Hollywood Bowl reports record revenue driven by growing Canadian estate, UK lfl revenue flat reflecting ‘anticipated normalisation in trading’: Hollywood Bowl has reported record revenue for the year to 30 September 2024, driven by its growing Canadian estate, with UK like-for-like revenue flat, reflecting an “anticipated normalisation in trading following three years of exceptional performance”. Group revenue of £230.4m was up 7.2% on FY2023, with UK revenue up 3.8% to £199.7m and Canada revenue up 42.2% on a constant currency basis to CAD 53.0m (30.7m). Group like-for-like revenue growth was 0.2%, with UK total like-for-likes at 0.0% (UK bowling centres +0.3%) and Canada like-for-likes up 6.3% (Canada bowling centres +5.9%) on a constant currency basis. The group expects to report Ebitda ahead of market expectations and in excess of £65.0m. Eight centres were added in the year, four in the UK and four in Canada, including its first new Canadian development, which opened in Waterloo, Ontario, in July. Hollywood Bowl’s portfolio now stands at 72 UK centres (2023: 70) and 13 Canadian centres (2023: 9). York Hollywood Bowl and Puttstars were amalgamated into one centre during the year and Surrey Quays Hollywood Bowl closed on 3 September 2024, in line with the closure of the wider leisure park in which it was located. A strong new centre pipeline is in place for FY2025 and beyond, with four bowling centres due to open in the UK and two centres in Canada, and it is on track to achieve target of 130 centres across the group by 2035. A new customer reservation system rolled in the UK in July and a pilot has commenced in Canada. The group had £28.6m net cash at year end, following record levels of capital investment in FY2024 (FY2023: £52.4m), and an undrawn £25m revolving credit facility. The group said: “Total UK like-for-like revenues were flat in the year, in line with expectations, with 0.3% like-for-like revenue growth in the Hollywood Bowl centres and a decline in like-for-like revenues in the Puttstars trial concept centres. The total UK like-for-like performance reflects the anticipated normalisation in trading following three years of exceptional performance, with compound annual growth of over 6% delivered since 2019. Canada continues its strong performance as like-for-like revenues grew 5.9% on a constant currency basis in the bowling centres, with total like-for-like revenues (including Striker Bowling Solutions) up 6.3%. Investment in the size and quality of the group’s estate continues to drive strong returns and enhance our customer proposition, resulting in increased dwell time and higher spend-per-game. The group successfully completed the rollout of its new, internally developed customer reservation system to all UK centres in July 2024, resulting in increased usability, reliability, speed, and sales conversion rates. The technology is currently being piloted in Canada with a full roll out expected in the first half of FY2025. The group remains well insulated to ongoing cost pressures, with over 70% of revenue not subject to cost-of-goods inflation, enabling it to maintain its value for money pricing while continuing to invest in the customer experience. As a result of the successful execution of its customer proposition and the continued strong demand for high quality, great value leisure experiences, the group expects to report Ebitda ahead of market expectations and in excess of £65.0m.” Chief executive Stephen Burns added: “We are pleased with our full year performance, both financially and operationally. We have delivered further profitable growth, demonstrating the success of our proven, customer-led strategy. We have continued to grow our estate in the UK and Canada and drive strong returns through the ongoing investment in our centres. Our team’s dedication to providing consistently excellent customer experiences is reflected in increased dwell time, higher spend per game and positive customer feedback. We remain confident in the long-term opportunity for future profitable growth across both the UK and Canada. Our strong cash position means we are well placed to continue to invest in our growth, increasing the size and quality of our estate and looking to continually enhance the customer experience.” The group expects to publish its final results for the year on 17 December 2024.
Next Who's Who of UK Hospitality to be released on Friday featuring 873 companies: The next Who’s Who of UK Hospitality will be released to Premium Club members on Friday (25 October), at midday. Another 20 companies have been added to the database, which now features 873 companies. This month’s edition will also include 101 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 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.
