Exclusive – Angus Steakhouse plans return to expansion trail with new look as it targets younger demographic: Noble Hospitality Group – the group behind Japanese concept Chotto Matte, Steak and Company and Alley Cats Pizza – is to return its Angus Steakhouse business to the expansion trail with a new look and updated offer, as it looks to target a younger demographic. Paul Sarlas, formerly of Burger King, Hilton and Ping Pong, who was promoted to chief executive of Noble Hospitality Group earlier this year, told Propel the company hoped to open the first new Angus site in London next year and has received approaches to take the brand – that currently operates five sites in Central London – overseas. Sarlas said: “Since my appointment, ensuring product quality has been a priority, which includes aligning Angus Steakhouse’s suppliers with those trusted by Chotto Matte. The next phase is redevelopment of the brand, which we have done, and then we hope to open our first new site mid to late 2025, with the new brand of Angus, and hopefully growing that back to where it used to be. We are already talking to our partners with Chotto Matte, to franchise externally as well.” The new model will be based, in terms of size, on its existing site in Covent Garden – one floor with circa 150 covers. Sarlas said: “We class Steak and Company as a steak brasserie, whereas Angus is a steakhouse. Over the past two years, it has been about really finding what we are known for? What are we good at? Why do people come in? We’re not trying to be Hawksmoor. We’re not trying to be Gaucho, or those concepts more led by tourist trade alone, like the Hard Rocks and so on. We’re a British steakhouse, and we really focus on that element. I think there’s a lot of international restaurants, a lot of South American steakhouses, but for us, we should be proud that we’re British. Our vision of going internationally is saying we are a British steakhouse, and by doing that, I think we can differentiate ourselves.” A recent “love-bombing” campaign through social media channel Reddit led to a spike in digital engagement, especially from Generation Z, for the brand. Sarlas said: “A lot of people in the 40 to 60 age bracket just remember Angus as where it was. What I’m trying to do is get the young generation to come in. The whole scope for our marketing response to the campaign is to target the audience from 30 and under and encourage them to form their own opinions. They have no preconception on what the business was like in the past.” In this week's Propel Premium Opinion, which will be sent to Premium Club members today (Friday, 8 November) at 5pm, Sarlas talks about changing perceptions about the iconic Angus Steakhouse brand, its place in the market, and opportunities for growth for it and sister brand Alley Cats Pizza. Meanwhile, Propel group editor Mark Wingett looks at the recent deal activity from Caffe Nero and the fallout from last week’s Budget and whether it will lead to more “stranded assets”. 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.

 

Premium Club members to receive new searchable and segmented New Openings Database today, videos from Multi-Club Conference on 22 November: The next Propel New Openings Database will be sent to Premium Club members today (Friday, 8 November), at 12pm. The database will show the details of 196 site openings, including which company has opened a site or its plans to open one in the future. It will have details on what type of site it is and its location, and there will also be a website link to the businesses. The database is published on a monthly basis and Premium Club members will also receive a 10,553-word report on the 196 new additions to the database. The database is now segmented into seven categories – cafe bakery, casual dining, experiential leisure, fine dining, hotels, pubs and bars, and quick service restaurants – making it even easier for users to search. Premium Club members will also receive all the videos from the final Propel Multi-Club Conference of 2024 on Friday, 22 November, at 9am. They include Ben Fogle, the TV personality who has summited Everest, raced to the South Pole and rowed the Atlantic, talking about overcoming adversity, teamwork and leadership; and Adam Martin, managing director of Tesco Hospitality, talking about evolving the food and beverage offer across circa 500 in-store cafes at the UK’s leading supermarket business, how the company stays on top of consumer trends and its work with sector brands. Premium Club members also receive access to five other databases: the Turnover & Profits Blue Book, the Multi-Site Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who’s Who of UK Hospitality. 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.

