 

Manchester McDonald’s franchisee reports turnover up to record £18.6m, discovers error on delivery commission charges: McDonald’s franchisee BGJ Restaurants, which operates sites in Manchester, has reported turnover increased to a record £18,574,047 for the year ending 31 December 2023 compared with 317,894,957 the year before. Ebitda was up to £486,003 from £460,919 the previous year. Pre-tax losses fell to £98,294 from £124,185 the year before. In his report accompanying the accounts, franchisee David Russell stated: “With the increase in delivery sales, we undertook a review of the charges from the online partners and discovered the company had been undercharged commissions on these sales. This has resulted in a prior year adjustment. The correction has resulted in a reduction in profit of £114,563; reduction of cash in bank and in hand by £114,563 and a reduction of amounts due to HM Revenue & Customs of £38,206.” A dividend of £108,525 was paid (2022: £60,000). Russell opened his first site in 2001 having spent most of his career working for the Greenalls hotel and pub company but felt he wanted to work for himself. Russell decided to leave his job as an operations director and began working part-time at a McDonald's restaurant to decide whether he would enjoy working for the company. After six months, he made the step to train as a franchise holder and then opened his own restaurant, in Ardwick, Manchester. The company now employs around 400 staff.