Big Mamma Group sees UK turnover pass £40m as pre-tax profit jumps to £3.7m: Big Mamma Group, which is backed by McWin, has reported turnover increased to a record £40,894,782 for the year ending 31 December 2023 compared with £25,884,339 the previous year. The company, which operates five sites in London, saw pre-tax profit climb to £3,672,773 from £359,085 the year before. Gross profit margin increased to 72.0% from 67.3% the previous year. The company incurred pre-trading expenses of £1,002,897 (2022: £1,891,339). In their report accompanying the accounts, the directors stated: “2023 was the first year all five sites were operating. Out of the five, four operated throughout the year. Gloria, Circolo Popolare, Ave Mario, Jacuzzi and Carlotta all performed strongly in excess of expectations driven by the strong brand presence on social media and consistently high customer feedback scores. Each of these factors has enabled the group to maintain its high demand for the product with the restaurants continually fully booked one month in advance up throughout 2023.” In October 2023, McWin bought a majority stake in Big Mamma Group in a deal valued at €270m. Big Mamma Group, which employs around 540 staff, is set to make its regional debut next month with an opening in Birmingham, and is also set to strengthen its London footprint with a site in Canary Wharf.
Big Mamma Group features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members and features 994 companies. Its turnover of £40,894,782 is the 252nd 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.
Greggs to open new larger format store in Newcastle: Food to go retailer Greggs is set to open a new larger format store in Newcastle. It will open the 3,491 square-foot unit in the city’s Metrocentre in time for Christmas. It will be a fourth Greggs store in the shopping centre and double the size of its current largest shop there, with capacity for 89 seats. Gillian Long, retail operations director at Greggs, said: “We are delighted to be opening a new, larger format Greggs in the heart of Metrocentre’s Town Square. This location will offer customers more space to enjoy their Greggs favourites and the ideal location for a pit-stop on a day out.” Last week, Greggs announced the launch its first Champagne bar, which will operate in Fenwick’s Newcastle store from Thursday, 24 October until the end of December. It follows the first Greggs “fine dining” bistro at the same location last year. Earlier this month, chief executive Roisin Currie said Greggs’ “strong like-for-like growth” in the third quarter was driven by new products popular with younger consumers, and that the brand is looking to keep stretching its trading hours “in the right locations”.
Hundreds of business leaders call for the return of tax-free shopping for overseas tourists: Hundreds of business leaders have called for the return of tax-free shopping for overseas tourists. In a letter to the Chancellor, some of Britain's biggest retailers, hotels and restaurants have warned that removing the VAT refund for visitors has been “a spectacular own goal”, reports the Daily Mail. Reinstating the incentive would be a win both for business and the taxpayer, more than 300 firms say, giving the economy “an immediate shot in the arm”. Hotelier Sir Rocco Forte and the owner of the Westfield shopping malls are among those who argue that the cost of 20% VAT refunds is outweighed by the enormous benefits of encouraging more visitors to Britain. They said the UK is now the only country in Europe to not have a rebate scheme, leaving British businesses at a “massive global disadvantage”.
Non-drinkers pushing alcohol off campus: University drinking culture is in such dramatic decline that student union bars across the country are being forced to close because they do not make money. A generation of youngsters who are more health conscious and a growing population of students who do not drink for religious reasons have forced many student bars to reinvent themselves, reports The Telegraph. At the University of Bradford, sales were so low at the student union bar that the institution has just spent £2m transforming one of its student bars into an alcohol-free cafe, which opened in September. “The main driver was that the bars here were not making money,” says Aleem Bashir, the chief executive of the university’s student union. “If you’re not making money, you can’t continue doing something. That’s just common sense, isn’t it?” The university consulted with student groups, and the message was that they wanted an alcohol-free space. Since it opened, sales at the cafe have already exceeded those at the old bar. Bradford was not the first. Abertay University in Dundee closed its student union bar in 2019 and turned it into an events space after sales plunged by two thirds. The University of Aberdeen turned its Union Brew Bar into a coffee shop in 2022 after its takings totalled little more than £2,000 over the four months it was open in 2020-21. Many universities, including the University of Surrey and the University of Exeter, have also started offering alcohol-free accommodation. The University of St Andrews, which was one of the first to do so in 2015, says demand for this type of room has climbed every year and is so high the university is expanding availability.