 

Agent – premiums have returned to the lease market in London for first time since covid, with availability at lowest levels since pandemic: David Rawlinson, founding director of agency Restaurant Property, has told Propel that premiums have returned to the lease market in London for the first time since covid, with availability at its lowest level since the pandemic. Rawlinson, who has 25 years’ experience in the market, said: “A client recently bid 25% over the asking rent for a site in Denman Street, Soho, owned by Shaftsbury Capital, and they still missed out. There were 15 offers on the site, which was available at no premium, so it’s no surprise to see the return of premiums being paid when there is such pent-up demand. We track all sites available both on and off-market via all the major London-based agencies, and this is the lowest stock level we have seen across the board since covid. We are now seeing operators bidding significant premiums for prime sites, as long as the rents are sustainable. Despite tough trading conditions and the majority of restaurateurs operating on marginal profits, the ‘best-in-class’ top 5%-10% of operators are now back to pre-covid numbers in terms of turnover and profit. In 25 years of selling restaurants, I have never seen such a fragmented market.” Rawlinson also said the looming cost increases as a result of the Budget has led to an influx of leaseholds being put up for sale. He added: “We have just taken on a prime 6,000 square-foot site in Mayfair at £1m premium, a 3,000 square-foot corner site in Soho, and a fully fitted prime City site, all of which we expect to achieve significant premiums for.”

 

UKHospitality – ‘welcome’ cut in interest rates significantly overshadowed by looming £3.4bn worth of cost increases that will hit the sector in April: UKHospitality has said the “welcome” cut in interest rates is significantly overshadowed by the looming £3.4bn worth of cost increases that will hit the sector in April. The Bank of England has cut interest rates from 5% to 4.75%, its lowest level since June last year, and the second reduction in three months. In response, UKHospitality chief executive Kate Nicholls said: “This interest rate cut is positive news in the short-term for hospitality businesses, particularly those still struggling with pandemic debt repayments, and consumer confidence. However, the short-term benefit of this cut is significantly overshadowed by the looming £3.4bn worth of cost increases that will hit the sector in April. Those changes will impact the potential for future interest rate cuts too, with forecasts already revised down following the Budget. We need the government to take action to mitigate these increases. particularly the lowering of the employer national insurance contribution threshold. Lowering the threshold to £5,000 suddenly brings in thousands of part-time staff, and that disproportionately hits hospitality. Government action to reduce the devastating cost impact in April is essential.” Michael Kill, chief executive of the Night Time Industries Association, added: “While the Bank of England’s rate cut from 5% to 4.75% offers some relief, it does little to ease the mounting economic pressures on the nightlife sector, which are only intensified by the recent autumn Budget. The introduction of new tax increases at this crucial time, right before the ‘golden quarter’, could not come at a worse moment. Looking ahead to 2025, the combined impact of rising operational costs and declining consumer spending is set to create a perfect storm for the industry.” 

 

Glynn Davis – more failures on the cards for independent breweries without guaranteed channels to market: Glynn Davis, a leading commentator on retail trends, has warned that more failures are on the cards for independent breweries without guaranteed channels to market. Davis is a former co-owner of north London’s Bohem Brewery, which was founded in 2017 by Petr Skocek and Zdenek Kudr, exclusively brewing traditional Bohemian lager. Writing exclusively in today’s (Friday, 8 November) Propel Friday Opinion, Davis examines the current landscape for, and difficulties being faced by, independent brewers. “My experience at Bohem Brewery, in which I was a founder shareholder when investing in early 2017, has highlighted how I reckon it is near-impossible for a start-up brewery to succeed if it does not have sufficient guaranteed channels to market – namely in the form of its own pubs and bars,” Davis said. “My own involvement with Bohem has shown that independent breweries without a decent pub estate to sell their beer through will face ongoing pressures, and sadly, there will be more failures. It’s why I sold out at a painful 80% loss. Along with many other craft breweries, Bohem has produced some excellent beer, but as an investment, these businesses can leave a sour taste in the mouth.” Davis will share more of his thoughts in Propel’s Friday Opinion, which will be sent out today at 11am.

 

Uber Eats launches new £250,000 fund to support black-owned restaurants across the UK: Uber Eats has launched its annual £250,000 fund for black-owned restaurants across the UK. For the fourth year running, 25 black-owned businesses with fewer than five locations will receive a £10,000 grant, more than half of which will be based outside of London. The cash grants have been made available in collaboration with Enterprise Nation and Be Inclusive Hospitality. Since its launch in 2021 with an initial £5,000 fund, the Uber East Black Business Fund has scaled up, having awarded £550,000 to eligible applicants over the past three years. This year’s funding will take the total amount awarded past £750,000. Applications open on Thursday, 14 November. Matthew Price, general manager at Uber Eats UK, Ireland and northern Europe, said: “Past grant recipients have used the funding for essential investments – whether upgrading equipment or expanding their teams and staff training. We’re proud to continue empowering the next generation of black entrepreneurs, helping their businesses thrive.” 

 

Barrio Bars co-founder set to launch new venture: Ferdie Ahmed, co-founder of Barrio Bars, is set to launch a new venture called Frenchmen Street Bars, Propel has learned. Ahmed, who co-founded Barrio Bars with Ani Kyriacou, said the new business will open its first site next year, in London’s Soho. The business is set to open a “friends and family fundraiser to past super-fans, cocktail connoisseurs and anyone who struggles to find their spot in Central London (with amazing perks)”, to fund the start of the venture. Propel understands that bar and drinks consultant James Triffo is also involved in the new business. Ahmed said: “We’re assembling a team of industry veterans to bring back a legendary east end drinking den, reimagined for the streets of Soho. From the Latin Quarter to the French Quarter, this is our love letter to the great city of New Orleans, Louisiana – reimagined and brought to life for London’s nightlife scene.” Barrio Familia, the company behind the five-strong Barrio Bar Group, was acquired by Nightcap in November 2021. Barrio Bar Group comprises four Latin American-inspired, tequila-led, cocktail bars in London that traded under the Barrio name (Shoreditch, Angel, Soho, Brixton) and a high end 1960s themed members’ cocktail bar that trades under Disrepute, in Soho. The consideration paid for the five-strong business was £4.935m. 

 

Chinese tea brand Heytea builds UK pipeline, secures debut site in Scotland: Chinese tea brand Heytea, which made its European debut with an opening in London’s Chinatown last summer, is continuing to build its UK opening pipeline and has secured a debut site in Scotland for 2025, Propel has learned. Founded by a 19-year-old Neo Nie Yunchen in 2012, the brand, which is backed by L Catterton, has grown from a 300-square foot tea shop in Guangdong, China, to a “pioneer in new Asian tea”, with more than 4,100 sites across 300 cities worldwide, including outlets in the US, Canada and Australia. The business currently operates 12 sites in the UK, including seven in London and two in Manchester. Over the past two months, it has opened sites in London’s Baker Street, Leeds and Southampton. Heytea also ran a pop-up store at the Royal Opera House in London’s Covent Garden during September. In July, Heytea launched a new large concept store in New Oxford Street, London. Propel understands that Heytea has secured the former Casey’s to Go site at 124-126 Byres Road in Glasgow for its first Scottish store, with an opening planned for early next year. At the same time, Heytea is thought to be in talks to open sites in Reading and Edinburgh. 

 

Domino’s franchisee secures company’s second highest opening day since it launched in the UK 40 years ago: Domino’s franchisee Racz Group has secured the company’s second highest opening day since it launched in the UK 40 years ago. Racz Group, a multi-brand franchisee based in the north east of England, launched this week at 2a Ballymena Road in Ballymoney, Northern Ireland. The store is one of nine new Domino’s outlets Racz Group last week said it would be opening before Christmas. “Racz Group opening day record!” a group spokeswoman said. “We’re excited to announce the grand opening of our new Domino’s in Ballymoney, Northern Ireland. Not only was it an exciting launch, but it was a record breaker! We served 988 pizzas to satisfy the incredible appetite of the Ballymoney community, helping Racz Group achieve its highest opening day. But not only that, it was the second highest opening day since Domino’s entered the UK in 1985! Here’s to more record-breaking days, new beginnings, and lots more pizza. Another one down, seven more to go.” Racz Group – founded in 2004 by Mike Racz, who started out as a Domino’s delivery driver after coming to the UK from Hungary – passed the 60-store landmark earlier this year. Racz Group also owns 18 Costa Coffee stores around the Lake District and Cumbria, as well as the Black Olive restaurant and bar in Hartlepool Marina. The company also owns three sites for beer and barber concept, Head Quarters, and opened its first Grounded Kitchen franchise in 2022, in Gateshead.

 

Bulk of Kanada-Ya acquired out of administration: The bulk of the London ramen concept Kanada-Ya has been acquired via a pre-pack administration by a new vehicle, which includes one of its current directors, for a total consideration of £85,000, Propel has learned. In September, Colin Wilson and Trevor Binyon, of Opus Restructuring, were appointed joint administrators of the company, which Kanada-Ya, which is led in the UK by Tony Lam and Aaron Burgess-Smith and operates sites in London’s Ealing, Piccadilly, Angel and St Giles High Street. Sites in Westfield Stratford and Carnaby, which operate under franchise, were not included in the process. The four sites have been acquired by a new vehicle, which includes Burgess-Smith as a director. The joint administrators report stated: “In 2020, the company navigated the covid-19 pandemic and introduced delivery and takeaway that represented up to 30% of trade. Subsequently, the company took out loans under the Coronavirus Business Loan Scheme and the Recovery Loan Scheme to facilitate trading during covid, which had added significant pressure to business cash flow. In 2022, the company delivered its first franchised location in London’s Carnaby Street; a second franchised location was due to open in July at Westfields White City. However, due to cash flow pressure, combined with insufficient operating cash flows (for example from sales), this is combined with creditor pressure, the company could not continue its business. The company had exhausted its available cash resources, and its cash constraints were impacting on its ability to continue trading. The company’s shareholders and investors confirmed they were not able to provide the level of additional funding necessary to help continue the company to trade. It was identified and agreed that administration would be the best option for the company and a pre-pack sale would be progressed for a potential sale of the business to maximise the value of the assets.”

 

Soho Coffee launches new format store at London Westfield for 30th UK site: Soho Coffee Co – which has 44 stores across the UK, Europe and the Middle East – has launched a new format store at London Westfield for its 30th UK site. Propel revealed earlier this week that Soho Coffee, having appointed Krishma Vaghela as its new franchise consultant, was lining up a new store opening for this week. Soho Coffee & Kitchen has now opened at Westfield in White City, west London, featuring “a new menu, offering a wider variety of food and drink options than ever before”. The company said: “Soho Coffee & Kitchen isn’t just a new store, it reflects one of three new formats for the brand, as it continues to grow and expand across the UK and beyond, via both company and franchise operated stores.” Soho Coffee chief executive Sam Shutt added: “We are excited to bring this new concept to Westfield London. Our mission with Soho Coffee & Kitchen is to create a place where good is always served. Our customers can come together over crafted conscious coffee and good mood food. The blend of quality products, environment, and atmosphere is what sets us apart, ensuring ‘that Soho good’ experience”. Last week, Propel reported that Soho Coffee’s turnover increased to a record £18,705,444 for the year ending 28 January 2024 compared with £16,168,162 the year before. Pre-tax losses were up to £3,208,677 from £2,974,553 the previous year.

 

Pret makes debut in Portugal: Pret A Manger has opened its debut site in Portugal, at Lisbon’s Colombo Centre – the largest shopping centre in the country. Last November, Pret opened its first site in Spain in partnership with Ibersol Group – at Josep Tarradellas Barcelona airport – as part of plans to open 70 sites there and Portugal in the next decade. Pret has a strategic ambition to expand the brand across Europe, and the stores opening in the Iberian Peninsula will be in major cities and strategic commercial hubs, such as airports and railway stations. Stéphane Klein, managing director, Pret A Manger Europe, said: “Together with our franchise partner, Grupo Ibersol, we have great ambitions to bring Pret’s freshly made food and drinks to more people in Portugal and in the Iberian Peninsula. We have high hopes for this shop and for the success of Pret A Manger in Portugal.” The debut in Portugal comes as Pret has released details of its Christmas menu. Those items returning include Pret’s Christmas Lunch Sandwich, plus the introduction of a brie and caramelised onion toastie and Kamilla’s maple pecan latte. For every Christmas Lunch Sandwich and Very Merry Sandwich sold, 50p will be donated to The Pret Foundation, which works to alleviate hunger and homelessness by supporting grassroots charities across the UK via food donations, financial aid and employment opportunities.

 

Archie’s launches new roller-skating concept, plans rollout: North west burger, shakes and waffles concept Archie’s has opened its new roller-skating concept – and plans to roll it out. The 25,000 square-foot Archie’s Atomic has launched in Manchester’s Trafford Palazzo in the former Next premises following a £3m investment, creating 100 jobs. The site, which has capacity for more than 750 people, includes a 5,000 square-foot roller rink – the largest in the north west – as well as an arcade area with an immersive games box, private party rooms, DJ decks, an Archie’s diner and Archie’s milkshake bar. The Archie’s team said it has ambitious expansion plans for the Atomic concept, setting its sights on rolling it out further in other high-footfall shopping and leisure destinations across the country. Nuno Lopes, operations director at Archie’s, said: “Our project team has truly outdone itself with the fit-out of this space, and it feels like a huge step forward for us as a business.” Founded in Manchester in 2010, Archie’s currently operates nine sites under its eponymous brand in Manchester, Birmingham, Leeds and Liverpool. Earlier this year, the company told Propel it was in talks about a launch in the Middle East and is aiming to open two or three sites annually for the next five years. A new report has been produced by Propel on the fast-growing experiential leisure sector. The report profiles the current shape of the experiential leisure market – including brands, estate size, trading type and geographical location and future trends. It provides a detailed list of UK experiential leisure companies including key staff and Companies House information. The report includes more than 180 companies, 3,500 sites and a 35,000-word report. The report is available to Premium Club members. 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.

 

Gary Neville and MasterChef star's restaurant goes into liquidation with £1m debts including £519,000 in owed taxes: Gary Neville’s Leeds restaurant has gone into liquidation with £1m in debts including £519,000 owed in taxes. The restaurant, called Man Behind the Curtain, in Vicar Lane, was launched in 2014 and was run by chef Michael O’Hare, with Neville owning 50%. The restaurant was awarded a Michelin star in October 2015, as well as three AA Rosettes in 2016 and attracted investment from Neville. But it closed at the end of 2023 and O’Hare has since opened a new restaurant in the city called Psycho Sandbar. Now, newly filed documents with Companies House have shown total debts of £993,684. Among those owed is Neville’s company, Relentless Leisure, to the tune of £366,848. The statement of affairs reported £9,500 in estimated assets for creditors and a director’s loan owed at £500,000, described as “uncertain” for payback. Lloyds Bank is reported as being owed £14,000, with HM Revenue & Customs’ debt being £519,284, while landlord Town Centre Securities is owed £72,275. Vincent Simmons, of BV Corporate Recovery and Insolvency, has been appointed voluntary liquidator. O’Hare remains the sold director of the company with Neville having stepped down in September. The accounts for 2023 are overdue, but those for 2022 reported a profit of £187,000 and reserves of £105,938. Among Neville’s portfolio is Hotel Football and The Stock Exchange Hotel in Manchester. In 2020, it was reported the Hotel Football suffered a loss of more than £3m over the space of two years, with parent company Orchid Leisure reported to have loaned the business £10.2m to keep it afloat.

 

Valiant Pub Company adds Tyneside pub and brewery to estate: Valiant Pub Company, which was founded by Hawthorn Leisure co-founders Gerry Carroll and Mark McGinty at the start of 2021, has added a Tyneside pub with rooms and a brewery to its 70-strong estate. The company has acquired The Keelman Arms and Big Lamp Brewery in Newburn, Newcastle. The business, situated on the banks of the River Tyne, has 14 bedrooms and has been owned and operated by the same landlord since its opening in 1982. Last month, Valiant acquired its 70th site as it reported turnover has more than doubled. The company added the Elephant & Castle in Telford to its portfolio. For the year ending 31 March 2024, Valiant’s turnover more than doubled to £18.2m, up from £8.3m in FY23, “reflecting the business’ robust position and continued strong growth across the UK”. More than 40% of Valiant’s pubs now offer food, while it has more than 100 bedrooms across its locations in the north east, north west, Midlands and Wales. Valiant said it is committed to further acquisitions, with plans to significantly increase its portfolio in the coming months. Propel last month that Valiant, which is backed by investment firm Njord Partners, has secured a £12m loan facility with Metro Bank to support its plans. Valiant previously told Propel it had the firepower to triple its then 50-strong estate if “the right opportunity” came along. David Cash, of Christie & Co, acted on the Keelman Arms deal. 

  

Auntie Anne’s to open in Basingstoke tomorrow: Pretzel brand Auntie Anne’s is set to open a new location in Basingstoke tomorrow (Saturday, 9 November). Auntie Anne’s will open a kiosk in the town’s Festival Place shopping centre for its second Hampshire location, following its site in Southampton’s Harbour Place. Offering freshly baked, hand rolled pretzels in both sweet and savoury flavours, it will be the US brand’s 39th UK store. Director of operations for Auntie Anne’s UK, Antony Baker, said: “We’re thrilled to bring Auntie Anne’s to Festival Place, marking our 39th UK and Ireland location. This store embodies our commitment to fresh, handcrafted pretzels, and we can’t wait for Basingstoke to enjoy the full Auntie Anne's experience.” Auntie Anne’s is operated here by Buckinghamshire-based Freshly Baked. The company last month opened its first UK travel location, at Brighton station, and told Propel it is exploring more travel hub opportunities and looking to open six more stores this year. In the longer term, it is aiming to open 100 new stores across the UK and Ireland over the next decade. Freshly Baked also this year became the UK master franchisee for Dutch better burger brand Fat Phill’s.

 

Blind Tiger Inns opens 20th site with Star Pubs and 22ndoverall: North west multiple operator Blind Tiger Inns has opened its 20thsite with Heineken-owned Star Pubs & Bars and 22nd overall. The two companies are now carrying out a joint £150,000 refurbishment of The Stanley Arms in Lancaster Road, in the centre of Preston, before reopening it in late November. The investment will transform the historic grade II-listed pub into a “premium space that specialises in sports and entertainment”. The Stanley Arms will be drinks only and will offer a range of premium beer, wine and spirits as well as cocktails and coffee. The project is the fifth investment Blind Tiger Inns has undertaken this year and the second it will have completed in November, having recently opened The Grosvenor, an 800-capacity venue in a former cinema in Manchester. Managing director Chris Tulloch said: “We invest in a five-year cycle at all our venues and get a return on the new interest it generates from consumers. 2024 has been a strong year for both our community and city/town centre pubs, and despite the challenges facing the industry, we are keen to expand in 2025 if the right opportunities become available.” David Pritchard, regional operations director for Star Pubs, added: “We have a close relationship with Blind Tiger Inns and enjoy working with it and finding new sites for development that fit their business model. It is always quick to identify the latest trends and roll them out at an early stage, keeping its pubs fresh and relevant.” Last month, Tulloch told Propel that Blind Tigers’ new “adult playground” concept introduced at The Grosvenor could be a “blueprint for future venues”. Attractions there include pool tables, beer pong tables, a photo booth, Manchester club nights, interactive quiz nights and live music from local DJs and bands.

  

Former McDonald’s UK head of franchising sees franchise business return to profit, two acquisitions help boost turnover: Midlands McDonald’s franchisee HFLC, based in Birmingham and led by former McDonald’s UK head of franchising Dean Chapman, returned to profit in the year to 31 December 2023. The business started the year with seven restaurants and acquired two more during the period – and post year-end, opened a further restaurant in Birmingham’s Exchange Square. The company saw a pre-tax loss of £103,021 in 2022 turn into a profit of £280,302, while turnover was up from £21,272,958 to £36,579,680. No government grants were received (2022: £30,000) and dividends of £81,000 were paid (2022: £82,400). “Turnover for the year increased by 71.95%, with an increase in gross profit of 71.02% compared with the previous year,” Chapman said. “The business expanded towards the end of the financial year with the purchase of two additional McDonald's restaurants, taking the group size to nine restaurants. In common with many other similar businesses and industries, the war in Ukraine has had a significant impact on raw product costs, fuel costs and utility costs, with labour costs also increasing considerably along with other overheads. However, this year’s trading produced an operating profit of £446,740 (2022: loss of £55,279). There were also a number of one-off costs that had a significant impact on the company's financial performance.” Chapman was McDonald’s head of franchising in the UK before quitting in 2015 to set up his own franchise business.

 

Berberè confirms opening in London’s West End: Berberè, the independent Italian company founded by brothers Salvatore and Matteo Aloe that operates 19 sites, including two in London, has confirmed it will open a third site in the capital’s West End before the end of the year. Propel revealed in September that Berberè is set to open at 2 St Giles Square, which will also be home to a new site from the world’s first prison-based coffee company, Redemption Roasters. Berberè has now confirmed the new site in the Outernet Building will open on Thursday, 5 December. Salvatore Aloe said: “This will be our third location in the capital, and we can’t wait to land in the heart of the city. Renowned for its rich cultural history and eclectic energy, this is an area that has seen continuous transformation and blends modern developments like Outernet and the rich music history of Denmark Street. Opening a new pizzeria in the heart of a city like London feels the perfect way to close the year.” Last summer, Berberè secured new investment to aid further expansion in Europe. Milan-based investment firm Hyle Capital Partners made a “significant injection of capital” into Berberè, while the founders acquired the 23.5% stake in the business previously held by Miscusi. Berbere said that with the new funding, it planned to open five new locations each year for the next four years, both in Italy and across Europe. Berberè currently operates 17 sites in Italy across Milan, Bologna, Turin, Florence, Rome and Verona. The company also operates sites in London’s Kentish Town and Clapham.

 

London’s first avocado restaurant to return to the capital this month: Avobar, billed as London’s first avocado restaurant when it launched in 2017, will this month make its return to the capital. Founder Liana Kazaryan started Avobar as a pop-up before launching its first permanent location six years ago, in Covent Garden’s Henrietta Street. That site closed last year and was replaced by bistro and bar concept Bar du Champagne, from the same owner. Avobar will now this month make its return, opening a small format café at The Portman Estate’s 60 Chiltern Street in Marylebone. Using sustainably sourced avocados and coffee beans from Peru, its menu will be based around wellness boosting dishes. While it has been absent from London, Avobar has maintained its overseas location at the Yas Mall in Abu Dhabi and Hong Kong’s Victoria Lakeside.

 

Largest bakery and cafe brand in Israel set to open second UK site for its luxury pastry concept: Roladin, the largest bakery and cafe brand in Israel, is set to open a second UK site for its luxury pastry concept, Donutelier. In 2023, Donutelier made its UK debut in 2023, in the former Patisserie Valerie site on the corner of Charing Cross Road and Great Newport Street in London, describing the launch as the world’s first “Donutelier” concept. A new store will now open at 49 Upper St John Street, off Carnaby Street, on Monday, 26 November, offering an exclusive Carnaby Street special doughnut, the Carnaby Toffee Pudding. The store will also feature Donutelier’s new Christmas Collection, including its White Forest, Santa Babà and St. Honoré doughnuts. There will also be a range of croissants, speciality pastries and house blend coffee. Spanning 1,330 square feet, Donutelier’s new location has a larger dedicated seating area than its debut site. Donutelier’s chief marketing officer, Théa Marks, said: “We hope our new boutique located right in the centre of the iconic Carnaby Street will hit the sweet spot.”

 

London hotel owner and management company takes on operation of three Hampton by Hiltons: London hotel owner and management company KE Hotels has taken on the operation of three Hampton by Hiltons. KE Hotels has signed hotel management agreements with Hampton by Hilton for its Newcastle, Birmingham Broad Street and Sheffield sites. It adds to the company’s owned portfolio of Moxy Manchester, Linton Lodge Oxford, Hotel Indigo Newcastle and Holiday Inn Luton airport. In addition, KE Hotels owns and operates a collection of eight hotels in California, in the US. “We’re delighted to be taking on these three Hampton by Hilton hotels, operating alongside Hilton,” said chief executive Josh Watts. “This venture represents an exciting new chapter as we continue to expand our footprint in the UK hospitality market.” Managing director Anil Khanna added: “KE Hotels is proud to continue our expansion from hotel owner-operator to managing properties under hotel management agreements, further solidifying our footprint in the UK market. The Hampton by Hilton properties are an ideal fit for our expanding portfolio, and we look forward to delivering outstanding results for these hotels and their owners.” The US branch of the business, which was started by four Khanna brothers in California in 1989, is called Khanna Enterprises. Anil started the UK operations with the acquisition of the Best Western Westminster Hotel in Nottingham in 2001, which he sold in 2014. He has also previously operated a former Macdonald Hotels venue in Kenilworth, which he converted to a Holiday Inn before selling it in 2017, and the Abbey Hotel Bath, which was sold in 2022.

 

Entrepreneur who hires school kitchens to run takeaway business set to expand after it proves a success: An entrepreneur who hires school kitchens to run a takeaway business is set to expand after it proved to be a success. David Nicholson operates seven different restaurant concepts from Carr Junior School in Acomb, York, as part of his School Kitchen venture. He takes over the catering facilities outside of school hours and has plans to use a second school in the city, as well as locations in Harrogate, Leeds and Sheffield, reports the BBC. The chef said staff are paid a living wage and all deliveries are done in-house. He had the idea before the pandemic as he had noticed more and more dark kitchens opening. “There was a growing number of these kitchens where food is prepared out of places like shipping containers then delivered to customers,” he said. “I wanted to do something like that, but in a way that would have a positive impact on the community, so I came up with the idea of School Kitchen.” Customers can order Spanish, Italian, Sri Lankan, Thai and Mexican dishes, and orders come in via the School Kitchen or Deliveroo websites. “It took a long time to find [a school] that was willing to be the first,” he said. “There were worries about safeguarding and cross-contamination of food for people with allergies, and we also had to get planning permission.” Now, the business is looking to set up cookery programmes and an apprenticeship scheme, he added.

 

Sandbox VR UK franchisee launches at Gravity Max Wandsworth for third venue here: VR Entertainment, the UK franchisee of virtual reality (VR) brand Sandbox VR, has launched at Gravity Max Wandsworth in London for its third venue here. The VR studio allows groups of up to six players to immerse themselves in one of nine exclusively designed experiences, offering cutting-edge VR technology, full body tracking systems and haptic feedback vests. The Gravity Max venue houses two Sandbox free-roam virtual arenas and post-experience booths, where guests can watch back the best action and check out the top scores. They operate alongside Gravity Max’s own experiences, including go-karting and augmented reality darts and bowling, as well as food and beverage options. Sandbox VR, which opened its first UK venue in London’s Holborn in July 2022 and has its largest VR venue in Birmingham’s Grand Central, operates circa 50 venues globally. In July, VR Entertainment closed its crowdfunding campaign, to aid its ambition to operate 30 venues across the UK and Ireland by 2031, after raising more than £1m. VR Entertainment had been aiming to raise £500,000 and was offering 9.71% equity in return for the investment, giving the company a pre-money valuation of £10m.